Update – Changes to the Reduced VAT Regime on First Homes
The House of Representatives of Cyprus is set to vote today, 02 June 2023 on a bill for amendments to the reduced VAT regime on the purchase and construction of first homes.
This came as a result of the reasoned opinion sent by the European Commission on Thursday, 01 June 2023 to Cyprus for its failure to properly apply EU VAT rules on housing. The opinion is a follow-up on the letter of formal notice sent by the Commission to Cyprus in July 2021.
Accordingly, Cyprus has been given two months to address the issues pointed out in this reasoned opinion.
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