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REMINDER: Cyprus raises VAT 1% to 19% on 13th Jan 2014

  • VAT
  • 13 January 2014 | Richard Asquith

REMINDER: Cyprus raises VAT 1% to 19% on 13th Jan 2014

Cyprus today, 13th January 2014, enacts a second 1% austerity VAT rise, raising the standard VAT rate to 19%.  The reduced VAT rate also rises from 8% to 9% today.  Cyprus started the financial crisis with a standard VAT rate of 15%, the lowest permitted by the European Union.

Cypriot austerity VAT rises

This increase was announced in 2012 in the midst of a Cyprus financial crisis when the country was at risk of defaulting on its sovereign debt.  It proposed raising Cypriot  VAT from 17% to 19% in two stages in 2013 and 2014.

Cyprus has already raised its VAT rate during the wider financial crisis.  It last increased its VAT rate from 15% to 17% on 1 March 2012.  The average EU VAT rate is over 21%.


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 is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.