The VAT rate in Cyprus will increase from 15% to 17% effective from the 1st March 2012. Any goods or services falling within the reduced VAT rates of 5%, 8% and 0% will remain unaffected from the increase of the VAT rate.
All taxable persons affected by the change of the VAT rate must – on the eve of the VAT increase – go through a stock-taking of their business which includes a quantitative measurement and assessment. The taxable persons must record stock-taking in a stock –taking file of their firm and keep it for seven years.
Despite the above increase of the VAT rate, Cyprus still enjoys one of the lowest rates in the EU.