Tax Free Shopping in North Cyprus

Here’s some fantastic news for all those who come on holiday to North Cyprus, not only has VAT been slashed on many handicraft and souvenir items but you can now shop ‘til you drop and know that you can reclaim every penny of value added tax on all the luxury goods and souvenirs that you buy!

Tax free shopping in North Cyprus is about to become a reality and the only restrictions are that you have to be non-resident (so holidaymakers fill your suitcases) and you have to reclaim the money as you leave the country.

Together with the finance minister Ahmet Uzun, the prime minister of the Turkish Republic of Northern Cyprus made the announcement that should boost tourism last week and already shopkeepers and stall holders can begin applying for permission to sell goods on which shoppers can claim back tax paid.

Luxury items such as the gold and jewellery that North Cyprus is famous for as well as designer clothing, textiles and electrical goods will all fall within the sphere of the scheme meaning that North Cyprus is likely to become a great value destination…and according to the government the ultimate aim of the legislation change is to make TRNC the cheapest country for shopping in the whole region.

Those who wish to make use of tax free shopping in North Cyprus will have to keep their receipts and when they leave the country via Ercan airport or from a ferry port they can apply to the tax offices that are to be set up at such locations for cash or credit card refunds. There will be a minimum amount on which tax can be reclaimed and this will amount to about half of the minimum monthly wage in TRNC which is currently seven hundred and eighty new Turkish Lira or three hundred and thirty pounds.

Because KDV (VAT) will be refunded on everything from clothes, computers, shoes, sunglasses, perfumes, cosmetics, toys and mobile phones it’s going to be quite easy for the majority of people to quickly accrue receipts to the value of around one hundred and sixty five pounds - which means that tax free shopping in North Cyprus is going to become one of the most popular things to do for holiday makers in the very near future and may well boost the number and quality of the retail outlets currently in TRNC. This will benefit residents as well as non-residents, push up the appeal of the island and boost the economy of the North – a win-win situation…well done the government!