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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.