Reduction in VAT rate applicable to hospitality and transportation services

One of the measures decided by the Cyprus Government to deal with the severe effects of the COVID-19 pandemic on the economy of the country relates to the reduction of the VAT rate applicable to the hotel and related accommodation, catering and transportation services from 9% to 5%. The reduction will be applicable from 1 July 2020 to 10 January 2021.

The reduction concerns the following services:

  • Accommodation in hotels, tourist accommodation and similar services, including the provision of holiday accommodation.
  • Restaurant and catering services.
  • Transport of passengers and their accompanying luggage inside the Republic of Cyprus by urban, intercity, and rural taxis and by tourist and  intercity buses.

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