Cyprus's VAT rates set to increase
The standard VAT rate in Cyprus of 18% will increase to 19% as of the 13th of January 2014. The reduced VAT rate which is currently 8% is increaded to 9%.
The reduced VAT rate in Cyprus applies to those goods and services falling under schedule 12 of the Cyprus VAT legislation:
The main VAT reduced categories in Cyprus include:
- Passenger transport,
Goods or services that fall within the reduced rate of 5% and 0% will remain unaffected, these are included in schedules 5 and 6 of the Cyprus VAT legislation.
When selling products online (sometimes called as well 'distance sales') from one EU country to end-clients in other EU countries (B2C) the following
VAT ruels apply:
Depending on annual volume of online sales to a given country, different rules determine in which country the taxation will apply:
VAT will be charged
in the receiving EU country (where the goods are shipped to and located when the dispatch or transport to the customer ends for distance sales)
when the supplier's annual sales are above the threshold(14 Kb)applied
by the cust...