Cyprus VAT

Detailed VAT guidelines and rules for Cyprus. VAT returns, VAT rates, registration thresholds and more.

Cyprus VAT 2023 rates - registration & filing

1 Cyprus VAT rates in 2023

Different VAT rates apply to different goods and services. The current VAT rates in Cyprus are:

VAT %	Rate	What the rate applies to
19%	Standard rate	The standard VAT rate is 19% and it applies to all goods and services not taxed at the reduced or zero rates, or are VAT exempted.
9%	Reduced rate	The reduced rate is 9%. It applies to accommodation in the hotel sector and establishments with a similar character (hostels, motels, Airbnb), as well as cafes, restaurants and catering services including
5%	Reduced rate	The second reduced VAT rate is 5% - this applies to services of writers, composers and artists, the supply of certain medicines and vaccines, food for human consumption, takeaway
0%	Zero rate	Zero-rated supplies include, the export of goods, services related to the import of goods from non-EU Member States, the supply, hiring and repair of sea-going vessels and aircraft, the supply

Exempt goods and services

There are some goods and services on which Cyprus VAT is not charged, including:
- financial and investment services
- insurance transactions
- management of mutual funds
- hospital and medical care
- education
- social welfare
- cultural services
- postage stamps and services
- lotteries ^{ref. Law 95(I)/2000 Schedule 7 / §26}
- letting of immovable property under certain conditions ^{ref. Law 95(I)/2000 Schedule 8 / §39}

VAT scope

A transaction between two parties falls within the scope of Cyprus VAT if it fulfils all of the following criteria:
- the place of supply is considered to be Cyprus
- the supply is taxable
- made by a taxable person
- in the course of business
- for a consideration

What is VAT?

Value Added Tax (VAT) is a tax on consumer expenditure and classified as an indirect tax.

The principle of VAT is that it should be paid on the consumption of goods and services by the final consumer. The tax, however, is not only collected at the final point of consumption but at the intermediary stages by VAT registered businesses who charge VAT their customers at each stage of production and distribution and account for it to the Tax Department.

2 VAT registration requirements

Who is required to register for VAT
VAT registration applies to all taxable persons who independently engage in economic activity and supply or are deemed to supply goods or services that are subject to VAT at standard, reduced or zero rates ("taxable supply"). A "taxable person" may be individuals (self-employed or partnerships) or legal entities (companies, joint ventures, clubs, charities, societies etc.).

Compolsory registration

VAT registration threshold

€15,600

A business based in Cyprus is required to register for VAT in any of the following events:

at the end of any month, the value of taxable supplies for the previous 12 months exceeds €15,600 (historic test)
at any time, where there are reasonable grounds to believe that the value of taxable supplies in the next 30 days will exceed €15,600 (future test)
makes intra-Community supplies of goods or services, to another VAT registered business (B2B), regardless of the value of the supply (intra-Community supplies)
within a calendar year acquires goods, from VAT registered businesses established in other EU Member States, the value of which exceed the intra-Community acquisition threshold of €10,251.61 and the goods were shipped to Cyprus. The VAT registration requirement also applies in the case there are reasonable grounds to believe that the value of acquisitions in the following 30 days, will exceed the acquisitions registration threshold (intra-Community acquisition of goods)

A business based in another EU Member State has an obligation to register for VAT in Cyprus in the following case:

supplies and has responsibility for the delivery of goods, other than new means of transport, to any person in Cyprus who is not registered for VAT. This may include not only private individuals but also, charities, public bodies and businesses too small to register or with activities that are exempt (universities, banks etc.). VAT on such sales are typically subject to VAT in the home country of the seller; however, once the Cyprus distance sales threshold of €35,000 is breached, the supplier is liable to register in Cyprus and charge Cyprus VAT.

Voluntary registration

A business which makes taxable supplies may decide to register for VAT even if the taxable turnover is below the VAT registration threshold of €15,600. Voluntary registration is beneficial in particular if the business wants to recover input tax (VAT on purchases) but has not reached yet the registration limit.

EU Member States

The 27 EU Member States are:

Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Rep.
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden

3 VAT registration procedure

How to register for VAT
Registering and obtaining a Cyprus VAT number is done by applying to the Tax Department using application forms TD.2001A and TD.1101E and providing the following supporting documentation:
- certificate of incorporation
- certificate of directors and secretary
- certificate of registered office address
- certificate of shareholders
- copy of identity cards or passport of signatory
- evidence confirming that the value of taxable supplies has exceeded the registration threshold.

In the case of voluntary registration, the business should provide evidence that it carries out taxable supplies (for example, a copy of the agreement with clients, invoices, details of contracting parties etc.).

The Tax Department assigns a VAT number to the applicant on the same day of receiving all required documents and will issue and post the official VAT certificate within 30 days.

Cyprus VAT certificate

4 VAT return periods, filing and payment deadlines

VAT returns cover three (3) calendar months and are due for submission within one (1) month and ten (10) days following the end of the reporting period. The filing of the actual VAT return is done electronically via TAXISnet and registration to TAXISnet for VAT can be made online.

There are three VAT reporting periods groups and upon VAT registration a business is assigned to one, depending on its economic activity (NACE code).

Group A	Deadline
1 Jan - 31 Mar	10 May
1 Apr - 30 Jun	10 Aug
1 Jul - 30 Sep	10 Nov
1 Oct - 31 Dec	10 Feb

Group B	Deadline
1 Feb - 30 Apr	10 Jun
1 May - 31 Jul	10 Sep
1 Aug - 31 Oct	10 Dec
1 Nov - 31 Jan	10 Mar

Group C	Deadline
1 Mar - 31 May	10 Jul
1 Jun - 31 Aug	10 Oct
1 Sep - 30 Nov	10 Jan
1 Dec - 28/29 Feb	10 Apr

When a reporting period results in VAT that is due, it has to be also paid by the submission deadline. If the due date falls on a weekend or public holiday, the due date for filing and payment is moved to the next working day.