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CYPRUS VAT ON IMPORTS

V.A.T. is imposed on all imported commodities whether the importer is a person liable to V.A.T. or not. ?n importation, it is considered as an import duty and it is charged and paid at the time at which the import duty is paid according to the customs legislation. V.A.T. paid on importation is considered to be an input tax for persons liable to V.A.T.

Standard rate of VAT In general all importations, with few exemptions provided by the VAT and customs legislations, are subjected to the standard rate of duty, which is 15%.

Reduced rate of VAT All imported goods listed in Annex V to the VAT Law 95(I)/2000 are subject to reduced rate of VAT which is 5%, provided that the prerequisites mentioned there apply. Here are some examples:

Coffins
Insecticides, rodenticides, fungicides, herbicides, disinfectants, etc.
Animal feeding stuffs, food for birds and fish.
Additives for animal feeding stuffs.
Seeds and other means of propagating plants used for human food or animal feeding stuffs.
Live animals used in the preparation of foodstuffs.

Zero rate of VATAll imported goods listed in Annex VI to the VAT Law 95(I)/2000 are subject to zero VAT rate, provided that the prerequisites mentioned therein apply. Here are some examples:

foodstuffs for human consumption;
medicaments classified as such under T.H. 30.03 and 30.04 according to customs legislation;
newspapers, magazines, books of T.H. 49.01 to 49.05;
clothing and footwear for children;
hearing aids;
human and veterinary vaccines;
invalid wheelchairs.

Exempted itemsGoods exempted from the payment of VAT are listed in Annex VII to Law 95(I)/2000. Here are some examples:

dental prostheses supplied by dentists and dental technicians;
human organs, blood and human milk;
the supply at face value of postage stamps.

The case where imported goods are delivered before their clearance for home use is an exception to this rule. This is for example the case whereby goods are sold by the importer to another person while they are in temporary storage or in a customs warehouse. The taxable value in such a case is the value of delivery (i.e. sale), provided it is not lower than the customs value. If the goods are sold under such conditions more than once, the taxable value shall be taken to be the sale price to last buyer, who will clear the goods for home.

Cyprus Ministry of Finance