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July 19, 2023

Cyprus introduces 3% VAT rate and adds goods to 0% VAT list

  • Cyprus has enacted a new 3% value added tax (VAT) and added items to the list of those eligible for 0% VAT.
  • Many of the new goods listed assist individuals with disabilities.
  • Affected businesses should become familiar with these changes.

On Thursday 13 July 2023, the Cyprus Parliament enacted a super-reduced 3% value added tax (VAT) rate and extended the application of 0% VAT for goods used by people with disabilities.

0% VAT applicable (preamendment VAT for products at 5%)

Goods to which 0% VAT now applies include:

  • Typewriters with Braille characters and special electronic typewriters (e.g., electronic pocket communication devices) (C.N. 84.69)1 and new type embossing typewriters (C.N. 84 72 90 80) for people with disabilities
  • Wheeled and other vehicles for the disabled, including those with motor/otherwise within C.N. 87.13 exclusively for personal use by people with disabilities

Goods/services subject to new 3% VAT

Goods subject the 3% VAT include:

  • Books, newspapers and periodicals provided in either physical or electronic form or both (including brochures, prospectuses and similar printed material, children's illustrated books and tracing — coloring books, printed or handwritten musical scores, hydrographic charts), excluding publications intended mainly for advertising purposes and publications consisting wholly or mainly of video or audio content music; production of publications by nonprofit organizations and services related to their production (C.N. 49.01 — 49.05)
  • Books for people with disabilities (C.N. 85.23)
  • Special lifting devices (stairs, lifts, similar lifting equipment) for people with disabilities
  • Wheelchairs and other vehicles for people with disabilities
  • Orthopedic items and appliances including medical surgical belts or bandages and crutches
  • Splints and other devices/items for fractures, prosthetic items, devices and hearing aids for the deaf, and other devices that are hand-held, carried by persons, or inserted into the human body for the purpose of filling a deficiency or treating a disability; parts and accessories for these goods are excluded

Services subject to 3% VAT include:

  • Street cleaning, sewage and refuse collection performed by private entities; services provided by state, local authorities and public law bodies are excluded
  • Waste treatment or waste recycling
  • Debut performance of theatrical, musical, dance or classical plays

Next steps for businesses

Businesses trading in goods and services affected by this legislation should consider wider obligations, including aspects around stock taking (i.e., counting inventory) and tax points (i.e., time of supply) before implementing new VAT rates.


For additional information with respect to this Alert, please contact the following:

Ernst & Young Cyprus Ltd.

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor


1 "C.N." refers to the European Commission's goods nomenclature — the "Combined Nomenclature." See,


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