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Value Added Tax (VAT)

Value Added Tax was introduced in Cyprus on 1st July 1992 and is imposed on the provision of goods and services as well as on the importation of goods into Cyprus.

 

VAT RATES

Standard rate applicable

(from 14/1/2013 until 12/1/14)

From 13/01/2014

18%

 

19% 

Standard rate (until 13/1/2013)

17%

Reduced rate

8%

Reduced rate

5%

Zero rate

0%

Turnover in excess of €15.600 during the preceding 12 months

OR

An expected turnover in excess of €15.600 within the next 30 days

As from 1st January 2010, an obligation for VAT registration arises for businesses engaged in the supply of intra-community services for which the recipient must account for VAT under the reverse charge provisions.

Additionally such obligation also arises for business that carry out an economic activity and receive services from outside Cyprus for which an obligation to account for Cyprus VAT under the reverse charge provision exists.

No registration threshold exists for either intra-community supply of services or from receipt of services from abroad.