VATLive > Blog > Cyprus > Cyprus abandons VAT rate to 17% on coronavirus concerns

Cyprus abandons COVID-19 VAT cut

  • Mar 20, 2020 | Richard Asquith

Cyprus has abandoned an intial coronavirus crisis plan to cut in its standard VAT rate from 19% to 17% until May 2020. It will instead resort to tax payment delays.

In addition, there will be a two-month VAT payments holiday for businesses with a turnover below €1million per annum. After this time, a repayment schedule may be agreed for phased payments until November 2020. The fiscal boost is aimed at providing cashflow relief to businesses during the coronavirus COVID-19 outbreak.

Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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