Cyprus confirms VAT hike
The government has confirmed that Cyprus’s planned VAT rise will take place on March 1.
The tax hike will see the standard rate of VAT rise from 15% to 17%. The government estimated last year that the measure will generate an annual €150 million ($214 million).
Giannos Ioannou, a tax consultant at Eurofast – Taxand, expects the cost of the VAT rise to be passed onto consumers.
“The government has clarified that there would be no raise on the 5% VAT which applies on foodstuff and pharmaceuticals, or the 8% VAT which applies on services in the hotel sector, transportation, on the services of restaurants and the supply of food in the course of catering,” said Iannou.