VAT in Cyprus

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Cyprus VAT

Cyprus comes under the EU VAT rules and is part of the EU single market economy. VAT Directives are issued by the EU, laying out the principles of the VAT regime to be adopted by the member states, including Cyprus. These Directives take precedence over the local legislation.

Cyprus VAT law

Cyprus introduced VAT in 1992 and it is administered by The VAT Service (customs and excise).

Cypriot VAT registration

There is a VAT registration threshold of €15,600 (per 12 month period) in Cyprus. A non-established, non-EU business making supplies in Cyprus may be required by the Cypriot tax authorities to appoint a tax representative, who will be personally liable for any unpaid VAT.

Registering for Cypriot VAT generally takes around four to six weeks from the date when the application has been submitted, although this can vary.

Cyprus VAT compliance

There are detailed rules controlling the recording and processing of Cypriot transactions. These include guidelines on:

  • Cypriot invoice requirements
  • foreign currency invoicing and reporting
  • correcting errors in previous returns
  • what records must be kept.

Cypriot VAT rates

The standard VAT rate in Cyprus is 19%. There are reduced rates of 9% (including tourist accommodation, tourist transportation by taxi) and 5% (including animal feeding stuffs, books, newspapers, medicines).

Cypriot VAT returns

Companies with a Cypriot VAT number must submit periodic VAT returns detailing all taxable supplies (sales) and inputs (purchases). Returns are submitted quarterly by the 10th day of the second month after the tax period end. Payment must also be made at the same time.

Returns can be filed electronically.

Cyprus - Intrastat and EC Sales Lists

In addition to VAT returns, companies may be required to submit extra statistical information. The Intrastat returns and EC Sales Lists must be submitted online.

Cypriot VAT refunds

If a foreign company is not making taxable supplies in Cyprus but is incurring Cypriot VAT on local goods or services, then Cypriot VAT may recovered through a VAT reclaim.

View more information on other countries, or find out more about VAT.