VAT is the largest source of budget revenue, deputy minister said at a forum in Nicosia

Deputy Minister to the President Irena Piki stated that VAT is the largest contributor to the national budget at the CYVA forum, which took place on Monday, 3 November 2025, at Ktima Kousiumi in Nicosia.

The forum, organized by the Cyprus VAT Association (CYVA), gathered around 200 delegates and focused on the present and future of value-added tax (VAT). According to Piki, in 2024 VAT amounted to €2.8 billion, equivalent to 38% of the Republic’s total revenue, an increase of 6.8% compared to 2023 and 25.8% compared to the previous year.

Irena Piki noted that VAT affects every citizen and every business, linking the effectiveness of the VAT system to public sector reform goals and the upcoming tax reform aimed at fairer wealth distribution and improving transparency and business competitiveness.

Experts from Cyprus and the EU participated in the forum, including representatives of the EU General Court and the International VAT Association (IVA). The team of the Integrated Tax Administration System of the Cyprus Tax Department reported on the implementation progress of the Tax For All (TFA) system and the functional evolution of the department.

The forum was opened and closed by CYVA Chair Demetra Constantinou, who thanked the delegates for their participation. CYVA was established in 2019 to represent the interests of professionals and businesses on VAT matters.