The VAT rate in Cyprus will be raised to 19% – Investigative Due Diligence

The VAT rate of 19%, which is charged on the supply of goods or services, will come into effect on the 13/01/2014. 

The reduced rate of 5% remains unchanged for food, medicines, books, leaflets and printed materials, hairdressing services and renovation and repairing of private houses. 

The reduced rate VAT of 8% will increase to 9%, affecting restaurant and catering services, hotel accomodation, busses and taxis for the transportation fo passengers and their luggage and Local transportation of passengers and their luggage by the sea.