Cyprus extends reduced electricity VAT for households

Cyprus has decided to extend the reduced VAT rate on household electricity bills until 31 March 2027. The measure was initially set to expire in March 2026 but will now remain in place for an additional year.

The decision was taken after authorities reviewed electricity supply prices and found that they have not decreased compared to the same period last year. As a result, the reduced VAT rate will continue to apply to help ease the cost of electricity for households.

The extension is expected to cost around €40 million and is part of broader efforts to address high energy prices and support household incomes. The measure aims to provide continued financial relief at a time when electricity costs remain under pressure.