VAT imposed on food and medicine in Cyprus

It explained that the new tax had to be imposed in line with Cyprus' EU obligations.

A press release, issued here by the Ministry of Finance, said that food, medicine and vaccines – which were taxable with a low VAT of 5% – will not be affected, following the approval of new tax legislation.

On the same date, zero – rated VAT will be abolished on the delivery of medicine and vaccines and a 5% VAT will be imposed.

Delivery of ready made or non ready made food or drinks – excluding alcoholic drinks, beer, wine and soft drinks – with or without transport costs i.e take away, delivery, which have no other support services, will also have a VAT of 5% as of January 10th.