The Circular clarifies VAT treatment of cultural events combined with restaurants and catering services.
The Cyprus Tax Department issued Circular 6/2025 on 8 October 2025, clarifying the VAT treatment of events combined with catering or restaurant services.
Cyprus applies a 5% reduced VAT rate to tickets for cultural events, such as performances, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, and exhibitions. Premieres of theatrical, musical, dance, and classical performances in theatres qualify for a 3% reduced rate, with subsequent performances subject to a 5% rate.
Cultural services provided by public organisations and nonprofits are generally VAT-exempt; however, ticketed events that potentially affect competition may require a VAT evaluation.
In contrast, restaurant and catering services are subject to a 9% rate. When an event ticket includes catering or restaurant services and the price remains the same regardless of whether these services are used or not, the transaction is taxed at 9%. If catering is merely ancillary, such as a complimentary drink, the 5% rate applies.
