Cyprus: Temporary reduction of VAT rate for certain supplies of electricity
A temporary reduction of the rate of value added tax on electricity supplied to “vulnerable consumers” and to certain households
Temporary reduction of VAT rate for certain supplies of electricity
The Council of Ministers on 13 December 2021 approved measures providing a temporary reduction of the rate of value added tax (VAT) on electricity supplied to “vulnerable consumers” and to certain households. The rate reduction does not affect businesses.
Under these measures, the VAT rate on electricity supplied to vulnerable consumers is temporarily reduced to 5% (from 19%) for a six-month period beginning 1 November 2021 and the corresponding VAT rate for other households is reduced to 9% for a three-month period beginning 1 November 2021.
Read a December 2021 report prepared by the KPMG member firm in Cyprus
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