What is VAT (Cyprus)?
Cypriot VAT has a 19% standard rate, reduced rates of 9% and 5%, a 0% zero rate and a registration threshold of €15,600 of taxable turnover.
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Current Rate (Quarterly VAT periods)
19% standard, 9% reduced, 5% reduced, 0% zero rate. A narrow 3% list exists
Example
A Cypriot consultancy charges €1,000 net for services. At 19%, the VAT charged is €190. The VAT return for the quarter ending 31 March is paid by 10 May.
How VAT (Cyprus) works in Cyprus
Registration is compulsory when taxable turnover exceeds €15,600 in the preceding 12 months, or is expected to exceed it in the next 30 days. The threshold for intra-EU acquisitions is €10,251.61. Voluntary registration below the threshold is allowed.
The 9% rate covers items such as restaurant and catering services, accommodation and domestic passenger transport. The 5% rate covers items such as foodstuffs, pharmaceuticals, books and entry to events. Zero rate applies to exports, intra-EU supplies and international transport.
Returns are quarterly on form TD 1004, with payment due by the 10th day of the second month after the quarter. VIES statements for intra-EU supplies are monthly.
Related terms
The TIC is the Cypriot tax identifier for individuals and companies. It has 8 digits followed by one capital check letter, and the VAT number is the TIC with a CY prefix.
The TD4 is the annual corporate income tax return for Cypriot companies. It is due 15 months after the tax year end and filed electronically.
Corporate income tax is charged on the worldwide taxable profit of Cyprus tax-resident companies. The rate is 15% from 1 January 2026, up from 12.5% for tax years up to and including 2025.
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