In Cyprus, individuals who are obligated to register for VAT, as well as those who wish to register voluntarily, may do so by submitting a “Registration Application” to the VAT Register along with all necessary documentation as required by the VAT authorities. This application should be directed to the VAT Service. If the submitted documentation is comprehensive, the registration process can be completed within a single working day. However, it’s important to note that VAT registration cannot be completed electronically; electronic submission is only applicable for the VAT Information Exchange System (VIES).

Individuals or entities in Cyprus must register for VAT if they meet any of the following criteria:

• Their sales of goods or services in Cyprus exceed the VAT registration threshold of 15,600 euros annually.

They are incorporated in Cyprus or possess a fixed establishment in Cyprus from which they supply goods and/or services to taxable entities within the EU, regardless of the transaction volume.

• They receive services from any location worldwide that are eligible for the reverse charge mechanism and the value exceeds the VAT registration threshold.

Voluntary Registration 

Individuals or entities with a permanent establishment in Cyprus, who provide taxable supplies, have the option to register for VAT even if the value of those supplies does not exceed the VAT registration threshold.

Furthermore, voluntary registration is available for businesses that intend to make taxable supplies to further their operations, or those that offer goods and services outside of Cyprus, which would be subject to taxation if they occurred within Cyprus.

Farmers, as well as individuals who acquire goods or services in Cyprus from other member states and distance sales that do not exceed Cyprus’ threshold, are also eligible for voluntary registration, regardless of the value of their supplies or acquisitions in a calendar year.

Group and Divisional Registration

 Group Registration

According to Article 32 of the VAT Law of Cyprus, under certain circumstances, two or more individuals or entities can join their businesses for VAT purposes and be considered a single taxpayer. However, group registration for VAT is not mandatory in Cyprus and businesses have the option to register as a group if it benefits their operations.

Conditions outlined in Article 32 of the VAT Law of Cyprus:

• Condition 1: The businesses may form a group for VAT purposes if one member exercises control over the others. This means that one member has the power to make decisions that affect the operations of the other members.
• Condition 2: Alternatively, if a natural or legal person exercises control over all of the members, they may form a group for VAT purposes. This means that the person has the power to make decisions that affect the operations of all members.
• Condition 3: Lastly, if the companies are controlled by a partnership, they may form a group for VAT purposes. This means that the partnership has the power to make decisions that affect the operations of the companies.

It is important to note that group companies must not carry out transactions that fall outside the scope of Cypriot VAT, and applications for VAT group registration may be rejected by the VAT Commissioner if such registration may result in a loss of state revenue.

Divisional Registration

 A company’s divisions in Cyprus have the option to register for VAT independently. In such cases, each separately registered division must submit their own VAT returns. However, the company remains responsible for overall compliance with VAT regulations, and therefore liable for any VAT owed by its divisions. To register separately, each division must submit a separate application accompanied by an explanatory letter.