Cypriot VAT rates and VAT compliance

Businesses registered for VAT in Cyprus must apply the correct VAT rate to taxable supplies and remit the tax to the Tax Department by submitting periodic VAT returns.

A VAT number is required for businesses carrying out taxable activities in Cyprus.

Cyprus-established businesses must register for VAT once annual taxable turnover exceeds EUR 15,600 within a 12-month period. Below this threshold, registration is not mandatory unless specific taxable transactions trigger compulsory registration.

Non-established (foreign) businesses making taxable supplies in Cyprus must generally register for VAT from the first taxable supply unless the reverse-charge mechanism fully applies. There is no turnover threshold for nonresidents.

For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of EUR 10,000 applies. Once exceeded, VAT must be charged in the member state of consumption, and the supplier may register locally or elect to use the OSS scheme. 

Get more information on VAT registration in Cyprus.

• EC Sales Lists (EU Sales Lists)
• Intrastat declarations (for intra-EU goods movements above thresholds)
   

All filings are submitted electronically through the TAXISnet system.

Get more information on VAT returns in Cyprus.

Foreign businesses storing goods in Cyprus must consider VAT registration if those goods are held for sale.

Holding inventory in Cyprus for resale typically triggers VAT registration obligations. Imports from outside the EU may also trigger VAT registration, particularly where the foreign business acts as importer of record.

Cyprus applies EU call-off stock simplification rules in line with the EU VAT Directive.

• Import VAT is due at customs clearance.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.

Foreign businesses supplying digital services (telecommunications, broadcasting, and electronically supplied services) to Cypriot consumers must charge VAT once the EUR 10,000 EU-wide B2C threshold is exceeded unless they elect to use the One-Stop Shop (OSS) scheme.

The standard VAT rate of 19% generally applies. Businesses must register for Cypriot VAT or use OSS depending on their cross-border supply model.

EU-established businesses may reclaim Cypriot VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year.

Non-EU businesses may reclaim Cypriot VAT under the 13th Directive refund procedure, subject to reciprocity and documentation requirements.

Some foreign businesses making only reverse-charge supplies may not be required to register locally and may instead rely on simplified recovery mechanisms.

Cyprus applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met.

• Reporting is typically monthly once thresholds are exceeded.
• Filings include commodity codes, values, quantities, and partner member state details.
• Submissions are made electronically through the designated statistical reporting systems.

• Customer VAT identification numbers
• Total value of goods or services supplied
•  Transaction type
   

ESLs must be filed electronically with the Tax Department, generally on a monthly basis.

• Supplier and customer details
•  VAT number(s)
• Description of goods or services
• VAT rate(s) and VAT amount
   

Time-of-supply rules:
 

• Goods: VAT generally becomes chargeable when the goods are delivered or when the invoice is issued, whichever occurs first.
• Services: VAT is generally due when the service is supplied or when payment is received, depending on the circumstances.
• Imports: VAT is due at customs clearance.

VAT records must generally be retained for at least six years. VAT returns and payments are due by the statutory deadlines (generally quarterly).