VAT in Cyprus
VAT is a tax charged on most of the business-to-business and business-to-consumer transactions in all member states of the European Union, as well as a growing number of other countries.
Cyprus is a member of the European Union. The significant feature of Cyprus legislation is the Cyprus Value Added Tax Law 95(I) of 2000 (“the VAT Law”), which has been updated in accordance with EU law. VAT legislation is also interpreted using secondary legislation and regulations. The main VAT legislation are the Value Added Tax (General) Regulations of 2001.
Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Cyprus is conveniently located right here!
Selling in Cyprus?
Cyprus – Scope of Taxation
VAT, as a general consumption tax, should apply to all consumption. As a result, exemptions must be limited and strictly interpreted. As a neutral tax, it should not influence commercial decisions. There should be equal VAT treatment for similar supplies. Further, the entire burden should fall on the final customer, with the entrepreneur freed from VAT cost using the mechanism of deductions.
VAT is charged on the following types of transactions:
- A taxable person’s provision of goods or services in Cyprus.
- A taxable person’s intra-Community procurement of goods from another EU Member State.
- The importation of items from outside the EU, regardless of the importer’s status.
Taxable persons include:
- Independent entities who carry out economic activity.
- Non-commercial entities such as public bodies carry out an economic activity of commercial value.
A transaction is considered taxable for Cypriot VAT purposes, if performed within Cyprus and not exempt. According to Cyprus VAT legislation, a transaction is considered exempt if any of the following conditions are met:
- It is carried out by a nontaxable individual.
- It is carried out in another country; or
- It has nothing to do with the taxable person’s business activities and is not done to further those activities.
Download the Cyprus VAT Guide
Cyprus – General VAT information
| National Legislation | Ministry of Finance, Tax Department |
| VAT in local language | Φόρος Προστιθέμενης Αξίας |
| VAT number format
|
CY+9 characters. The last character must always be a letter. |
| CY12345678X | |
| VAT rates
|
Standard 19%; Reduced 9% and 5% |
| Zero-rated (0%) and exempt | |
| Frequency | Quarterly and annual returns |
| Thresholds | |
| Registration | |
| Established | EUR 15,600 |
| Non-established | None |
| Intra-Community acquisitions | EUR 10,251 |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines
|
|
| VAT Return | Quarterly- 10th day of the second month following the end of the quarter. |
| European Sales Listing | 15th day of the month following the end of the tax period |
| Intrastat | 10th day following the end of the month to which the Intrastat statement relates |
| Annual Return | On or before July 31 of the year following the annual reporting period (may be extended under some conditions) |
Last Updated: 21/06/2022
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax