On 15 June, the Cypriot government proposed the introduction of a new super-reduced rate of 3% to support vulnerable people and boost culture.
This bill was approved by Parliament on 13 July 2023, with the addition of a change to the application of the 0% VAT rate to certain products used by people with disabilities.
3% super-reduced VAT rate: goods & services concerned
On the basis of the parameters defined for the applicability of the 3% VAT rate, we can list the following, among others:
- Books, newspapers or other printed matter supplied in physical, electronic or both formats. There is also the production of publications by non-profit organisations;
- Special lifting equipment for the disabled;
- Wheelchairs and other vehicles for the disabled;
- Orthopaedic products and appliances;
- Splints, hearing aids or any other device to compensate for a disability;
- Private sanitation;
- Waste treatment and recycling;
- First performance of a play, musical…
New classification of products subject to the 0% rate (instead of 5%)
Prior to the amendment, the following list of goods were subject to the 5% VAT rate. From now on, they will be taxable at 0%:
- Braille typewriters and electronic typewriters;
- Wheeled and other vehicles (including motorised) for the personal use of disabled people.
If you would like more information on this subject, please do not hesitate to contact our experts.
Source : Cypriot Ministry of Finance (in Greek)
