How vat / sales tax works in Cyprus
Cyprus VAT defaults to 19%, with 9% on restaurants, hotels, passenger transport, and renovations and 5% on basic food, books, medicines, and cultural services.
Registration follows EUR 15,600 of taxable turnover in twelve months, with quarterly returns standard and monthly filing for larger traders.
Exports zero-rate, financial, health, and education supplies are largely exempt, and EU distance sellers route through OSS past the union threshold.
Tax rates at a glance
- Standard VAT
- 19%
- Reduced VAT
- 9% / 5%
- Hotel and food
- 9%
- Books and medicines
- 5%
- Exports
- 0%
- Registration line
- EUR 15,600
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsHospitality operators
Watch out for
- Mixed hospitality supplies split 9% food and stays against 19% alcohol and extras, so single-rate invoicing fails review.
- Exempt finance and property supplies block input recovery, which reprices holding and fund structures against taxable operations.
- The EUR 15,600 line is low enough to catch testing-phase sellers, with backdated liability to the crossing point.
- Immovable-property VAT rules carry elections and grandfathering that conveyancers must confirm per transaction, not per template.
Frequently asked questions
What is the VAT rate in Cyprus?
Cyprus applies 19% standard VAT in 2026, with 9% for restaurants, hotels, and transport and 5% for basic food, books, and medicines.
When must a Cyprus business register for VAT?
Past EUR 15,600 of taxable turnover in twelve months, with quarterly returns standard. Voluntary registration suits input-heavy starters.
How does Cyprus handle EU distance sales?
B2C distance sales past the EU-wide threshold tax in the destination country through OSS, rather than through Cypriot registration.