VAT Compliance

The European Union’s attempts to streamline the VAT regulations across its Member States, have resulted in frequent amendments to the EU and Cyprus VAT regulations. Seeking advice from an expert on VAT issues can help you avoid the incurrence of penalties for late submission or incorrect treatments of transactions and at the same time have knowledge on deadlines, charges and correct application of the legislation.

Value Added Tax (V.A.T.) 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 does not pay V.A.T. on the importation of goods into Cyprus but instead accounts for V.A.T. using the reverse charge method.

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

Registration is compulsory if taxable turnover at the end of any month the value of taxable supplies for the 12 months then ended exceeds €15.600, or, if at any time there are reasonable grounds to believe that the value of taxable supplies in the next 30 days from that point in time will exceed €15.600

Voluntary registration is advantageous where a person wishes to recover input tax on purchases.

Our VAT services include: