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Cyprus: Reduced VAT rates on electricity supply for households from November 2022.

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As rising electricity prices continue to burden economies and the citizens, the Cypriot Ministry of Finance (MoF) has directed the imposition of a reduced VAT rate for the supply of electricity. The rates apply for households as following:

 

  • A reduction of the VAT rate on electricity consumption in vulnerable households, from 19% to 5%, for a period of 6 months. The legislation applies to the period from 1/11/2021 until 30/04/2022.

 

  •  A reduction of the VAT rate on electricity consumption for other households, from 19% to 9%, for a period of 3 months. The legislation applies to the period from 1/11/2021 until 31/01/2022

 

 

Additionally the Cypriot MoF is encouraging its citizens to advantage of the green-energy initiatives as a long-term solution for moving away from using fossil fuels. Some of the green-energy projects and plans mentioned by MoF include:

 

  • Ministry of Energy, Trade and Industry to provide sponsorships for the replacement of energy-intensive household appliances, in particular air conditioners, refrigerators and washing machines, with new efficient high-energy class products for vulnerable consumers
  • subsidy for vulnerable consumers to replace old type bulbs with LED bulbs.
  • Sponsorship Plan for installation of photovoltaics and net-metering
  • RES Fund plan for thermal insulation and photovoltaics
  • Energy upgrade plans

 

Source: http://mof.gov.cy/

 

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