The Cyprus Tax Department recently issued two notices regarding the VAT rate for products and services related to COVID-19. The first notice provides that with effect from 1 January 2023, supplies of COVID-19 in-vitro diagnostic tests and COVID-19 vaccines and related services are no longer eligible for the zero VAT rate that applied until 31 December 2022. As such, the applicable VAT rates are:

• 19% for COVID-19 in-vitro diagnostic tests and related services; and
• 5% for COVID-19 vaccines

However, the second notice provides that as per a Decree of the Council of Ministers dated 13 January 2023, the zero VAT rate is again applied for COVID-19 in-vitro diagnostic tests and vaccines with effect from 13 January 2023 to 31 March 2023.