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Cyprus: Reduced VAT rate for photovoltaic systems

Effective October 16, 2026

October 23, 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

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