Bright Business Solutions & Ideas

VAT Related Services

Email Print

 

Value Added Tax (VAT) is an indirect tax levied on the provision of goods and services in Cyprus as well as on the acquisition of goods from the European Union and the importation of goods into Cyprus.

With respect to purchases from other member states of the European Union, the Cyprus Company do not pay VAT on the importation of goods into Cyprus but instead accounts for VAT using the reverse charge method.

Under the reverse charge method, the company performs a simple book entry in its books by self-charging VAT and at the same time claiming it back, resulting thus in no cost to the company.

Registration is compulsory if:

  • Turnover is in excess of €15.600 (fifteen thousand six hundred Euros) during the 12 preceding months, or

  • Acquisitions in Cyprus from member states in excess of €10.251,61 (ten thousand two hundred fifty one Euros and 61 cents), or

  • Making distance sales from a person established in another member state in excess of €35.000 (thirty five thousand Euros)

  • If it is expected that in the next 30 days the above thresholds will be exceeded

VAT rates

The local V.A.T rates range from 0 % to 15 % according to the category of the good and service offered.

Examples for zero rated goods and services (0%)

  • Supplies of goods to other member states of the European Union

  • Medicines & food

  • Exports

  • International air and sea transport

  • Commissions received from abroad for exportation of goods

Examples of reduced rated goods and services ( 5 %)

  • Books, newspapers and magazines

  • Ice cream, yogurt and similar products

  • Supply of fertilizers & animal foodstuff and seeds

  • Transportation of people & luggage by urban and rural area buses

  • Garbage collection and recycling

Examples of reduced rated goods and services ( 8%)

  • Hotel accommodation fees

  • Rural & private taxi transport services

  • Supplies of goods in catering services except from alcoholic drinks

Exemptions

An example of the goods and services that are exempt from VAT are:

  • Rent

  • Medical services

  • Insurance services

VAT declaration

The VAT returns must be submitted quarterly and the payment of the VAT due, if any, must be effected within 40 days from the end of each respective quarter.

Services that we offer:

  • Maintaining VAT records

  • Submitting the quarterly VAT returns to the V.A.T authorities

  • VAT planning and advice

  • Assistance in investigations made by the VAT authorities

  • Assistance in the situation of additional taxes claimed and penalties imposed by the VAT authorities

  • Liaising with the VAT authorities

 

Client Login