As of the 10th of January 2011, in order to comply with EU obligations, the zero V.A.T. rate currently applied to a broad range of food, medicines and vaccines sold in Cyrpus will be abolished.
Instead, a 5% V.A.T. rate will be applied to all food and beverage sales. Likewise a 5% rate will also apply to medicine and vaccine sales.
With regards to food and beverage deliveries, excluding alcoholic drinks, beer, wine and soft drinks, will attract a higher rate of 15% VAT.
The 15% rate still represents the lowest rate in the EU.
The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.
