Issued by the Tax Department of the Ministry of Finance of the Republic of Cyprus outlines the VAT treatment of entry rights to various events, especially when combined with restaurant or catering services.
1. VAT Rate of 5% – Entry Rights
According to the VAT Law, the right of entry (ticket purchase) to cultural events such as performances, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, and exhibitions is subject to the reduced VAT rate of 5%.
Examples:
- Concert ticket sold at different prices depending on seating, without food or drink included → 5% VAT applies.
- Entry to a concert in a hotel or entertainment venue without catering services → 5% VAT applies.
2. VAT Rate of 9% – Restaurant and Catering Services
When entry includes food or drink (e.g., dinner, platters, beverages), the entire transaction is considered a combined service and is taxed at the reduced VAT rate of 9%.
Examples:
- Sunday buffet with live music → 9% VAT applies.
- Festive dinner with live performance → 9% VAT applies.
- Dinner with a famous singer, priced higher due to artist cost → 9% VAT applies, regardless of seating price differences.
If food or drink is charged separately from entry, then entry is taxed at 5% VAT and food/drink at 9% VAT.
Example:
- Concert ticket includes a drink (from a list of 6 options) and a small snack, with no option to buy a ticket without the drink → 5% VAT applies to the full ticket price.
3. VAT Rate of 3% – First Performances (Premieres)
From 21 July 2023, the first public performance (premiere) of theatrical, musical, dance, or classical works is taxed at 3% VAT.
Conditions:
- Applies only to the first performance within Cyprus.
- Subsequent performances → 5% VAT.
- Does not apply to concerts or musical events in entertainment venues
4. VAT Exemption – Cultural Services by Non-Profit Entities
Services of a cultural nature provided by public law organizations or non-profit cultural organizations managed without remuneration are exempt from VAT, provided they do not distort competition.
Examples of exempt services:
- Public libraries, archives.
- Entry to museums, galleries, monuments, botanical and zoological gardens.
- Theatrical, musical, choreographic, and cinematic performances.
- Organization of exhibitions and lectures.
If a municipality or charity organizes an event with entry fees that may distort competition, VAT registration and payment obligations must be assessed.