Cyprus: Temporary reduction of VAT rate for certain supplies of electricity
A temporary reduction of the rate of value added tax on electricity supplied to “vulnerable consumers” and to certain households
Temporary reduction of VAT rate for certain supplies of electricity
The Council of Ministers on 13 December 2021 approved measures providing a temporary reduction of the rate of value added tax (VAT) on electricity supplied to “vulnerable consumers” and to certain households. The rate reduction does not affect businesses.
Under these measures, the VAT rate on electricity supplied to vulnerable consumers is temporarily reduced to 5% (from 19%) for a six-month period beginning 1 November 2021 and the corresponding VAT rate for other households is reduced to 9% for a three-month period beginning 1 November 2021.
Read a December 2021 report prepared by the KPMG member firm in Cyprus
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.