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.
Here you can find the specifics of VAT regulations in Cyprus, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|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||no|
Thresholds triggering VAT reporting obligations in Cyprus
|Intrastat threshold at introduction||180 000 EUR|
|Intrastat threshold on dispatch||55 000 EUR|
|Distance selling threshold||As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.|
Reporting frequency in Cyprus
|EC Sales List (ESL) declaration||monthly|
|VAT returns||monthly, quarterly|
VAT-related penalties in Cyprus
|Failure to file a VAT return||Penalty of EUR 51 per late declaration|
|Late payment of VAT||Penalty of 10% of the amount of VAT due and late payment interest of 3.5% per year|
|Failure to report ESL/DEB||Penalty of EUR 15 if the declaration is filed within 30 days, otherwise a civil fine of up to EUR 2,652.|
Useful links on VAT in Cyprus
|Tax Authorities 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|
The current VAT rates in Cyprus are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Cyprus:
In Cyprus just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
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. To check if your activities require VAT identification in Cyprus, use our VAT simulator or contact us.
VAT Cypriot is named Value-added tax (VAT)and the VAT numbers in Cyprus have the following structure: CY99999999L.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Cyprusyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Cyprus must complete and submit VAT returns in Cyprus detailing all taxable income (sales) and expenses (costs), with the following periodicity: 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:
In addition to VAT returns, companies may be required to provide the Cypriot authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Cyprus can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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