The Cyprus Government has temporarily reduced the VAT rate that applies to the tourism, restaurant and transport industries from 9% to 5%.
The Council of Ministers Under has decided on 23 June 2020, under the articles 18 and 18A of the Cyprus VAT Laws issued decree ΚΔΠ 268/2020, that for the period between 1 July 2020 and 10 January 2021, both inclusive, the VAT rate of 9% is reduced to 5% for the below categories:
- Hotel, tourist and other similar accommodation;
- Restaurant and catering services;
- Transport of passengers and their accompanying luggage within the Republic with a taxi or a bus.