What is the standard VAT rate in Cyprus?
Short answer
19% on most goods and services, with reduced rates of 9%, 5% and 3% for listed items and a zero rate for exports and some other supplies. The 3% rate is the newest, in force since 21 July 2023.
The Tax Department's current list: 9% for restaurant and catering services, hotel accommodation, passenger transport by taxi and bus, and care homes; 5% for most food and non-alcoholic drinks, water, medicines and vaccines, children's car seats, hairdressing, admission to shows and sports events, home renovation under conditions, and the purchase or construction of a main home with the Commissioner's approval; 3% for books, newspapers and periodicals, including electronic ones, mobility and hearing aids for people with disabilities, street cleaning and waste services not provided by local authorities, and sewage services.
The zero rate covers exports, the supply, repair and hire of sea-going ships and airline aircraft, and services for the direct needs of those ships.
Exempt supplies, such as most financial, insurance, medical and educational services, carry no VAT. Our audit partner can advise on which rate applies to your sales.
Sources
Information, not advice. This answer describes the published position as it stands on 15 October 2026. Requirements, fees and processing times set by the authorities change from time to time; the current position is confirmed before any work starts.
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