Indirect tax ebook - Cyprus

Tax Rates

In Cyprus the following categories of VAT rates are applicable

• Standard rate 15% - all goods and services standard rated unless defined to be reduced rated or exempted.” 
  
• Reduced rate 8%
  The following are taxable at the reduced VAT rate of 8%:
1. transport of passengers and their accompanying luggage within Cyprus, with urban, suburban and rural taxis as well as with tour and suburban buses.
2. the services of restaurants and the supply of food in the course of catering except the supply of alcoholic beverages wine and beer, which is chargeable at 15%, as well as on the provision of accommodation in the hotel sector or in sectors with a similar character. 
3. the transport of passengers and their accompanying luggage by sea, within Cyprus.
   
   
• Lower reduced rate 5%
  The following are taxable at the reduced VAT rate of 5%:
  
  the supply of coffins, services supplied by undertakers, services of writers, artists, on the supply of fertilizers, foodstuff for animal, live animals, seeds, non bottled water, newspapers, books, periodicals, certain products for persons with special need, ice cream, certain types of nuts (salted etc), transport of passengers and their accompanying luggage with urban and rural buses, the letting of camping sites and caravan parks.
  
  hair salon services, repair and maintenance of private households (based on specific condition)animal feedstuff, confectionary product, bottled water, Juices, pharmaceutical products that were previously taxed at the standard rate of 15%, entry fees to theatres, cinemas at sports events, luna parks and similar cultural events.
  
  
• Zero rate supplies
  The following supplies of goods or services are zero-rated: 
1. the supply, hiring and repair of sea-going vessels and aircrafts, including the supply of services to meet the direct needs of sea-going vessels, 
2. the supply of goods entered into customs regime, 
3. the supply of medicines and food – except the supply of food in the course of catering. 
4. supply of goods that have been exported or supplied to a registered person in another member state.
   
   
• Exempt supplies
  No VAT is charged on supplies of goods or services which are exempted under the VAT legislation; leasing or letting of immovable property, the supply of immovable property with the exception of buildings or parts of buildings and the land on which they stand if the application for a building permit was submitted after the 1st May, 2004, financial services, lotteries, medical care, social welfare, education, sports, cultural services, insurance transactions etc. 
  
   

• Introduction
• Scope
• Registration
• Tax rates
• Reporting & filing
• General tax application/Time of supply