The Cyprus Tax Department has issued a notice on the application of the 5% reduced VAT rate. This includes that the 5% rate applies instead of the 9% rate from 1 July 2020 to 10 January 2021 for the following:
- Accommodation in hotels and other tourist accommodation;
- Restaurant and catering services; and
- Passenger transportation, including by taxis and tourist and intercity buses.
The application of the 5% rate is provided by Decree KDP 268/2020, which was published in the Official Gazette…