VAT

VAT registration

A person is obliged to register if:

  1. At the end of any month the value of taxable supplies for the last 12 months exceeds €15.600, or

  2. At any time, when there are reasonable grounds to believe that the value of taxable supplies in the next 30 days from that point of time will exceed €15.600

  3. At any time, it makes supply of services to a taxable person in another EU member state which are taxable where that person is established

VAT returns

Registered persons must file a VAT return and pay any VAT due every three months. 

When there are transactions with other EU countries a monthly VIES or Intrastat form will also need to be submitted.

 

VAT rates

 

  • Standard rate – 19%

  • Reduced rate – 9%

  • Reduced rate – 5%

  • Zero rate – 0%

Penalties and interest

  • Late registration and/or deregistration – €85 for every month of delay

  • Late submission of return – €100 for each return

  • Late payment of VAT – 10% plus interest

  • Late submission of Intrastat form – €15 for each return

  • Late submission of VIES return – €51 for each return.

VAT rules for e-commerce

As of 1 July 2021 the following VAT rules on e-commerce are applicable in Cyprus:

  • Online sellers can register in one EU member state for the declaration and payment of VAT on all distance sales of goods and services to customer within the EU, through the One Stop Shop (OSS).

  • Existing thresholds for distance sales of goods within the EU are abolished and a new EU-wide threshold of EUR10.000 has been introduced.

  • Online marketplaces/platforms facilitating supplies of goods are deemed for VAT purposes to have received and supplied the goods themselves (“deemed supplier”).

  • The VAT exemption applicable so far on importation of small consignments of a value up to EUR 22 (in Cyprus EUR 17) is abolished. All goods imported in EU/Cyprus are now subject to VAT

  • A new special scheme, the Import One Stop Shop (IOSS) has been introduced, regarding distance sales of low value goods imported from third territories or third countries to simplify the declaration and payment of VAT.

  • Introduction of simplification measures for distance sales of imported goods in consignments not exceeding EUR 150, in cases where the IOSS is not used.