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Payment of reduced electricity bills as of January 2022

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Household electricity bills in Cyprus will have a reduced VAT from 19% to 9% in effect as from November 1 and for the next three months, it was officially announced on Tuesday.

In addition, vulnerable households will see VAT on their electricity bills fall from 19% to 5% for the next six months.

Payment of the reduced bi-monthly bills begins in January.

The relevant announcement in the official gazette came after the European Commission’s VAT committee approved the government’s proposal, according to the Finance Ministry.

The measure aims to tackle the rise in energy prices and prevent energy poverty at a time when the cost of electricity in Cyprus is the highest in the EU in many past years.

However, the government’s decision contradicts that  which was recently approved by majority in Parliament .

That is, a bill approved by opposition parties called for a universal reduction of the VAT rate from 19% to 9% for all – households and businesses – without an expiration date.

They had argued that  the indefinite reduction is allowed by the EU.

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