Cyprus VAT

Cyprus introduced Value Added Tax in July 1992. The rules on Cyprus VAT registrations, returns and compliance are based on European Union EU VAT Directives which Cyprus has transposed into its VAT Act. Cyprus VAT is administered by the Tax Department within the Ministry of Finance.

Foreign companies, or ‘non-resident’ traders, providing goods or services in Cyprus to local businesses or consumers may have to register their business for Cyprus VAT. They will then have to follow the Cyprus VAT compliance rules, including invoicing and VAT rates, as well as pay over any Cyprus VAT due.

Should you register for Cyprus VAT

There are a number of trading situations which typically require a foreign trader to register with the Cyprus tax authorities. These follow the broad EU VAT rules, and include:

  • Importing goods into Cyprus from a non-EU country
  • Transfering goods between Cyprus and other EU member states (intra-community supplies), either as sales (dispatches) or purchases (arrivals)
  • Purchasing and selling goods in Cyprus
  • Selling goods via the web to Cyprus consumers, subject to the Cyprus distance selling VAT registration threshold
  • Goods held in warehouses as consignment stock
  • Holding live exhibitions, events or training in Cyprus
  • If a company is otherwise a non-VAT trader, but is receiving services in Cyprus under the EU reverse charge rule
  • The self-supply of goods

Few companies need to VAT register if they are providing services to local Cyprus companies, and instead can use the Reverse Charge process. This is based on the EU 2010 VAT Package changes.

Note that providers of electronic, broadcast or telecoms services to consumers in Cyprus only have to VAT register in one EU country under the MOSS scheme to file a single return covering all 28 member states.

If you do need to VAT register, read our Cyprus VAT registration briefing to understand the requirements, including the VAT registration thresholds. You can read more about Cyprus VAT returns too.

There may be further exemptions from the requirement to VAT register in Cyprus you should consider.

Latest Cypriot news

EU moves new B2C VAT liabilities to marketplaces 2021

December 12, 2018

On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..

VAT rate changes for 2018

December 20, 2017

Below is a summary of the principle VAT rate changes in the European Union and the rest of the world on 1 January 2018....

Cyprus VAT e-filings compulsory May 2017

December 28, 2016

From 2 May 2017, VAT registered entrepreneurs will be required to file their VAT returns online. The Cypriot VAT reporting portal, TAXISnet, is now...