VAT Services

Whilst Cyprus follows the EU rules on VAT compliance, it is still free to set its standard (upper) VAT rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Cyprus must charge the appropriate VAT rate, and collect the tax for onward payment to the Cyprus tax authorities through a VAT filing see Cyprus VAT returns briefing.

Given the complexities of VAT as well as continuous changes in the EU VAT Directive and local legislation, we can assist with full compliance of your transactions in respect of this important area.

We treat each case as unique and care will be taken based on local legislation as well as CJEU cases based on which the law is interpreted broadly.

Once registered for Cyprus VAT, you will have to start following the local rules in a number of aspects. This includes:

• Issuing invoices with the disclosure details outlined in the Cyprus VAT Act.
• Electronic invoices with proper signature, authenticity and agreement by the recipient.
• Maintenance of accounts of record, which must be held for at least 6 years.
• Correct invoicing of customers for goods or services in accordance with the Cyprus time of supply VAT rules.
• Treatment of credit notes and other corrections.
• Application of foreign currency translation rates.

Need help with your Cypriot VAT compliance? Contact Us!