2024 Guide – VAT in Cyprus

Appoint a fiscal representative in Cyprusand make sure to be 100% VAT compliant

VAT in Cyprus

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.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

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”.

Why entrust your VAT obligations in Cyprus to a tax representative?

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.

For VAT compliance in Cyprus, choose EASYTAX

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.

Cyprus joined the European Union in 2004 and the Eurozone on 1st January 2008.

Due to a modest industrial base, Cyprus’ economy relies on services – banking and financial services, and tourism – for almost half of its GDP.

The Cypriot VAT legislation, in force since 1992, is based on the VAT Law 95(I)/2004 of 1st May 2004, as well as on the European Directives.

The VAT rates currently in force in Cyprus are as follows:

  • 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

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.

When do e-sellers need to register for a VAT number in Cyprus?

In Cyprus , as in other European Union countries, e-sellers must register for VAT:

  • when the overall threshold for intra-Community distance selling of 10,000 euros is exceeded, and they have not opted to pay VAT in Cyprus via the One Stop Shop.
  • or when they hold a stock of goods in Cyprus and must report the stock supply transactions.

What are the VAT obligations for e-traders in Cyprus ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT rates in Cyprus: standard rate (19 %), reduced rates 1 and 2 (9 % and 5 %).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Cyprus.

Find out more:

Need a VAT tax representative in Cyprus? Contact us now.

Why identify yourself to VAT in Cyprus?

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.

How do I get a VAT number in Cyprus?

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:

  • Penalties for failure to file a VAT return in Cyprus: A fine of 100 euros per declaration.
  • Penalties for late payment of VAT in Cyprus: Penalty of 10% of the amount of VAT due and interest on late payment of 1.75% per year.

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:

  • Intrastat returns enable the Cypriot authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introduction in Cyprus (EUR 320,000 excl.VAT per annum)
    – Intrastat threshold on dispatch in Cyprus (EUR 75,000 excl.VAT per annum).
    Failure to comply with the deadlines imposed by the Cypriot authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Cyprus are for tax purposes.
    Failure to comply with the deadlines imposed by the Cypriot authorities for the filing of these ESL returns wil incur a penalty payment for the company.

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:

  • The company is established within the European Union or not, is already registered for VAT in Cyprus, or is obliged to register for VAT in Cyprus. In this case, it must apply for a VAT refund via the periodic VAT return filed in Cyprus, according to a periodicity: monthly, quarterly .
  • The company is established within the European Union, is not registered for VAT in Cyprus and is not required to do so. In this case, a VAT refund should be requested via the electronic portal of the tax authorities in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Cyprus. In this case, they must use the services of a fiscal representative to carry out what is required by the Cypriot authorities on their behalf.
    > Learn more about our VAT recovery services.

Rely on our VAT recovery services in Europe. Contact us today.


*This information is subject to change without notice.

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