VAT in Cyprus
Cyprus is a member of the European Union and its primary VAT legislation is governed by the Cyprus Value Added Tax Law 95(I) of 2000, which has undergone amendments to align with EU regulations.
The main VAT regulations in Cyprus are outlined in the Value Added Tax (General) Regulations, 2001. Like its EU counterparts, Cyprus has updated its VAT laws in several respects. The nation adopts three VAT rates: a standard rate of 19%, and lower rates of 9% and 5%.
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 is intended to cover all consumption, necessitating that exemptions be limited and construed narrowly. As a tax that should remain neutral, VAT is designed not to affect business choices, ensuring uniform VAT treatment for comparable transactions and placing the ultimate tax burden on the end consumer.
The foundation of EU VAT law primarily rests on directives, with the principal directive being the EU VAT Directive 2006/112/EC (referred to as the “EU VAT Directive”).
Scope of Taxation
The types of transactions that attract VAT include:
- Transactions involving the provision of goods or services within Cyprus by an individual subject to VAT.
- The procurement of goods from another EU Member State by a person liable for VAT.
- The import of goods from non-EU countries, regardless of the importer’s VAT status.
Taxable entities may include independent organizations conducting economic activities, or non-commercial organizations like governmental bodies undertaking business operations. In Cyprus, a transaction is subject to VAT if it is conducted within the nation and does not qualify for exemption. A transaction is exempt from Cyprus VAT if it meets any of the following conditions:
- It is executed by a person who is not subject to VAT.
- It occurs outside of Cyprus.
- It is unrelated to the business activities of the VAT-liable individual and does not further such activities.
Cyprus – General VAT information
| Tax Authority | Ministry of Finance, Tax Department |
| Currency | € Euro |
| 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 | |
| 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 |
| VAT Group | In Cyprus, group registration for VAT is not compulsory, but rather an optional measure. |
| Voluntary Registration | Voluntary registration is available for businesses in Cyprus even if the value of those supplies does not exceed the VAT registration threshold. |
| 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. |
| Frequency | Quarterly and Annual returns |
| 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) |
| Electronic Invoicing | Electronic invoicing is not obligatory, except for B2G transactions where the receipt and processing of electronic invoices is mandatory.
|
Last Updated: 27/03/2024
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