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Measure Name
Date when measure came into force
VAT rate changes 2012/03/01
VAT rate increase 2013/01/14
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Generic Tax Name VAT
Tax name in the national language Φόρος Προστιθέμενης Αξίας
Tax name in English Vallue added tax
Member State CY-Cyprus
Tax in force since 1992/07/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

The Value Added Tax Laws of 2000 to 2011.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments
 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

None



Comments

The community acquis is suspended in the Territory of the Republic of Cyprus not under the effective control of the government of Cyprus.

 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments

The VAT Legislation provides for a special scheme for taxis and special retails schemes.

Special Scheme for urban taxis- Any person who is in possession of no more than two urban taxi licences, may register in the special scheme for taxis instead of accounting for VAT under the normal VAT scheme. Under the special scheme the taxable person does not submit tax returns, and has no right of deduction of input tax. The taxable person pays VAT in two instalments per year, which have been determined according to economic data.

Retail Schemes - Under these schemes the method of calculation of the taxable value and the output tax of supplies of goods or services deviates from the general rules. Additionally, special arrangements are provided concerning the books and records that the retailers must keep. The use of a scheme by retailers is optional.


Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 15,600.00  EUR/Natcur
Comments
  • Turnover less than €15,600
  • Flat rate scheme for taxi drivers with maximum two licences
  • Retailers of goods with turnover less than €70,000

Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
5.00 %
Flat rate compensation percentage for forestry:
5.00 %
Flat rate compensation percentage for fisheries:
5.00 %
Comments

There is a special scheme on the following





Comments

Special derogations to continue to tax (annex X)




Comments

No special derogations are applied.


Special derogations to continue to exempt (annex X)













Comments


Comments

Taxable person is every person, naturalor legal, resident in the Republic or abroad, who carries on a business and has registered as such in the VAT Register or  is liable to be registered according to the provisions of the VAT legislation.

The term “business” has a very broad sense and means any economic activity carried out in an independent way regardless of the purpose or results of such activity. The term “business” includes any trade, profession or vocation.

In addition the VAT legislation provides that Governmental Authorities, Local Authorities and Public Authorities are not deemed to be taxable persons for the supplies of goods or services made by them in carrying out their mission. There are, however, certain supplies explicitly defined in the legislation, for which the aforementioned persons are considered taxable persons.

 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments

The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments


Comments

VAT is charged:

  • on every taxable supply of goods or services,  that is on every supply of goods or services made within the Republic, by a taxable person in the course or furtherance of any business carried on by him
  • on importation of goods from outside the European Community and
  • intracommunity acquisitions from other member states

 

The basis of assessment is the value of the taxable supply, excluding VAT.

 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

 


Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

None



Comments

Deductions

A taxable person may deduct as input tax, the VAT on expenditure which is attributed to the taxable transactions carried out. No right of deduction of tax is allowed if the expenditure involved concerns:

  • vehicles up to nine seats not intended for resale
  • receptions and entertainment for others than the employees of the business and accommodation expenses for the directors of a company.

 

Exemptions

Under the VAT legislation various transactions are exempt from VAT. All exempt transactions are enumerated in the Seventh and Eight Schedule of the Value Added Tax Laws of 2000 to 2012. The main exemptions are:

  • the supply of services by the public postal services and the supply of goods incidental thereto
  • hospital and medical care by public and private hospitals, duly registered under the relevant law of the Republic of Cyprus
  • the supply of services and of goods closely linked to the protection of children and young people by non profit making organizations or by nurseries registered under the relevant law
  • educational services in all degrees of education, vocational training, retraining including the supply of services and of goods closely related thereto provided by public schools, private schools duly registered under the relevant law of the Republic of Cyprus, conservatories and music schools, examination centres.
  • tuition given privately by teachers and covering school or university education
  • supply of services and goods closely linked thereto for the benefit of their members in return for a subscription fixed in accordance with their rules by non-profit making organizations with aims of a political, trade-union, religious, patriotic, philosophical, philanthropic or civil nature, provided that this exemption is not likely to cause distortion of competition.
  • insurance and reinsurance transactions, including related services, performed by
  • insurance agents, brokers and brokers agents.
  • financial services
  • the supply of lotteries, the placing of bets for horse racing and football games, acceptance of bets and other games of chance
 
Rate(s) Structure
Standard VAT rate Rate: 19.00 %
Comments

Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 5.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments


Reduced rate 2

(article 98 of Directive - Annex III of Directive)
Rate: 8.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments


Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:No

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:No


Comments

Cyprus applied the reduced rate of 5%on the supply of liquid petroleum gas (LPG) in Cylinders.

 
Tax due date

The VAT is due on the tenth day following the month  the tax period of the taxable person ends.

 
Tax collector

Taxable persons are required for each tax period, to pay the difference between output tax (tax on the supplies of goods and services made by the business) and input tax (tax on the purchases of goods and services by the business)

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211a

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,577.50 EUR 8.10
2011 1,516.90 EUR 7.76
2010 1,597.40 EUR 8.36
2009 1,545.60 EUR 8.36
2008 1,816.20 EUR 9.65
2007 1,620.40 EUR 9.28
2006 1,395.90 EUR 8.65
2005 1,224.00 EUR 8.19
2004 1,047.30 EUR 7.56
2003 912.30 EUR 7.13
2002 723.20 EUR 6.02
2001 606.10 EUR 5.25
2000 532.20 EUR 4.95

Comments