The Ministry of Finance has announced that a 5% Value Added Tax (VAT) has been imposed on all food and beverages. This excludes alcoholic drinks, (spirits, beer, & wine) and soft drinks, which will be taxed at 15%. The new taxation also extends to ‘delivery’ & ‘take away’ food. It explained that the new tax had to be imposed in line with Cyprus’ EU obligations. Moreover the 0% VAT rate for medicine and vaccines is now abolished and a 5% VAT rate is imposed.
5% VAT on Food and Medicine starting today
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