Cypriot VAT rates and VAT compliance

Cypriot VAT rates

Whilst Cyprus follows the EU rules on VAT compliance, it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Cyprus must charge the appropriate VAT rate, and collect the tax for onward payment to the Cyprus tax authorities through a VAT filling see Cyprus VAT returns briefing.

Once registered for Cyprus VAT, you will have to start following the local rules in a number of aspects. This includes:
  • Issuing invoices with the disclosure details outlined in the Cyprus VAT Act.
  • Electronic invoices with proper signature, authenticity and agreement by the recipient.
  • Maintenance of accounts of record, which must be held for at least 6 years.
  • Correct invoicing of customers for goods or services in accordance with the Cyprus time of supply VAT rules.
  • Treatment of credit notes and other corrections.
  • Application of foreign currency translation rates.

The current rates are:

Cyprus Covid-19 VAT rate cuts

Cyprus has temporarily cut VAT to help support businesses and consumers during the Coronavirus pandemic crisis.

SupplyOld rateNew rateImplementation dateEnd date
Hotels, accommodation, hospitality, restaurants, cafes and public transport9%5%01 Jul 202010 Jan 2021

Cyprus VAT rates

RateTypeWhich goods or services
19%StandardAll other taxable goods and services; land transactions for business use
9%ReducedDomestic road passenger transport; domestic passenger transport by sea; hotel accommodation; restaurants and catering services; cafes
5%ReducedCertain foodstuffs; non-alcoholic beverages; water supplies; pharmaceutical products; medical equipment for disabled persons; children’s car seats; certain passenger transport; books (excluding e-books); newspapers and periodicals; admission to cultural events and amusement parks; writers and composers; renovation and repair of private dwellings; some agricultural supplies; admission to sports events; use of sporting facilities; domestic waste collection; hairdressing; some undertaker and cremation services; LPG (in cylinders); take away food (excluding soft drinks and alcoholic beverages); social housing; cut flowers for food production; waste and waste water treatment; works of art, collectors items and antiques; certain services on intracommunity flights
0%ZeroIntra-community and international transport; goods purchased on international flights

What is the tax point for Cypriot VAT

The tax point or time of supply rules in Cyprus determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).

For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.

Need help with your Cypriot VAT compliance?

Researching Cypriot VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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