VATLive > Blog > Cyprus > Cyprus VAT easements for coronavirus crisis

Cyprus VAT easements for coronavirus crisis

  • Feb 11, 2021 | Richard Asquith

11 Feb - December and January return VAT payments, due on 10 February and 10 March, may now opt to instead make 3 installment payments between 10 April and 10 June 2021.

11 Nov - VAT payments due on 10 Nov may now be extended over up to six month through to 10 April 2021 without penalties or interest.

28 Oct - The 2021 draft budget includes plan to allow for defered VAT payments. Also, a proposal to reduce that VAT rate on tourism services from 9% to 5% from 1 July (retrospectively) to 31 Dec 2020. Speeded-up credit repayments. Oblige targeted sectors, like supermarkets, to make advance payments.

22 June - Quarter 2 VAT payments have been delayed. 

28 May, accomodation and catering services VAT rate is to be cut from 9% to 5% from 1 July 2020 until 10 January 2021.

17 April update - a limited number of taxpayers are being switched from quarterly to monthly returns to make advanced VAT payments up until 30 June 2020. They are required to remit the VAT due by the 27 of the month following the reporting month.

Update 31 March VAT payments are delayed until 10 November 2020.

Cyprus implemented on 27 March delays on penalties for Value Added Tax payments for all businesses. This is an update as previously only businesses below €1 million turnover or with a 25% reduction in turnover were eligible for postponements. However, some industries are excluded.

There will be no penalties or overdue interest on the February, March and April returns due on the 10th of the second month following the reporting month. However, the returns must still be filed on time.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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