On the 13th July 2023, the Cypriot Parliament approved a bill introducing a new super-reduced VAT rate of 3% for certain goods and services to ease the cost of living and support culture. The bill also increases the application of the 0% VAT rate. 

The goods and services now subject to the new 3% VAT rate are the following:

• books, newspapers, magazines and similar products whether provided on a physical and/or electronic form and books for people with disabilities. The reduce tax rate excludes advertising material, publications consisting mainly of video or audio and publications by non-profit organizations;
• special lifting devices for people with disabilities;
• wheelchairs and other vehicles for people with disabilities (even if provided for use by hospitals and clinics);
• orthopaedics and medical devices;
• street cleaning, sewage and waste collection, provided by private entities;
• waste water disposal and treatment; and
• admission to debut performance of theatrical, musical, dance or classical plays.

The additional goods now subject to the 0% VAT rate are the following:
typewriters with Braille characters and special electronic typewriters; and
wheelchairs for people with disabilities exclusively for their personal use.

The above changes are effective from the 21st July 2023, the date when the related law was published in the Official Gazette of the Republic.

If you have any questions on the impact of the above changes on your business, please contact us here