Cyprus has always been attractive to tourists thanks to its sandy beaches, warm sea, luxurious hotels, and historical landmarks. However, it’s not just the relaxation that draws travelers: Cyprus offers excellent shopping opportunities, particularly due to the VAT refund system known as TAX FREE. In this article, we will cover all aspects of TAX FREE refunds in Cyprus, including the criteria, the process of claiming, and useful tips for tourists.
Contents
Basics of TAX FREE
What is TAX FREE?
TAX FREE is a system that allows foreign tourists to reclaim the Value Added Tax (VAT) included in the price of goods. In Cyprus, the VAT rate is 19%. This system is beneficial for tourists as it allows them to save significantly on purchases.
Why is VAT refunded?
Tourists staying in Cyprus for a short period cannot benefit from social services financed by VAT. Therefore, the government provides an opportunity to refund this tax, encouraging tourists to shop and supporting the local economy.
Conditions and Criteria for TAX FREE Refunds
Non-EU Resident Status
VAT refunds are available only to individuals residing outside the European Union. If you are a citizen or resident of an EU country, you are not eligible for TAX FREE refunds in Cyprus. To confirm non-resident status, you need to present a passport or another form of identification.
Minimum Purchase Amount
To qualify for a VAT refund, purchases must be made for a minimum amount in one store. In Cyprus, this amount is usually at least 50 euros. It’s important to note that the minimum amount may vary depending on the store’s policy.
Length of Stay
All purchases must be taken out of the country within three months from the date of purchase. Purchases made outside this period are not eligible for VAT refunds. This limitation is in place to control the export of goods and prevent abuse.
Process of Claiming TAX FREE Refunds in Cyprus
Making Purchases
Purchases must be made in stores participating in the TAX FREE program. These stores have special stickers or signs indicating their participation in the TAX FREE system. Such stores can be found both in major shopping centers and tourist areas.
Requesting a TAX FREE Receipt
When paying for your purchases, be sure to ask the seller for a TAX FREE receipt. This receipt will list your purchases and the amount of VAT you can reclaim. Some stores may ask you to fill out a special form on-site. Ensure that all details on the receipt are correct to avoid issues during the refund process.
Filling Out the Form
The store will provide you with a special form that needs to be filled out. This form includes your personal details, passport information, and purchase details. Usually, forms are filled out in English or Greek. It’s important to check that all fields are correctly filled out, as errors can lead to a denial of the refund.
Customs Control
Before departing from Cyprus, you need to pass customs control at Larnaca or Paphos airports. At the customs post, you must present your purchases, receipts, and the completed TAX FREE form. The customs officer will check the goods and stamp your form. It’s important that all goods are in unused condition and can be presented for inspection. Customs control usually takes place in a special area before flight check-in.
Receiving the Refund
After passing customs control, you can receive your VAT refund in several ways:
Cash
Some airports offer cash refunds at special TAX FREE refund points. This is the fastest way to get your money. Refund points are usually located in the departure area after customs control.
Bank Card
Funds can be credited to the bank card indicated on the form. This usually takes several weeks but can take up to two months depending on the bank. For this, you need to provide the correct details of your card and ensure it is valid for at least three months after submitting the refund application.
Refund by Postal Check
The refund can be issued via a postal check sent to your home address. This method can take more time, so it is chosen less frequently. Note that some postal services may charge a fee for cashing such checks.
Useful Tips and Recommendations
Keep All Receipts and Forms
Ensure you have all the necessary documents and receipts to present at customs. If you lose any of these documents, a refund may not be possible. It is recommended to keep all documents in one place, such as in a separate folder or envelope.
Arrive at the Airport Early
The TAX FREE refund process can take some time, especially if there are many passengers at the airport. It is advisable to arrive at the airport well in advance to allow sufficient time to complete all procedures. This is particularly important during peak seasons when tourist traffic is significantly higher.
Check the Rules of Specific Stores
Conditions and minimum amounts for refunds can vary between stores. Verify this information before making a purchase to avoid misunderstandings. Some stores may offer special discounts or promotions for customers processing TAX FREE.
Prepare Goods for Inspection
Ensure all your purchases are accessible and can be quickly presented for customs inspection. This will help reduce the time required for the procedure. If you have bought large or bulky items, ask the seller how best to prepare them for inspection.
Consider Possible Fees
Some TAX FREE refund operators may charge a fee for their services. Check this information in advance to avoid unpleasant surprises. Also, consider possible bank fees for international transfers if you choose to have the refund credited to your card.
Check the Working Hours of Refund Points
TAX FREE refund points may have limited operating hours, especially in smaller airports. Check the schedule in advance so as not to miss the opportunity to receive your money.
Check Airline Rules in Advance
Some airlines may have specific requirements for carrying goods purchased abroad. Ensure your purchases comply with these requirements to avoid problems at check-in.
Features of Transporting Certain Goods
Olive Oil
Among the items allowed to be carried in luggage, olive oil holds a special place. According to one airline, spilled olive oil can ruin the entire baggage compartment, so it must be in factory packaging and sometimes additionally packed in wooden crates. Liquids in containers over 100 ml are prohibited in hand luggage, even if the container is partially filled. For liquids bought in Duty Free, special rules apply: they must be packed in a sealed plastic bag.
Cosmetics and Perfumes
When transporting cosmetics and perfumes, you should also consider restrictions on liquids in hand luggage. Products bought in Duty Free should be sealed in a special bag with a receipt confirming the purchase on the day of departure.
Which Stores Issue TAX FREE?
In Cyprus, all major stores issue TAX FREE. Small stores do not always provide this service, but those that do have relevant stickers on the entrance doors or at the cash register. Stores in Cyprus cooperate with international tax refund systems such as Global Refund Cyprus, Euro Refund Cyprus, and Global Blue Cyprus. The VAT in Cyprus is 19%, and you can reclaim it minus a handling fee.
How to Find TAX FREE Stores
Look for stickers on store doors or at the cash register. These stickers indicate that the store participates in the international tax refund system. You can also ask the seller if the store offers TAX FREE services.
Who Is Eligible for VAT Refund?
VAT refunds are available for non-EU citizens and non-residents of Cyprus who are departing the country. EU citizens are not eligible for VAT refunds.
Additional Features of the Process
If you forget to cash your TAX FREE voucher at the airport, you can do so back home at a bank that is a representative of the TAX FREE system. However, a fee will be charged for cashing the voucher. Remember that the tax is refunded to foreign citizens who purchased goods in Cyprus and then took them out of the European Union.
List of Goods Eligible for TAX FREE
The TAX FREE system applies to the following categories of goods:
– Industrial goods: clothing, footwear, jewelry, watches, accessories, household and electronic appliances.
– Cosmetics.
Goods not eligible for VAT refund:
– Food products.
– Alcohol and tobacco products.
– Vehicles and vessels.
– Precious metals in bank bars and precious stones.
– Services, hotels, restaurants, and transportation tickets.
Refund Procedure at Larnaca and Paphos Airports
At Larnaca Airport:
1. Before check-in, go to the customs office.
2. Present the completed forms, original store receipts, passport, and proof of departure from the country (ticket).
3. You may be asked to show the purchased goods.
4. Get a customs stamp on the receipts.
5. Proceed to the departure area where the TAX FREE and GLOBAL BLUE desks are located.
6. Present the stamped receipt and receive your money in cash or on your card.
At Paphos Airport:
The procedure is similar to Larnaca: before check-in, visit the customs office, present receipts, goods, and passport.
After getting the customs stamp, receive your refund at the TAX FREE desk in the departure area.
Useful Tips
– Use electronic kiosks for TAX FREE refunds if available.
– For high refund amounts, the kiosk may request additional inspection of goods by a customs officer.
– If you forget to cash your voucher at the airport, do it back home via postal service or at a representative bank.
VAT refunds in Cyprus are an excellent way to save on purchases during your trip. Adhering to all procedures and requirements will allow you to successfully reclaim part of your expenses, making your trip even more enjoyable. We hope this guide helps you understand the intricacies of TAX FREE refunds in Cyprus and maximizes your benefits from shopping. Happy travels and happy shopping!
