Cyprus: Reduced VAT rates for certain goods and services

An amendment to the VAT law introduced reduced VAT rates of 3% and 0% for certain goods and services.

An amendment to the VAT law introduced reduced VAT rates of 3% and 0% for certain goods an

An amendment to the value added tax (VAT) law was published in the official gazette on 21 July 2023, introducing reduced VAT rates of 3% and 0% for certain goods and services.

The new amendment aims to harmonize domestic law with EU Directive 2022/542 regarding VAT rates.

The supply of the following goods will be subject to 0%:

  • Braille typewriters, including any special electronic typewriters and new type embossing typewriters for people with disabilities
  • Wheelchair carriages and other vehicles that are intended exclusively for the personal use of people with disabilities

The supply of the following goods and services will be subject to 3%:

  • Books, newspapers, and magazines, including electronic publications and talking books for people with disabilities (reduced rate will not apply to advertising materials, publications consisting primarily of video or audio, and to non-profit organizations)
  • Special lifting devices for people with disabilities (e.g., stairs, lifts, hoists)
  • Wheelchair carriages and other vehicles for people with disabilities
  • Medical devices, including orthopedic articles and apparatus, prosthetic items, hearing aids, medical surgical belts, bandages and crutches, splints, braces and other articles and devices for fractures
  • Street cleaning, waste collection and waste treatment services, provided by non-governmental entities
  • Wastewater disposal and treatment and emptying of septic and industrial tanks
  • Admission to theatres, concerts, and similar cultural events and facilities
  • Considering amendments of VAT rates, we recommend proceeding with the adjustment of your accounting systems and invoicing procedures for timely application of the updated VAT rates

Read a July 2023 report prepared by the KPMG member firm in Cyprus



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