Cyprus – Extension of the 0% VAT rate on some essential products
Country Briefs
Cyprus
22 May 2024
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Whether you’re a European or non-European company, establishing certain activities in Cyprus may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Cyprus.
If you deal with companies in Cyprus, you may be able to claim a Cypriot VAT refund.
In this VAT guide, we have brought together the specific features of the Cypriot regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
Basic information |
|
|---|---|
| EU membership | 2004 |
| ISO code | CY |
| VAT introduced in Cyprus | 1992 |
| VAT name in Cyprus | Value-added tax (VAT) |
| VAT ID format in Cyprus | CY99999999L |
| Territories with special status in Cyprus | n/a |
VAT rates in Cyprus |
|
| Standard VAT rate | 19 % |
| Reduced VAT rate (1) | 9 % |
| Reduced VAT rate (2) | 5 % |
| Super reduced VAT rate | n/a |
| VAT parking rate | n/a |
| Zero VAT rate | yes |
Thresholds triggering VAT reporting obligations in Cyprus |
|
|---|---|
| Intrastat threshold at introduction | EUR 320,000 |
| Intrastat threshold on dispatch | EUR 75,000 |
| Distance selling threshold | As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales. |
Reporting frequency in Cyprus |
|---|
| Intrastat return | |
|---|---|
| EC Sales List (ESL) return | monthly |
| VAT returns | monthly, quarterly |
|---|---|
| Reporting currency | EUR |
VAT-related penalties in Cyprus |
|
| Failure to file a VAT return | A fine of 100 euros per declaration. |
| Late payment of VAT | Penalty of 10% of the amount of VAT due and interest on late payment of 1.75% per year. |
| Failure to report ESL/DEB | A fine of 50 euros per declaration. |
Useful links on VAT in Cyprus |
|
| Tax Administration in Cyprus | Tax authorities |
| Ministry of Finance in Cyprus | Ministry of Finance |
| Check a VAT number in Cyprus | Check a VAT number |
| EU VAT Guide | EU VAT Guide |
|---|
Need VAT assistance in Cyprus? Contact us now.
A foreign company carrying out transactions in Cyprus subject to Cypriot VAT, may be required to appoint a tax representative. Established in Cyprus, the fiscal representative will fulfill the company’s VAT obligations to the Cypriot tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Cyprus.
Intra-Community and Cypriot VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Cyprus, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Cyprus? Contact us now.
The VAT rates currently in force in Cyprus are as follows:
Need a tax representative in Cyprus? Contact us now.
Do you need a VAT fiscal representative in Cyprus? Certain operations may require VAT registration and the filing of VAT returns in Cyprus:
To check whether your activities give rise to VAT obligations in Cyprus, use our VAT simulator .
Need a VAT tax representative in Cyprus? Contact us now.
In Cyprus , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Cyprus? Contact us now.
You may need a VAT number in Cyprus to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification.
Cypriot VAT is named Value-added tax (VAT)and the VAT numbers in Cyprus have the following structure: CY99999999L.
The administrations in charge of VAT in Cyprus are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Cyprus, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Cyprus, use our VAT simulator or contact us.
Companies with a VAT number in Cyprusmust complete and file dVAT decl arations in Cyprus detailing all taxable income (sales) and expenses (costs), at regular intervals:monthly, quarterly .
Failure to comply with the deadlines imposed by the Cypriot authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Cyprus:
Need VAT assistance in Cyprus? Contact us now.
In addition to VAT returns, companies may be required to provide the Cypriot authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Cyprus can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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