Taxable individuals and businesses in Cyprus are typically required to file their VAT returns using Form VAT 4 and pay any VAT owed on a quarterly basis.
The deadline for filing these returns is the 10th day of the second month following the end of the quarter, although repayment traders may be eligible to submit monthly returns instead. If the due date falls on a weekend or public holiday, an extension is given until the next working day.
Read more about VAT recovery and VAT returns in Cyprus in our comprehensive guide.
In Cyprus, the sum of VAT payable for a specific duration can be lowered, and can even go below zero, by taking into account the credit for Cypriot VAT paid on particular purchases, which is commonly referred to as “input VAT.”
Deductible (recoverable) input VAT can be used to reduce VAT liability in Cyprus if certain conditions are met:
VAT incurred on goods and services that are utilized for non-business purposes or personal use cannot be deducted or recovered as input VAT.
In addition, input VAT cannot be deducted if it pertains to the provision of goods and services utilized for the following purposes:
To maintain neutrality in the EU VAT system, input VAT deduction rules apply, including a de minimis threshold of around EUR 171 per month for exempt supplies. Failure to meet the deduction criteria means input VAT cannot be claimed.
Last Updated: 27/03/2024
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