VAT in Cyprus applies on the supply of goods or services either in Cyprus or in the European Union. VAT is an indirect tax with special characteristics and any non-compliance with these rules and regulations will lead to costly penalties and fines.
Most of the industry have the right to be registered to VAT although rules apply for the obligation to register to VAT. The main rule for the obligation to be registered to Cyprus VAT is the supply of goods or service for more than €15,600. We advise to contact us to assess when you need to register to VAT.
The standard rate of VAT is 19% which is supplied to all goods and services that are not taxed with the reduced rates of 5% or 9% or zero rate or are exempt from VAT.
VIES Registration
Any taxable person that delivers goods or services to taxable persons in another EU Member State has an obligation to submit VIES forms on a monthly basis.
The Import One Stop Shop (IOSS), a new scheme introduced, regarding distance sales of low value goods imported from third countries. The IOSS simplifies the declaration and payment of VAT.
If you need any assistance to explain to you the VAT rates, rights and obligations, please contact us.
Double Tax Treaties
Cyprus has a wide range of Double Tax Treaties with other countries to avoid international double taxation, that the same profits are taxed in two or more states. An important tool for tax structure of international business with the aim to reduce tax burden and increase investments worldwide are the Double Tax Treaties.
Double Tax Treaties that Cyprus entered are inline with all the articles of the OECD model.
Find a list of Double Tax Treaties of Cyprus in Ministry of Finance using the following link:
https://mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties
If you need to explain to you the terms of a Double Tax Treaty, please contact us.
