Cyprus: Guidance on VAT treatment of admissions to events
Reduced rates of 9%, 5%, and 3% applicable to catering, performances, and premieres, respectively
The Cyprus Tax Department in October 2025 issued Circular 6/2025, providing clarifications on the value added tax (VAT) treatment of admission to various events, with a focus on cases when admission is combined with restaurant and catering services.
The circular aims to ensure consistent VAT application across cultural, entertainment, and hospitality activities. It outlines the applicable VAT rates of 9%, 5%, and 3%, as well as VAT exemptions for certain cultural supplies. The circular provides illustrative examples to help determine the correct VAT rate depending on the nature of the event and the composition of the services offered.
- When admission includes catering or restaurant services, the transaction is considered a single composite supply subject to a 9% VAT rate. The main supply determines the applicable VAT rate, with 5% for performances and 9% for catering.
- The reduced VAT rate of 5% applies to admission rights for theatrical, musical, or artistic performances, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions, and similar venues. Admission to artistic events in private venues without catering is also subject to 5% VAT.
- A reduced VAT rate of 3% applies to premieres of theatrical, musical, choreographic, or classical works. If the first performance in Cyprus is not the actual premiere, a 5% VAT rate applies.
Cultural services and related goods supplied by public law bodies or non-profit organizations are exempt from VAT, provided the exemption does not distort competition.
For more information, contact a KPMG tax professional in Cyprus:
Phanos Georgiou | phanos.georgiou@kpmg.com.cy