ARTICLE · 31 JULY 2023

New VAT Rates As From 21 July 2023

KPMG in Cyprus

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On 21 July 2023, an amendment to the Value Added Tax (VAT) law was published in the Official Gazette of the Republic, introducing reduced VAT rates of 3% and 0% for certain goods and services.

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Michael C. Grekas

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On 21 July 2023, an amendment to the Value Added Tax (VAT) law was published in the Official Gazette of the Republic, introducing reduced VAT rates of 3% and 0% for certain goods and services. The new amendment, being one of new social policy measures (another amendment has recently implemented temporary application of 0% VAT rate for certain goods), aims to harmonize CY VAT Act with EU Directive 2022/542 regarding VAT rates:

The supply of the following goods will be subject to 0%:

Braille typewriters, including anyspecial electronic typewriters and new type embossing typewriters for people with disabilities.
Wheelchair carriages and other vehicles that are intended exclusively for the personal use of people with disabilities.

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