VAT Rates in Cyprus

Value Added Tax, known as VAT, is applicable in Cyprus for any type of company providing goods or services in Cyprus. Various VAT rates may apply according to the type of product or service. 

To find the applicable VAT rate for the supply of a particular good or service, please refer to the below table:


Standard Rate 19%

Applies to all the taxable goods and services in Cyprus with the exception of those that are subject to the reduced rate or to the zero rate.

Reduced Rate 9%

Transport of passengers and their accompanying luggage within Cyprus with urban, suburban and rural taxis as well as with tour and suburban buses;

Services of restaurants;

Supply of food in the course of catering;

Supply of alcoholic beverages, wine and beer;

Provision of accommodation in the hotel sector;

Transport of passengers and of their accompanying luggage by sea;

Reduced Rate 5%

Services supplied by undertakers;

Services of writers, artists etc.;

Supply of fertilisers, foodstuff for animals, live animals, seeds, non-bottled water, newspapers, books, periodicals;

Supply of coffins;

Certain products for persons with special needs;

Ice cream;

Types of nuts;

Transport of passengers and their accompanying luggage with urban and rural buses;

Letting of camping sites and caravan parks;

Hair salon services;

Repair and maintenance of private households (provided that certain conditions are met);

Animal feedstuff;

Confectionary products;

Bottled water, Juices;

Pharmaceutical products;

Entry fees to theatres, cinemas, sports events, luna parks and similar cultural events;

Zero Rate 0%


Supply of services to meet the direct needs of sea-going vessels;

Supply, hiring and repair of sea-going vessels and aircrafts;

Supply of goods entered into customs regime;

Supply of medicines and food – except the supply of food in the course of catering goods have been exported or supplied to a registered person in another member state;

Supplies of goods or services which are exempted under the VAT legislation;

Leasing or letting of immovable property;

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 01/05/2004;

Financial Services;


Medical care;

Social welfare;



Cultural Services;

Insurance transactions etc.


For specific legal and/or tax advice on VAT matters, including VAT registration in Cyprus, please contact a tax specialist.