CYPRUS VAT

What is Vat

VAT relates to “Value Added Tax”. The VAT is imposed on the selling goods or services and on purchasing goods or services. The VAT on the sale is the “VAT Output” and the vat on the purchase is the “VAT Input”.

What is Vat

Cyprus Vat Rates

Zero rate – 0%
Reduce Rate 1 – 5%
Reduce Rate 2 -9%
Standard Rate – 19%

Major services and goods under reduced rate 2 of 9%
Accommodations, restaurants, catering and services.

Major services and goods under reduced rate 1 of 5%
Foods pharmaceutical, books, newspapers, supply of animal foods and others

Cyprus Vat exemptions
Insurance services, hospital services, postal services and others

What is the difference between zero and exempt

Exempt services are considered non vatable. If you are revenue derives from non-vatable services, you are not allowed to claim any vat input on services or goods you paid and you was charged with VAT.

Irrecoverable Vat

You are not allowed to claim Vat for payments relate to non-business activities, salon car.

Cyprus business through an entity outside Cyprus

If you are doing business in Cyprus and the activity is considered vatable, then you need to register to Cyprus VAT through a representative or open a branch or entity for VAT purposes.

Method of Registration

You can register to VAT on a voluntary basis or on a compulsory basis. You have an obligation to register to VAT if your turnover is above EUR15,600 during the 12 preceding months or you expect to have turnover of EUR15,600 within the next 30 days.

Vat declaration and payment

The deadline of declaration and payment of the vat is the tenth day of the second month that follows the month in which the VAT period ends.

Vat filling method

You can file your VAT return electronically through taxisnet.

Disclaimer: The information provided in this article is for general awareness and is not intended to be and do not constitute a professional advice.