On which supplies is VAT charged at the standard rate of 15%, at the reduced rates of 5% and 8%, which supplies are zero-rated and which supplies are exempted?

VAT is charged on every supply of goods or services at the standard rate of fifteen per cent (15%). The reduced rate of 5% is imposed on the supply of coffins, services supplied by undertakers, services of writers, artists, on the supply of fertilizers, foodstuff for animal, live animals, seeds, non bottled water, newspapers, books, periodicals, certain products for persons with special need, ice cream, certain types of nuts (salted etc), transport of passengers and their accompanying luggage with urban and rural buses, the letting of camping sites and caravan parks.

As from 19 October 2007, the following are taxable at the reduced rate of 5%:
· hair salon services,
· repair and maintenance of private households (based on specific condition)
· animal feedstuff
· confectionary product
· bottled water
· Juices
· pharmaceutical products that were previously taxed at the standard rate of 15%
· entry fees to theaters, cinemas at sports events, luna parks and similar cultural events

As from the 1st August, 2005, the following are taxable at the reduced VAT rate of 8%: transport of passengers and their accompanying luggage within Cyprus, with urban, suburban and rural taxis as well as with tour and suburban buses.
The VAT reduced rate of 8% is also imposed as from the 1st January, 2006 on the services of restaurants and the supply of food in the course of catering except the supply of alcoholic beverages wine and beer, which is chargeable at 15%, as well as on the provision of accommodation in the hotel sector or in sectors with a similar character. As from the 1st January, 2006, the transport of passengers and their accompanying luggage by sea, within Cyprus is taxable at the VAT rate of 8%.
Certain supplies of goods or services are zero-rated; the supply, hiring and repair of sea-going vessels and aircrafts, the supply of services to meet the direct needs of sea-going vessels, the supply of goods entered into customs regime, the supply of medicines and food – except the supply of food in the course of catering. In addition, a supply of goods is zero-rated if the VAT Commissioner is satisfied that the goods have been exported or supplied to a registered person in another member state.
No VAT is charged on supplies of goods or services which are exempted under the VAT legislation; leasing or letting of immovable property, the supply of immovable property with the exception of buildings or parts of buildings and the land on which they stand if the application for a building permit was submitted after the 1st May, 2004, financial services, lotteries, medical care, social welfare, education, sports, cultural services, insurance transactions etc.

Since the establishment of V.A.T. legislation on the 1/7/1992 the changes for V.A.T. rates are shown in the table that follows:

V.A.T. Rates

Dates / Periods	Standard Rate	Reduced Rate 1	Reduced Rate 2
01/07/1992 - 30/09/1993	5%	---	---
01/10/1993 - 30/06/2000	8%	---	---
01/07/2000 - 30/06/2002	10%	5%	---
01/07/2002 - 31/12/2002	13%	5%	---
01/01/2003 - 31/07/2005	15%	5%	---
01/08/2005 - today	15%	5%	8%