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Cyprus VAT rise implementation

  • Jan 16, 2014 | Richard Asquith

Cyprus VAT rise implementation

Following this week's  1% rise in Cypriot VAT to 19%, guidance on the VAT increase has been issued.  There was also an increase in the reduced VAT rate (transport of passengers, hotels and restaurants) from 8% to 9%.

Change of VAT rate, credit notes and pre-payments

In basic terms, the new, higher rate must be applied on the supply of any goods or services on or after 13 January 2014.  Any pre-payments must be at the new rate, too.   Payments for services or goods after 13 January for supplies completed prior to this date should be at the old, 18% VAT rate.

Any credit notes issued in the future on invoices at the old 18% rate should use the 18% rate is applied when the goods were supplied.

Companies holding stocks must perform full stock takes, which should be retained for inspection by the tax authorities for six years.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara