What is the VAT rate in Cyprus? 

Cyprus main VAT rate is 19% close to other European countries albeit slightly lower. 

Cyprus also has the following VAT rates: 

• 9% reduced for hotel accommodation, transportation, restaurants amongst others 

• 5% reduced for certain goods such as books, newspapers and magazines, hairdressers 

• 0% for exports of goods, aircraft repairs, direct services to sea vessels and aircrafts etc. 

• Exempt / outside the scope such as rental income for non-business purposes, insurance, dividends etc. 

Do not take VAT Lightly!

Always consult with your accountants or VAT experts as VAT is the most difficult area of tax which changes rather frequently. This is because Cyprus is an EU member which has to comply with the EU VAT directives and regulations, which tend to change. 

Always bear in mind that different type of services has totally different VAT application (something that applies in all EU member states) therefore knowledge of VAT is a must before entering into business or before kicking off your start up. 

Finhub has a range of VAT experts who can consult you. 

More about Cyprus VAT visit the Cyprus Government Tax Office website with reference to “Indirect Tax” which means VAT