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VAT in Cyprus

VAT Guide for EU countries within Europe

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.

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.

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 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

Intrastat declaration
EC Sales List (ESL) declaration monthly
VAT returns monthly, quarterly
Reporting currency EUR

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
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 current VAT rates 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 no

Certain transactions in Europe may require registering for VAT and filingVAT returns in Cyprus:

To check if your activities involve VAT obligations in Cyprus, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Cyprus?

In Cyprus just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the 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 ratesin 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.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

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. 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.

How do I get a VAT number in Cyprus?

The administrations in charge of in Cyprus VAT are the following: Tax authorities, Ministry of Finance.

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:

  • Penalties for failure to file a VAT return in Cyprus: Penalty of EUR 51 per late declaration
  • Penalties for late payment of VAT in Cyprus: Penalty of 10% of the amount of VAT due and late payment interest of 3.5% per year

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 introductio n in Cyprus (180 000 EUR HT/an)
    – Intrastat threshold on dispatch in Cyprus (55 000 EUR HT/an).
    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.

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:

  • The company, whether it 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 tax authorities’ electronic portal 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.


*This information is subject to change without notice.

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