For the purposes of Cyprus VAT, any individual or entity, regardless of their residency status, can be deemed a taxable person if they engage in business activities and are either registered on the Cyprus VAT register or have a legal obligation to register.
This applies to both natural persons and legal entities. A high level of proficiency is required to accurately comply with Cyprus VAT regulations.
Read below all about VAT registration in Cyprus in our comprehensive guide.
In Cyprus, there are certain exemptions from the requirement to register for VAT, applicable to:
Individuals or entities engaged solely in the provision of exempt supplies, or those not considered to be operating a business, fall outside the scope of compulsory VAT registration.
Any EU-based person who is not a resident trader in Cyprus has the option to appoint a VAT representative in Cyprus to assist with tasks such as maintaining VAT records, filing VAT returns, corresponding with the VAT Commissioner, and paying any VAT due.
The VAT representative must be an entity established in Cyprus. Typically, a trader who carries out distance sales to Cyprus appoints a VAT representative. It’s important to note that the VAT representative is jointly and severally liable with the taxpayer for any failure to comply with the VAT Law.
Additionally, in certain circumstances, the VAT Commissioner may require a person who is not established in the EU, does not have a fixed residence in Cyprus, or (if an individual) has a “usual place of residence” in Cyprus to appoint a VAT representative if they make taxable supplies or intra-Community acquisitions in Cyprus.
As of 1 July 2021, under the EU’s One Stop Shop (OSS) framework, suppliers of specified inbound goods and services to EU Member States are covered by a unique simplified registration regime. This OSS scheme facilitates a unified registration process in just one EU Member State, catering to all eligible supplies throughout the EU. This OSS registration supersedes the Mini One Stop Shop (MOSS) registration that was operational from 1 January 2015 until 30 June 2021, streamlining the process for suppliers engaging in cross-border trade within the EU.
Last Updated: 27/03/2024
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