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!
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.
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:
|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.|
|Standard 19%; Reduced 9% and 5%|
|Zero-rated (0%) and exempt|
|Frequency||Quarterly and annual returns|
|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
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