General information
Cyprus has announced a change to its value-added tax (VAT) schedule, lowering the reduced VAT rate on certain electricity supplies.
According to Decree No. K.D.P. 167/2026, published in the Official Gazette on March 27, the VAT rate for electricity supplied to private residences, public assistance recipients, and thermal energy storage systems under the domestic use tariff will drop from 8 per cent to 5 per cent.
The new rate will apply from May 1, 2026, until March 31, 2027.
Other news from Cyprus
New webinar was uploaded: Recorded webinar: Evolution of Fiscalization:From fiscal printers to real-time data platforms
Fiscalization has transformed from a compliance tool reliant on hardware to dynamic, software-driven platforms linking businesses and tax authorities. The webinar was presented by Dušan Bučevac, Sales Manager at Fiscal Solutions, who covered crucial fiscalization milestones and explained how real-time data has reshaped compliance, transparency, and business decision-making. Read more
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Cyprus
Author: Nikolina Basić
Cyprus has introduced a temporary 0% VAT rate on fresh, chilled, and frozen meat and fish from 6 April to 30 September 2026, under Decree K.D.P. 168/2026, as part of efforts to reduce food costs. Processed products such as sausages, burgers, and prepared fish remain subject to the reduced 5% VAT rate. Cyprus has introduced a temporary zero rate of value-added tax (VAT) on supplies of meat and fish... Read more
Is e-invoicing implemented in Cyprus?
Cyprus
Author: Nikolina Basić
E-invoicing in Cyprus is partially implemented: it is mandatory for public authorities to receive electronic invoices in B2G transactions under Law 89(I)/2019, while B2B e-invoicing remains voluntary and based on mutual agreement. Businesses can use channels such as PEPPOL, the Ariadni platform, or third-party providers, with broader mandatory requirements expected in the future under the EU ViDA... Read more
Fiscalization in Cyprus: definition of the fiscal electronic mechanism for tax control
Cyprus
Author: Nikolina Basić
Cyprus has defined fiscalization around Electronic Tax Registers / Fiscal Electronic Mechanisms, which issue and securely store tax documents in tamper-proof fiscal memory connected to POS or computer systems, ensuring transparent transaction recording and effective tax audits. The Ministry of Finance in Cyprus has outlined the role of fiscal devices, known as Electronic Tax Registers (ETRs) or Fi... Read more
Cyprus extends Zero-VAT relief on essential goods through 2026
Cyprus
Author: Nikolina Basić
Cyprus has extended the 0% VAT rate on essential goods such as baby products, hygiene items, and fresh fruit and vegetables until 31 December 2026 to support households amid the cost-of-living pressures. Retailers must keep these items zero-rated in their systems throughout 2026, while the standard VAT rate remains 19% and other reduced rates continue to apply The Cypriot government has officially... Read more