Increase in the Cyprus VAT rate

For the period from 14 January 2013 to 12 January 2014 the standard VAT rate will increase from 17% to 18% for the supply of goods and services. 

Furthermore, as from 13 January 2014 the standard VAT rate will further increase from 18% to 19%. Therefore, all the supplies of goods and services that are currently taxable with the standard VAT rate of 17%, will become taxable at the rate of 18% from 14 January 2013.

The supplies of goods and services that fall under the zero VAT rate or are exempt from VAT will continue to have the same treatment for VAT purposes after 14 January 2013.

In addition, please note that the change in the standard VAT rate will not affect the reduced rates of 5% and 8% for the period 14 January 2013 - 12 January 2014. As from 13 January 2014, the reduced rate of 8% will increase to 9%. 

With the forthcoming increase of the standard VAT rate from 17% to 18%, please note that the transitional provisions of Article 55 of the VAT Law apply, based on which a taxable person selling goods or providing services has the choice of applying the old VAT rate (17%) or the new VAT rate (18%), but only for certain cases.

For more information, please contact us.