The standard VAT rate of 18% will increase to 19% as of the 13 of January 2014, along with the reduced rate which is currently 8% going up to 9%.
The reduced rate applies to those falling under schedule 12 of the Cyprus VAT legislation, the main categories include:
– Passenger transport,
Goods or services that fall within the reduced rate of 5% and 0% will remain unaffected, these are included in schedules 5 and 6 of the Cyprus VAT legislation.
All affected by the changes of the standard rate are obliged to physically stock take their inventory by close of business 12 of January 2014.