Value Added Tax is imposed on the provision of goods and services in Cyprus as well as on the importation of goods into Cyprus.

Rates

Standard Rate	15%
Reduced Rate	8%
Reduced Rate	5%
Zero Rate	0%

Standard rate
The standard rate applies to any provision of goods and services in Cyprus not subject to the zero rate, the reduced rate or is exempt.

Reduced rate
The reduced rate applies to hotel services, the provision of food in the course of catering, fertilisers, animal food and pesticides, magazines and books etc.

Zero rate
Zero rated supplies include the provision of food supplies, medicines etc.

Exemptions
Exempt supplies include rental of immovable property, financial services, hospital and medical services, postal services, insurance services, disposal of immovable property etc.

Who is obliged to register
Every individual or company is obliged to register:
(a) at the end of any month, if the value of taxable supplies recorded in the last 12 months exceeds €15.600 or
(b) at any point in time the value of taxable supplies are expected to exceed €15.600 in the next 30 days.

Right of registration
Persons who trade, outside of Cyprus, in goods or services which would have been taxable if they were provided within Cyprus, group of companies and company divisions.

VAT returns and payment of VAT
Any registered person must submit to the VAT Commissioner a VAT return within 40 days from the end of any tax period and pay the VAT due.