V.A.T. (Value Added Tax)
V.A.T. in Cyprus is charged on the purchase of almost all goods and services. There are three VAT rates, the rate of 15%, the rate of 5% and the zero rate. Restaurants, with the exception of alcoholic beverages, hotel accommodation, as well as books, magazines and newspapers are taxable at the rate of 5%. Foodstuffs, medicines and airfares are taxable at the zero rate. Bank services, medical and dental services are exempted from any VAT charge. Retail prices displayed for goods charged with VAT should be VAT inclusive.

V.A.T. CLAIM (Tax free shopping for visitors)
According to the V.A.T. legislation in force, foreign visitors to Cyprus (visitors from countries outside the EU) can claim back the V.A.T. on goods exported to a place outside the EU in their hand luggage.
Visitors are eligible for a V.A.T. refund if:
1. They are not holders of an EU country passport or other form of identification.
2. They have not resided in Cyprus for more than 365 days in the last two years before the date they purchased the goods,
3. The total purchase must exceed C£100 and not over C£10 000 in a store or chain of stores,
4. The goods must be exported in hand luggage by the last day of the third month following the month in which the goods were purchased.

Three easy steps to claim your V.A.T. refund.
1. Shop wherever there is a tax-free shopping sign and simply ask for your tax-free document.
2. When leaving Cyprus show your purchases and passport to customs officials and have your tax-free document stamped.
3. Receive your refund in the method of your choice.

For further information you may contact:
1. V.A.T. Service, CY 1471, Lefkosia
Tel: 22 60 17 65, Fax: 22 66 04 84
E-mail:  Αυτό το ηλεκτρονικό μήνυμα προστατεύεται από spam bots, θα πρέπει να έχετε ενεργοποιημένη τη Javascript για να το δείτε
website: www.mof.gov.cy/ce
2. Cyprus Consumers’ Association,
Tel: 22 51 61 12, 22 51 61 13, Fax: 22 51 61 18
3. Global Refund
Tel: 24 81 75 55, 99 44 25 33, Fax: 24 81 75 58

Tipping:
Because of the 10% service charge levied in hotels and restaurants, a tip is not obligatory, but small change is always welcome.
Taxi-drivers, porters, hairdressers etc., always appreciate a small tip.