Selling to Cyprus 2026 — VAT Rates, Rules & Compliance

This guide covers the Cyprus-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to Cypriot customers.

For the underlying EU mechanisms that apply across all member states, see:

• EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
• Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
• Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Cyprus (ΦΠΑ)

In Cyprus, VAT is known as ΦΠΑ (Φόρος Προστιθέμενης Αξίας — FPA). When you sell to a Cypriot consumer under the IOSS scheme, you must charge the correct Cypriot ΦΠΑ rate at checkout.

Standard Rate: 19%

Applies to the majority of goods: electronics, clothing (including children’s clothing), cosmetics, most digital services (SaaS, downloads, streaming), and physical goods not listed below.

Reduced Rate: 9%

Applies to:

• Accommodation in hotels and other tourist accommodation
• Restaurant and catering services (food component)
• Entry to certain cultural and sports events
• Some food products not covered under 5%
• Hairdressing and beauty services

Reduced Rate: 5%

Applies to:

• Basic foodstuffs and non-alcoholic beverages
• Pharmaceutical products and medicines
• Books (print) and newspapers
• Entry to cinemas and theatrical performances
• Passenger transport services
• Some medical equipment and supplies

Your e-commerce platform can handle rate overrides, but you must manually assign products to the correct Cypriot ΦΠΑ categories.

Currency: Euro (EUR)

Cyprus uses the Euro and has done so since 1 January 2008. All invoices and VAT amounts for Cyprus are denominated in EUR.

The Northern Cyprus Exclusion

This is the most important Cyprus-specific compliance issue for international sellers.

Northern Cyprus is not part of the EU VAT area. The northern part of the island is under the administration of the Turkish Republic of Northern Cyprus (TRNC), which is not recognised by the EU. EU VAT rules — including IOSS — apply only to deliveries to addresses in the Republic of Cyprus (the southern, government-controlled area).

In practice:

• Deliveries to Nicosia (south), Limassol, Larnaca, Paphos, and Famagusta (south) are subject to standard Cypriot ΦΠΑ
• Deliveries to addresses in northern Cyprus (Kyrenia, northern Nicosia, Famagusta north) fall outside the EU VAT framework
• Most international carriers will not deliver to northern Cyprus or will route parcels via the Republic of Cyprus customs system

If your carrier delivers to addresses in northern Cyprus, treat those sales as exports (outside the EU VAT system) — do not charge Cypriot ΦΠΑ.

Selling to Cypriot Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to Cypriot consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to a Cypriot consumer, you must comply with Cypriot ΦΠΑ rules.

IOSS vs non-IOSS in Cyprus

If you sell physical goods under €150 to Cypriot consumers, registering for IOSS is strongly recommended.

Without IOSS (DAP — Delivered at Place):

1. The parcel is stopped by Cypriot customs (Τμήμα Τελωνείων — Department of Customs and Excise)
2. CyPost or a courier contacts the customer to collect outstanding ΦΠΑ
3. The hidden cost: carriers add a customs clearance and handling fee — typically €5–€10
4. Cyprus is a small island nation with a significant expat community; unexpected customs charges create friction

IOSS eliminates carrier handling fees because VAT is cleared at the point of sale.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure shipping labels include accurate HS codes and product descriptions.

Selling to Cypriot Businesses (B2B)

For sales to a VAT-registered Cypriot business, the standard EU B2B rules apply.

1. Validate the ΦΠΑ number. Cypriot VAT numbers start with ‘CY’ followed by 8 digits and a letter (e.g., CY12345678L). Always validate on VIES before zero-rating the invoice. Note: only businesses registered in the Republic of Cyprus appear in VIES.
2. Reverse charge. Do not charge VAT. The Cypriot business accounts for ΦΠΑ on their own return.
3. Invoice statement. Your invoice must clearly state “Reverse Charge.”

Key Compliance Requirements for Cyprus

Invoice retention — 6 years

You are legally required to retain all VAT invoices and related records for 6 years under Cypriot tax law.

Invoice requirements

Invoices must include your VAT number, the customer’s address, a unique sequential invoice number, the applicable ΦΠΑ rate, and the date of supply.

Small market with high shipping costs

Cyprus is an island with a relatively small population (~1.2 million). International shipping to Cyprus can take longer than to mainland EU countries, and courier options are more limited. DHL, FedEx, and DPD serve the island, and CyPost handles postal parcels.

Shipping to Cyprus: Documentation

• Electronic customs data: ensure your carrier transmits customs data electronically.
• Accurate descriptions: use specific product descriptions with correct HS tariff codes.
• IOSS number: if using IOSS, your IOSS number must be electronically transmitted — manual notation is not sufficient.

Related Guides

• EU Overview — IOSS, OSS & VAT Rates
• Selling to EU Consumers — IOSS Guide
• Selling to EU Businesses — Reverse Charge
• EU Selling Setup Checklist

Selling from a Specific Country?

The Cyprus-specific rules above apply to any international seller.

• United Kingdom — Post-Brexit, GB sellers shipping to Cyprus face standard non-EU customs requirements. Note the Cyprus VAT number prefix is CY, which is not related to the country’s ISO code convention.
• United States — guide coming soon
• Australia — guide coming soon