10 July 2018

Cyprus implements environmental tax plus VAT on plastic bags

Beginning July 1, each lightweight plastic carrier bag sold in Cyprus is now subject to a minimum of €0.05 environmental tax plus 19% Value Added Tax (VAT). Further to the European Union (EU) Directive on harmonization, sellers of goods providing lightweight plastic carrier bags to their customers are no longer allowed to freely distribute these bags. Businesses responsible for the collection of the newly imposed charges that are not in compliance may be subject to strict criminal and administrative penalties.

An Indirect Tax Services group Alert, attached below, provides additional details.

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ATTACHMENT

Document ID: 2018-1369