In December 1990, the Value Added Tax Law was introduced and came into effect on 1 July 1992. Under the law, VAT is levied on all goods produced or imported and all services rendered in Cyprus with certain exemptions. Items which are exempt include:
The law provides for two tax rates, 0% and 8%. Zero rated goods and services include, in addition to exported goods:
The contents of this article are intended to provide a general guide to the subject matter. Specialist advice should be obtained before any action is taken.
- Supply and letting of immovable property
- Financial services
- Betting
- Hospital and medical care
- Postal services
- Education
- Insurance
- Certain sporting, cultural and welfare services.
The law provides for two tax rates, 0% and 8%. Zero rated goods and services include, in addition to exported goods:
The persons liable to register for VAT are those whose turnover exceeds C£12.000 p.a.
- Certain services connected with imports, exports and shipping
- Air and sea tickets for travel abroad
- Food and water (with certain exceptions, notably catering)
- Medicines
- Newspapers, periodicals and books
- Bus services, urban and rural
- Gas in cylinders
- Fertilisers and agricultural machinery
- Children's clothing and footwear.
The contents of this article are intended to provide a general guide to the subject matter. Specialist advice should be obtained before any action is taken.
