Ministry reverts VAT refund amount to €50

The Ministry of Finance's new circular set to change in 2024, altering the decision that foresaw an increase in the minimum expenditure from €50 to €175.

This decision aimed to allow tourists from non-EU countries to be eligible for VAT refunds.

Members of the AKEL party brought up the issue in the Parliamentary Committee on Energy, Trade, and Industry. The Committee's President, Kyriakos Hatzigiannis of DISY, stated that tourists should continue shopping with the freedom to get their VAT refunded.

He noted that the government's attempt to raise the amount from €50 to €175 was a misguided decision, recognized as such, and they will proceed with a corrective directive. The increase, he added, particularly affected Cypriot traditional products purchased by tourists.

After the Committee meeting, AKEL member Kostas Kosta mentioned that in other countries, the minimum purchase amount required for VAT refund is much lower. In Spain, it's 1 cent, in Turkey 4.5 euros, and in Greece, Germany, Portugal, and Malta, it's 50 euros.

He further highlighted that the Ministry of Finance unjustifiably raised this amount from €50 to €175 in its circular and requested the ministry to consult with all involved parties.

Expressing satisfaction with the Ministry's decision communicated today, he stated that they will issue a new circular to revert to the original amount of €50 per tourist.

Representatives from the tourism sector informed them that the previous decision had an impact on tourists from Russia, Israel, and other countries.