Import VAT and Duty in Cyprus
VAT Rates in Cyprus
The standard VAT rate in Cyprus is 19% (FPA (ΦΠΑ)). Reduced rates of 9% and 5%.
Import VAT and customs duty in Cyprus are administered by Department of Customs and Excise, under the Ministry of Finance.
The rate applying on import is the rate that applies to a supply of the same or similar goods on the Cyprus domestic market, which is why correct commodity classification matters at the classification stage and not only at invoicing.
The Taxable Amount in Cyprus
Import VAT is calculated on the Customs value on a CIF basis, plus customs duty and other charges payable at importation. Freight and insurance to the point of entry into the EU are included in the customs value, so a shipment budgeted on goods value alone will understate the VAT payable.
Customs Duty in Cyprus
EU Common Customs Tariff applied through TARIC; the rate is set by the commodity code and origin. Duty is set by the commodity code and origin at the date the declaration is accepted — there is no single national rate that applies across a consignment.
Low-Value Consignments in Cyprus
The EUR 22 import VAT exemption was abolished EU-wide on 1 July 2021. There is no value below which a commercial import escapes VAT. The EUR 150 threshold relieves customs duty only. From 1 July 2026 a temporary flat duty of EUR 3 per item category applies to consignments at or below EUR 150, running until 1 July 2028.
Postponed Accounting in Cyprus
VAT-registered Cypriot importers may account for import VAT through the VAT return rather than paying at the frontier. It is a cash-flow mechanism, not an exemption, and it does not apply to customs duty.
Planning Duty and VAT for Cyprus
Limassol is Cyprus's principal commercial port and the main gateway for China-origin container cargo, with Larnaca serving the south-east. Because Cyprus lies on the eastern Mediterranean, Asia-origin services reach it on a different pattern from the northern Adriatic or North European calls, and importers should expect Limassol and Larnaca to behave differently on transit even though they are on the same island. The final delivery leg is always an island movement, so door-to-door planning includes the short on-island run.
That routing, and the country-specific points below, are what turn a generic EU calculation into a Cyprus one. They belong in the landed-cost model from the outset rather than being discovered at clearance:
- Cypriot standard VAT is 19%, the lowest in this group of EU markets
- Cyprus is an island — the final leg is always an on-island movement
- ISPM 15 treatment and marking for all wood packaging
Frequently Asked Questions
The standard rate is 19% (FPA (ΦΠΑ)). Reduced rates of 9% and 5%.
The taxable amount is the Customs value on a CIF basis, plus customs duty and other charges payable at importation. Freight and insurance to the point of entry into the EU form part of the customs value, so under-declaring freight understates the VAT.
No. The EUR 22 import VAT exemption was abolished EU-wide on 1 July 2021. The EUR 150 threshold that remains relieves customs duty only — it has never been a VAT threshold.
From 1 July 2026 a temporary flat duty of EUR 3 applies per declared item category on consignments valued at EUR 150 or less. It is charged on the declarant, not the consumer, and runs until 1 July 2028.
No. Postponed VAT accounting changes when and how import VAT is accounted for, not whether it is due. The VAT remains payable; it is declared through the VAT return rather than paid at the frontier.