Are you planning a trip to Paphos and want to know all the best places for tax-free shopping? Look no further!
When finding amazing deals, there’s no better place than Paphos.
This Greek paradise is beautiful, and its wealth of Vat & Tax-Free stores give shoppers plenty of opportunities to get great items at reduced prices.
Everyone loves scoring a bargain, especially when they’re on vacation, so if you’re looking for economical shopping options in Paphos, you won’t be disappointed.
In this blog post, we’ll tell you everything that needs to know about Vat & Tax-Free Shopping in the area, so keep reading if you’re ready to head out into Paphos’s incredible markets with your wallet–and your confidence–in tow!
V.A.T. (Value Added Tax) in Paphos, Cyprus
Get ready to pay more for your beer and wine but less for everything else!
Every supply of goods or services is subject to V.A.T. at a standard rate of 19%, with a few exceptions: transport of passengers and their accompanying luggage, services at restaurants (excluding alcoholic beverages), and accommodation in the hotel sector are only charged at the reduced rate of 9%.
Why pay 19% when you can pay 5% or less?
V.A.T. has a reduced rate of 5%, and it applies to lots of goods and services: transport with urban and rural buses, camping sites, letting of caravan parks, writers and artists’ services, hair salon services, specific products for persons with special needs, confectionary products and entry fees to cultural events.
So don’t pass up this great opportunity – save your pennies!
Save your cash on all the necessities – zero-rated V.A.T. has you covered!
Certain goods and services are exempt from V.A.T., including the supply, hiring, and repair of sea-going vessels and aircraft, services for meeting the immediate needs of sea-going vessels, leasing or letting of immovable property, financial services and lotteries, medical care, social welfare and education, sports, and cultural services, insurance transactions – you name it!
So go wild with your spending without worrying about those extra taxes!
Don’t be fooled by misleading prices
When something is V.A.T. inclusive, it includes the taxes in the price you see on the shelves!
So if you want to grab a bargain, make sure your purchase includes the V.A.T., or you’ll be paying more than necessary.
Tax-free shopping & Tax refunds in Paphos
Don’t miss out on the chance to save. If you’re a foreign visitor to Cyprus, you could get a V.A.T. refund when you make significant purchases, especially if you purchase clothing, footwear, electrical products, photography, and more at home!
All you need is not to hold an E.U. passport or another form of I.D., have not resided in the E.U. for over 365 days in the past two years, and make sure that your total purchase is over €400.
Oh, and make sure you export your goods in luggage before the last day of the third month after the purchase – then all that’s left for you to do is start planning where to spend that extra cash!
How to claim your V.A.T. refund in Paphos?
To receive a tax refund on your purchases on the trip, you must purchase in stores marked with a tax-exempt sticker, and the purchase must be in an amount that exceeds 50 euros in one purchase.
At the end of the purchase, you must request a tax refund form at the store, which you will need later.
The tax refund can be done at one of the two tax refund offices:
1. A tax-free position in Kings Avenue Mall is active until 18:00 and refunds half the possible amount.
2. A station located at the airport, where you must pass after you finish your trip in Paphos, and before the security checkpoint, you must go to the tax refund counter at the airport.
You can find the counter after exiting the check-in for the flight; right before the mirroring machines is a small silver-colored booth – there sits an official of one of the tax refund companies, Global Blue and Tax-Free, who signs the receipts.
When you get to the counter, you will have to declare the purchases you made during the vacation, show your passport and invoices, and in addition, you will have to give the receptionist the form you received at the store.
Please note that the clerk can require you to show the purchases you declare.
Receive the refund
There are two options for receiving a refund:
The first option is to return the amount to the credit card: you will receive the amount after a few days, usually in two weeks.
Another option is to ask to receive cash minus a commission.
Frequently asked questions
How much is V.A.T. in Cyprus?
V.A.T. in Cyprus is currently set at 19%. This rate applies to all goods and services except those zero-rated or exempt from the tax.
Can you claim the V.A.T. back in Cyprus?
Yes, if you are a non-EU resident and meet the criteria to be eligible for a tax refund, you can apply for one on goods higher than €400.
What is exempt from V.A.T. in Cyprus?
Foodstuffs, drinking water, and medicines are exempt from V.A.T. in Cyprus.
Educational and social services, sports, and cultural activities are also exempt.
What is necessary to claim a V.A.T. refund?
To receive a tax refund on your purchases during the trip, you must purchase in stores marked with a tax-exempt sticker, and the purchase must exceed €50.
You must obtain a tax refund form from the store at the time of purchase, which you must declare at one of two tax refund offices in Paphos before exiting the country.
Can I receive a V.A.T. refund on services?
No, refunds are only available for goods purchased in stores. Services such as hotel stays and car rentals are not eligible for V.A.T. refunds.
Can I get a V.A.T. refund if I’m an E.U. Citizen?
No, only non-EU citizens are eligible for tax refunds in Cyprus.
Does Cyprus have a tourist tax?
No, Cyprus does not impose a tourist tax.
Where can I find more information about V.A.T. in Cyprus?
You can find more information about V.A.T. in Cyprus on the Tax Department in Cyprus.
Now you know about V.A.T. refunds in Paphos – how to claim them, what is exempt from the tax, and what you need to do to receive a refund.
So hopefully, your next shopping trip will be even more rewarding!
Good luck, and happy spending!