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 the former VP Global Indirect Tax at Avalara
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