On the 21st of December 2021, the Council of Ministers issued a Decree Κ.Δ.Π. 525/2021 for the temporary application of reduced VAT rates on the supply of electricity.

In particular, the applicable VAT rate is reduced to:

· 5% on the supply of electricity falling under category of household pricing with code 08 and 56 of the Cyprus Electricity Authority, applicable as from 01/11/2021 till 30/04/2022.

The reduced VAT rate only applies to the customers that are Cypriot citizens or citizens of another Member State of the European Union or European Economic Area or those who have the same rights as the aforementioned, who legally reside in the areas controlled by the Republic of Cyprus and fall in one of the below categories:

(a) Large or five-member family receiving Child Allowance[1] for three dependent children and over and with an annual gross family income of up to € 51,258. The income criterion of € 51,258 for the annual gross family income increases gradually by € 5,126 for each additional child over four.

(b) Recipients of Public Aid[2].

(c) Beneficiaries of the Minimum Guaranteed Income1.

(d) Recipients of a Severe Physical Disability Allowance3.

(e) Recipients of Care Allowance for Quadriplegic Persons3.

(f) Beneficiaries of Care Allowance for Paraplegics3.

(g) Haemodialysis patients who receive a Traffic Allowance3.

(h) People suffering from multiple sclerosis (multiple sclerosis) who are registered members of the Pancyprian Multiple Sclerosis Association.

· 9% on the supply of electricity falling under category of household pricing with code 01, 02 and 56 of the Cyprus Electricity Authority for the consumers falling under the pricing codes of 01 and 02 of the Cyprus Electricity Authority, applicable as from 01/11/2021 till 31/01/2022.

For more information, please contact VAT@kinanis.com

[1] by the Welfare Allowance Management Service of the Ministry of Labor, Welfare and Social Insurance;

[2] from the Social Welfare Services of the Ministry of Labor, Welfare and Social Insurance;

[3] from the Department of Social Integration of Persons with Disabilities of the Ministry of Labor, Welfare and Social Insurance.