Increase in VAT effective tax rate

| Published on 08 May 2014


Effective from 13th January 2014, an increase in VAT effective tax rate took place in Cyprus with the rate increasing from 18% to 19%. The reduced rate of VAT will increase from 8% to 9% respectively.  Goods or services which are currently subject to the reduced VAT rates of 5% and 0% respectively will remain unaffected.  

All taxable persons subject to the aforementioned Increase in VAT effective tax rate are obliged to perform a physical inventory count to include both quantities and valuation upon the close of business on 12th January.  The final inventory report should be maintained for a period of 6 years. 

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