VAT / Tipping
V.A.T. (Value Added Tax)
V.A.T. has been introduced in Cyprus on the purchase of almost all goods and services. Currently, there are three VAT rates - the standard rate which is 15% , the rate of 5% and the zero rate (0%).
Restaurants (with the exception of alcoholic beverages - 15%), and hotel accommodation are taxable at the rate of 5%. Items of necessity such as basic foodstuffs, medical products, children's clothing and footwear, books, magazines, newspapers, airfares are zero rated. Bank services, medical and dental services, the sale of immovable property etc., are exempted from any VAT charge.
Prices displayed for standard rated items should be VAT inclusive.
For further information you may apply:
VAT Service, CY 1471, Lefkosia,
Tel: +357 22 30 63 46
Fax:+357 22 76 79 65
Cyprus Consumers' Association,
Tel: +357 22 51 61 12, 22 51 61 13, 22 51 61 14
Fax:+357 22 51 61 18
Because of the 10% service charge levied in hotels and restaurants, a tip is not obligatory, but small change is always welcome.
Taxi-drivers, porters, hairdressers etc., always appreciate a small tip.