Tuesday June 1, 2010
Cyprus has announced that the application of the reduced VAT rate of 5% on hotel and holiday accommodation is extended to 31st December 2010.
From 1st May the VAT rate on restaurant and catering services will be increased to 8%. The rate up to 30th April was 5%.
Alcoholic beverages are taxed at the standard rate of 15%.
Tuesday May 5, 2009
Cyprus’s Supreme Court will make the decision as to whether VAT will be cut for restaurants in the country, it has been announced.
The House Plenum is set to reject the second referral of the proposed law and the ruling party AKEL has claimed this means that the only way to resolve the situation will be in court.
According to the Cyprus Mail, MP Yiannos Lamaris said the aim of the legislation is to provide more support to the country’s tourism industry.
He explained to the newspaper: "This is what the government aimed to do and it must be respected by all parties.
"I feel this obsession with confusing other aspects surrounding VAT does not contribute to the government’s aim and everything we demand of the government to deal with the financial recession."
Russia recently announced that it has removed Cyprus off its blacklisted names of tax jurisdictions.
Tuesday April 7, 2009
The Cypriot parliament has been discussing a three per cent reduction in VAT for restaurants in the country, it has been reported.
All parties except AKEL have agreed to the government’s proposed VAT drop, which would see a reduction from eight per cent to five per cent solely for hotels and tourist packages, according to the Cyprus Mail.
The majority of leading political parties in the country said the government was "offering favourable treatment to tourists at the expense of locals".
It is believed a decision ion the VAT cut will be made later this week after the notion is submitted to the Plenum for approval.
Maria Kyriacou, MP for DISY, told the newspaper: "This is unfair competition; it is discrimination at the expense of Cypriot tourists."
The comments from Ms Kyriacou have been echoed by the Cyprus Association for Restaurant, Bar and Nightclub owners.
It was recently reported the Czech government is planning to lower the value of VAT across its service sector, including restaurants, from 19 per cent to nine per cent.