Zero VAT on certain consumer products
The Council of Ministers approved on May 2, 2023, a Decree amending the VAT Legislation in order to impose a zero VAT rate on supplies of certain essential products.
The Zero VAT rate will apply to bread, milk, eggs, baby food, baby and adult diapers, as well as feminine hygiene products.
It is clarified that according to the VAT Legislation, businesses are obliged to perform a stock taking of the above products.
The VAT reduction on the above categories of products is temporary and will apply from the date of publication of the Decree in the Official Gazette of the Republic, until October 31, 2023.
Obligation to accept credit or debit card payments – fees
The Tax Department also reminded that under Article 30A of the Assessment and Collection of Taxes Law, businesses included in a specific list, are obliged to accept card payments for the completion of payment transactions. The Tax Department also emphasizes that businesses are prohibited from charging consumers any additional amount to process the transaction.
Failure by businesses to comply with these regulations may result in a fine of up to four thousand euros (€4,000).
Income Tax Declaration for Individuals 2022
The Tax Department announced that it is waiting for the adoption by the House of Representatives of the amending legislation governing the exemption of remuneration from first employment in the Republic of Cyprus (with effect from the tax year 2022).
The Declaration of Income of an Individual for the year 2022 cannot be posted on the TAXISnet system, before the adoption and publication of the amending legislation.
Once the amending legislation has been voted on and published, the Tax Department will proceed with all necessary changes and will inform the users of the TAXISnet system about the commencement of the submission of the Return.