The rates at a glance
| Rate | Typical supplies |
|---|---|
| 19% | Most goods and services. This is the standard rate. |
| 9% | Hotel accommodation, restaurant and catering services, certain local passenger transport, and certain supplies of electricity. |
| 5% | Many foodstuffs, pharmaceutical products and a range of other goods and services set out in the law. |
| 3% | Books, newspapers and magazines, in print or electronic form, goods for people with special needs, certain cultural performances, and waste collection and sewage treatment services. |
| 0% | Exports outside the EU, supplies of goods to VAT-registered businesses in other EU countries, and certain essential goods under a temporary measure. |
The standard rate: 19%
Anything that is not covered by a reduced rate, the zero rate or an exemption is charged at 19%. If you are unsure which rate applies, 19% is the starting point, and a reduced rate applies only where the law says so.
The reduced rates: 9%, 5% and 3%
The 9% rate mainly covers hospitality: hotel stays, restaurant and catering services, and certain passenger transport within Cyprus.
The 5% rate covers many foodstuffs and pharmaceutical products, among other supplies listed in the law.
The 3% rate was introduced in 2023. It covers books, newspapers and magazines, in print or electronic form, goods for people with special needs, certain cultural performances, and waste collection and sewage treatment services.
The zero rate and temporary measures
Exports outside the EU and supplies of goods to VAT-registered businesses in other EU countries are zero-rated. Zero-rated sales still count in the VAT return, and the VAT on related purchases can be claimed back.
Cyprus has also applied a temporary 0% rate to certain essential goods, such as some baby and hygiene products and basic foods, extended to 31 December 2026. Check the current list with the Tax Department before you apply it.
Exempt is not the same as zero-rated
Some supplies, such as most financial and insurance services and certain medical and educational services, are exempt. No VAT is charged, but unlike zero-rated sales, the VAT on related purchases usually cannot be claimed back.
When you must register
A business must register for VAT when its taxable sales in the last 12 months exceed €15,600, or are expected to exceed €15,600 in the next 30 days. Registration must be made within 30 days.
A business below the threshold can register voluntarily, for example to claim back VAT on its costs. Separate rules apply to businesses that receive services from abroad or buy goods from other EU countries.
This guide is general information, checked against official sources in October 2026. It is not tax advice. Rules change, so confirm with the Tax Department or your adviser before you act.
Let DecaBooks do this for you
VAT returnsThe VAT-4 return built from your books and checked before you file.