Cyprus VAT credit policy improvements
- 4 January 2013 | Richard Asquith
The Cypriot tax authorities have confirmed that tax payers will receive VAT credit refunds from their VAT returns in a shortened period, or be entitled to a interest on any outstanding amounts.
From February 2013, the VAT office will be obliged to refund credits within four months of the submission of a VAT return or application for credit. Failure to do so will result in an interest charge, payable to the applicant, based on the official Bank of Cyprus' lending rates. The change has now been incorporated into the existing VAT Law.