The Cyprus Tax Department has issued a notice to remind taxpayer that the 5% reduced VAT rate for the following only applies for the period 1 July 2020 to 10 January 2021:
- Accommodation in hotels and other tourist accommodation;
- Restaurant and catering services; and
- Passenger transportation, including by taxis and tourist and intercity buses.
From 11 January 2021, the applicable VAT rate is reverted to the 9% reduced VAT rate as before 1 July 2020.