Cyprus was the EU country with the lowest VAT level of 15% till this year. The VAT raise at 17% for supply of goods and services, has been implemented since 1 March 2012. The growth of 2%, still situate Cyprus as the best tax environment for business.
The new VAT value does not affect the services and products that fall under the reduced VAT rates of 5% or 8% or zero VAT rate, according to the VAT legislation.
According to the Article 55 of the Vat Law there are some cases when a taxable person selling goods or providing services has the choice of applying the old VAT rate or the new one