The present update supplements Indirect Tax Update 109 circulated on 6th October advisingof the recent amendment to the Cyprus VAT Act in relation to the applicable VAT rate on thesupply of gas. Please be reminded that effective from the 2nd October 2015, gas supplies incylinders are subject to the reduced VAT rate of 5%.
Due to the general confusion caused in business circles surrounding the correctinterpretation of the relevant amendment and in order to avoid the incorrect VAT treatmentof such transactions, the Cyprus Tax Authorities proceeded issuing VAT circular 196.
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