Cyprus extends domestic reverse charge to electronic devices

To tackle VAT fraud, the Cypriot authorities are extending the reverse charge mechanism to electronic devics

Starting on 1 October 2020, domestic reverse charge will apply in Cyprus on sales of electronic devices such as microchips, microprocessors, gaming consoles , tablets and laptops.

The European Commission may allow Member States a derogation from the general rule in order to apply reverse charge on certain products that are often used for fraud purposes. In particular, electronic devices have a small size and large value, hence making it attractive for fraudsters when using the so called “carouse fraud” to use these products.

This type of reverse charge is already applicable in several jurisdictions like  Lithuania, Spain, Latvia, Greece & Germany.

Source Credit: Marosavat.com