Cyprus Applies Reduced VAT Rate to Construction and Renovation Work for Educational Purposes, Extends Zero Rate for Basic Goods

Cyprus has introduced a reduced VAT rate of 5% for construction and renovation work carried out on buildings that are used for VAT-exempt educational purposes. The reduced rate covers both the construction of new buildings and the renovation/repair of existing ones, including both labor and materials. The reduced rate applies in relation to buildings used for VAT-exempt educational services by:…