In pursuance to the Cyprus – Troika memorandum of understanding, Cyprus will be obliged to raise the VAT tax rate. Currently the VAT rate in Cyprus is 17% after a recent amendment back in March of 2012. The Cyprus – Troika memorandum provides for a VAT rate of 18% from 1st of January 2013 and a further rise of 1% to 19% from 1st of January 2014.
The rise of VAT is expected to affect the relevant rates of Cyprus Yacht Leasing Scheme. The lowest rate of yacht leasing scheme for instance will rise from 3.4% to 3.6% for 2013 and from 3.6% to 3.8% for 2014.