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

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/