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Cyprus VAT Guide 2026 (ΦΠΑ)

Cyprus VAT (Φόρος Προστιθέμενης Αξίας — ΦΠΑ) applies at a standard rate of 19%, with reduced rates of 9% for hotels, restaurants, and passenger transport, and 5% for basic goods including essential food items, medical supplies, and children's products. Exports are zero-rated. The threshold for mandatory VAT registration is EUR 15,600 in annual turnover.

VAT in Cyprus is administered by the Tax Department of Cyprus (Φορολογικό Τμήμα) under the Ministry of Finance. Cyprus adopted VAT upon joining the EU in 2004 and follows the EU VAT Directive. For related guidance, see our Corporate Tax Guide → and Cross-Border Guide →.

VAT Rates 2026

  • Standard rate: 19% — applies to most goods and services
  • Reduced rate 9% — hotels, accommodation, restaurants, catering, passenger transport, and certain cultural services
  • Reduced rate 5% — basic foodstuffs, essential medical products, children's car seats, and certain welfare-related goods
  • Zero rate (0%) — exports of goods outside the EU, international transport, and supplies to certain international organisations
  • Exempt — insurance, financial services (including lending, deposit-taking, insurance), education, healthcare, and postal services

VAT Registration Threshold

Cyprus has a relatively low VAT registration threshold of EUR 15,600 in annual taxable turnover. Businesses exceeding this threshold must register for VAT regardless of legal form. Non-resident businesses making taxable supplies in Cyprus must register from the first supply. Voluntary registration is available for businesses below the threshold, which can be beneficial for reclaiming input VAT.

VIES Reporting

As an EU member state, Cyprus participates in the VIES (VAT Information Exchange System). Businesses making intra-Community supplies of goods to VAT-registered customers in other EU member states must:

  • Verify the customer's VAT number via VIES
  • Issue invoices with a valid VAT number and the customer's VAT number
  • Submit EC Sales Lists (Intrastat) on a quarterly or monthly basis
  • File VAT returns quarterly, showing intra-Community supplies as exempt with credit

VAT Compliance

  • VAT returns are filed quarterly, within 40 days after the end of the quarter
  • Large taxpayers (turnover over EUR 1 million) may be required to file monthly
  • The tax year aligns with the calendar year
  • Penalties for late filing: EUR 100 plus EUR 50 per month of delay
  • Interest on late payments: applicable at the statutory rate