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Cyprus introduces 3% reduced VAT rate

Reduced rate of 3% under new EU freedoms on reduced VAT rates

Update: this new rate was gazetted on 23 July 2023, and so is now in effect.

Cyprus’ Council of Ministers has agreed to introduce a new 3% reduced VAT rate under the new EU reduced VAT rate freedoms. The freedoms remove the restricted list supplies for reduced rates of Annex III of the EU VAT Direct. Member states will now be free to introduce more reduced rates, including rates below the current 5% lower limit.

The current standard rate is 19%, with two reduced rates of 9% and 5%.

Read more in our Cyprus VAT country guide.

The supplies to enjoy the new 3% rate in Cyprus include:

  • books, magazines, and similar products, whether provided on a physical basis or in electronic form;
  • stairs, lifts, and wheelchairs for persons with disabilities;
  • orthopedic devices;
  • street cleaning and dog collection services;
  • waste water disposal and treatment; and
  • entry to the debut of theatrical, musical, dance or classical performances.


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