Below is a table outlining the VAT rates in Cyprus:
| Category | VAT Rate | Details |
|---|---|---|
| Standard VAT Rate | 19% | This rate applies to most goods and services, including retail sales, imports, and professional services. |
| Reduced VAT Rate (First Tier) | 9% | Applies to services like restaurant dining, hotel accommodations, and passenger transport. |
| Reduced VAT Rate (Second Tier) | 5% | Applies to essentials such as food, medicine, books, newspapers, and certain medical equipment. |
| Zero-Rated VAT | 0% | Applies to exports, international air/sea transport, and certain goods related to ships and aircraft. |
| Exempt from VAT | N/A | Applies to specific services like education, financial services, insurance, and cultural services. |
Additional Notes:
- VAT Registration: Businesses with an annual turnover exceeding €15,600 are required to register for VAT in Cyprus.
- VAT Filing: VAT returns are typically filed on a quarterly basis, though some businesses may file monthly depending on their turnover.