Cyprus: Reduced VAT rate for photovoltaic systems
Effective October 16, 2026
Decree Κ.Δ.Π. 363/2026 provides for application of the reduced VAT rate of 9% to the supply of photovoltaic systems to residential customers, as defined in the Electricity Market Regulation Law, for the purpose of self-consumption of electricity in their residences—effective October 16, 2026.
Pursuant to Article 55 of the VAT Law, the supplier may opt to apply the new VAT rate of 9%, provided that the goods or services are supplied to the recipient after the date on which the change in VAT rate takes effect, even if payment has been received or a VAT invoice has been issued before that date.
Read an October 2026 report prepared by the KPMG member firm in Cyprus