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Cultural VAT Clarification: Redefining Combined Event And Catering Charges

Clear Guidelines For A Changing Landscape

The Tax Department has issued a decisive circular that streamlines the application of VAT on cultural events. Circular 6/2025, signed by Tax Commissioner Sotiris Markidis at the beginning of October, endeavors to eliminate inconsistencies and prevent overcharging by clarifying when VAT should be applied on entry to concerts, performances, exhibitions, and other cultural gatherings—especially when admission includes food or drink.

Simplified VAT For Pure Event Admissions

The new directive stipulates that a 5 per cent VAT rate is applicable to admission tickets for concerts, theatrical performances, fairs, circuses, amusement parks, museums, zoos, cinemas, and similar events, provided that catering services are not included. For instance, a concert held in any venue—from a traditional theater to an unconventional beach setup—will only incur the reduced rate if no food or drink is offered with the ticket.

Composite Transactions And The Impact On Pricing

Events where admission is bundled with food, drink, or other catering services are subject to a higher VAT rate of 9 per cent. This classification applies even when the consumer opts not to fully utilize the added amenities. Whether it is a Sunday lunch accompanied by live music or a dinner show featuring a notable performer, the entire package is taxed at the higher rate if catering forms a substantial component of the offer.

Guidance On Separate And Combined Charges

The circular further clarifies that if an event organizer charges separately for admission and catering, each component retains its respective VAT rate—5 per cent for entry and 9 per cent for catering. Moreover, optional and distinctly priced catering allows the reduced rate on the admission ticket to remain unaffected, ensuring equitable treatment for both consumers and organizers.

Special Provisions For Premier Performances And Cultural Organizations

A notable adjustment introduced in the circular is the application of a 3 per cent VAT rate on the inaugural public performance of theatrical, musical, or dance events, with subsequent shows taxed at the standard 5 per cent. However, musical events in entertainment venues continue to be governed by the rates applicable to whether food or drink is provided. Additionally, cultural services delivered by public law bodies or non-profit organizations remain VAT exempt, thereby safeguarding their public service impetus.

Considerations For Organizers And Municipalities

The guidance also advises that municipalities, local authorities, and charitable foundations carefully evaluate their VAT registration and payment obligations when organizing ticketed events. This precaution is necessary to avoid inadvertently distorting competition with private sector organizers, which could lead to unforeseen fiscal consequences.

Conclusion

This circular represents a significant step toward ensuring consistency and fairness in VAT application within the event and cultural industries. By clearly delineating the conditions under which varying VAT rates apply, the Tax Department has provided both clarity and predictability—a welcome development for businesses, event organizers, and consumers alike.

Cyprus-Based ASBIS Hits Record $1.05bn In Monthly Revenue, Up 216% Year On Year

The technology distributor ASBIS Group, headquartered in Limassol, has exceeded $1 billion in monthly sales for the first time in its history, reporting preliminary consolidated revenue of $1.05 billion in September 2026, more than three times the amount recorded a year earlier.

The figure represents a 216% increase from $332 million in September 2025, making it the highest-revenue month in the company’s history.

ASBIS reported its strongest sales growth in servers and server components, while CEO Serhei Kostevitch pointed to growing demand for artificial intelligence solutions and computing infrastructure as an opportunity for the business.

For a company operating across Europe, the Middle East and Africa, September marked a new sales milestone following several months of substantial year-on-year growth.

Kostevitch attributed the record performance to the group’s existing operations, highlighting its broad product portfolio, international market presence and strong relationships with manufacturers and trading partners.

“Most importantly, this result is the outcome of our regular operating activities,” he said.

The CEO also highlighted the company’s portfolio of projects as a reason for confidence in continued AI-related development.

However, the group’s growth was not limited to AI-related technologies. Smartphones also performed strongly in September, with Kostevitch stressing that “we are growing beyond the AI segment as well.”

Kazakhstan, the United Arab Emirates and Ukraine accounted for the largest shares of ASBIS’s September revenue, followed by Slovakia and Poland.

Growth Follows Record First Half

September’s results follow a period of strong financial performance for ASBIS.

In July, the company reported preliminary consolidated revenue of $531 million, an increase of 89% compared with the same month in 2025. August brought a further rise to $604 million, up 91% year on year.

September’s $1.05 billion figure represents a substantial increase on both months, although the company has not provided a detailed breakdown explaining the acceleration.

The results also follow a record first half of 2026, when ASBIS generated approximately $2.97 billion in consolidated revenue, up 76% year on year.

Net profit after tax reached $80.6 million, compared with $19.4 million in the same period in 2025.

The second quarter was particularly strong, with revenue reaching $1.69 billion, an increase of 78.7%, while quarterly net profit more than tripled to $44.3 million.

ASBIS has emphasised that its September revenue figures are preliminary estimates and may differ from the final reported results.

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