Cyprus has reduced the VAT on domestic electricity to 5% from 1 May 2026 to 31 March 2027 and zero‑rated meat, poultry and fish from 1 April to 30 September 2026. Motor fuel excise duty will fall by 8.33 cents per litre between April and June 2026, and the planned Green Tax has been cancelled. The measures are part of a €200 m support package that also includes subsidies for hotels, airlines and farmers.
It will be 5% until 31 March 2027.
From 1 April to 30 September 2026.
By 8.33 cents per litre.
It was cancelled, removing an additional 9 cents per litre.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
VatCalc · 5 days ago
Northern Cyprus has temporarily reduced VAT on all fuel products to 0% under the 2025 VAT Rates (Amendment) Regulation, following a Council of Ministers decision published on 18 March 2025. The change covers unleaded petrol, diesel, kerosene, fuel oil and aviation fuel, and is accompanied by a cap on importer and dealer margins at 7.25 TL per litre to curb inflation driven by the Iran conflict.
Bloomberg Tax · 2 months ago
Cyprus has extended the zero percent VAT rate on a range of essential items until 31 December 2026. The extension, announced by the Cyprus Tax Department on 15 January 2026, covers baby milk, diapers, feminine hygiene products, and certain fresh fruits and vegetables.
HortiDaily · 2 months ago
Cyprus has extended a zero VAT rate on essential fresh produce until the end of 2026. The measure, announced by the Tax Department following a decree dated 21 November 2025, applies from 1 January to 31 December 2026 and covers a specific list of vegetables and fruits. Businesses must comply with the decree’s provisions to qualify for the zero rate.
SPL · 2 months ago
Cyprus has extended deadlines for VAT, VIES, and the Special Taxi Scheme to 20 January 2026, allowing submissions and payments without penalties. Businesses must be aware of the new penalties that will apply after this date. The extension covers VAT returns for the period ending 30 November 2025, VIES returns for December 2025, and the flat‑rate scheme for urban taxis from 1 July to 31 December 2025.
Bloomberg Tax · 3 months ago
Cyprus Tax Agency extended the filing and payment deadline for certain VAT obligations to Jan. 20, 2026. The extension covers VAT returns for the period ended Nov. 30, 2025, VIES summary tables for December 2025, and flat‑rate declarations for the special urban taxi regime. Late filing may incur a 10% additional VAT and a €100 penalty.
AOL · about 3 hours ago
A Christian private school in Reading, England, closed after the UK government removed the VAT exemption on private school fees, imposing a 20% standard rate from 1 January 2025. The change, combined with rising business rates, made the school’s finances untenable, prompting its closure in March 2026.
