Cyprus adds household photovoltaic systems for self-consumption to the Twelfth Schedule of the VAT Law (K.D.P. 363/2026)

What changed in detail

Cyprus’s Council of Ministers issued the Value Added Tax (Amendment of the Twelfth Schedule) Order 2026 (Κ.Δ.Π. 363/2026), published in Official Gazette Annex III(I) No. 6053 on 16 October 2026. It is made under section 18A(2) of the VAT Law, which allows the Council of Ministers to amend the Twelfth Schedule by order.

The order inserts, immediately after paragraph 5 of the Twelfth Schedule, a new paragraph 6 covering photovoltaic systems of domestic customers, as defined in the Electricity Market Regulation Law, for self-consumption of electricity in their homes.

The Twelfth Schedule is the list of supplies that section 18A of the VAT Law charges at the reduced rate of 9%.

The order as published contains no separate commencement or expiry clause.

What it means

Supplies of residential photovoltaic systems for self-consumption now fall within the Twelfth Schedule, so they belong on the Twelfth Schedule rate code rather than the standard rate. The scope is narrow: it turns on the buyer being a domestic customer under the electricity market law and on the system serving self-consumption in the home, so commercial installations and systems that are not for self-consumption are outside the new paragraph. Because the order states no start date of its own, confirm from the Tax Department when suppliers should begin applying it before changing invoices.