Cyprus's VAT rates set to increaseThe 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:- Catering,
- 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.
All businesses in Cyprus affected by the changes of the standard VAT rate are obliged to physically take stock of their inventory by close of business 12th of January 2014.
On e-commerce applications, the standard (generally T1) and reduced rates need to be adjusted with date 13/01/2014.