Update On Reduced VAT Rates - Cyprus

Update in relation to the amending law (No. 3) of the VAT Law that entered into force on 21 July 2023. This amendment concerns the application of a reduced VAT rate of 3% and a zero rate to certain categories of goods and services.

What is the amendment about

A. The subheading of Article 18A is replaced by the phrase: 'Reduced rate of 9%' instead of 'Reduced rate of 8%' – Transactions of Schedule 12

B. Addition of Article 18B immediately after Article 18A

According to the provisions of the new Article 18B, any transaction falling under the Schedule Fifteen* (New Schedule – see point E below) as well as the corresponding acquisitions or imports of goods falling under the said Schedule, will be subject to the reduced rate of 3%