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Cyprus: Guidance on VAT treatment of medical care

Consolidation of prior relevant guidance and further clarifications on application of VAT rules

September 23, 2026

The Cyprus Tax Department on August 26, 2026, issued Circular 4/2026, providing consolidated guidance on the VAT treatment of transactions relating to medical care.

The circular clarifies the distinction between VAT-exempt medical care services, services subject to the reduced VAT rate of 5%, and services subject to the standard VAT rate of 19%.

While the circular does not introduce material changes to the application of the VAT exemption, it consolidates prior relevant guidance and provides further clarifications aimed at promoting the consistent and uniform application of the VAT rules.

Read a September 2026 report prepared by the KPMG member firm in Cyprus

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