Compliance Alert - Changes in VAT include the introduction of 3% VAT rate

Currently, Cyprus has 19% (standard), 9% and 5% (reduced), and 0% VAT rates. However, on 13 July 2023, the official gazette published changes in VAT which included: an introduction of a 3% VAT rate and added new items to the 0% VAT list.

The supply of the following goods will be subject to 0%:

• Braille typewriters, including any special electronic typewriters and new type embossing typewriters for people with disabilities
• Wheelchair carriages and other vehicles that are intended exclusively for the personal use of people with disabilities

The supply of the following goods and services will be subject to 3%:

• Books, newspapers, and magazines, including electronic publications and talking books for people with disabilities (reduced rate will not apply to advertising materials, publications consisting primarily of video or audio, and to non-profit organizations)
• Special lifting devices for people with disabilities (e.g., stairs, lifts, hoists)
• Wheelchair carriages and other vehicles for people with disabilities
• Medical devices, including orthopaedic articles and apparatus, prosthetic items, hearing aids, medical surgical belts, bandages and crutches, splints, braces, and other articles and devices for fractures
• Street cleaning, waste collection, and waste treatment services, provided by non-governmental entities
• Wastewater disposal and treatment and emptying of septic and industrial tanks
• Admission to theatres, concerts, and similar cultural events and facilities

This information can be found in the official gazette through this link (in Greek).