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Please be reminded that as from Monday, 13 January 2014, the standard VAT rate will be increased from 18% to 19% and reduced rate from 8% to 9%.

Goods and services that fall within the zero VAT rate or are exempt from VAT or subject to the reduced VAT rate of 5%, will not be affected at all by the aforementioned changes.

With respect to the reduced VAT rate of 9%, this will be levied on all services as follows:

  • Transport of passengers and their luggage inside the Republic by taxis and buses or even transport by sea.
  • Restaurant and catering services.
  • Hotel and Tourist accommodation.

According to the VAT legislation all existing registered persons are required to conduct a stock count of their products that will be affected by the upcoming change in the above VAT rates. This should take place by 12 January 2014 the latest.

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