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Cyprus VAT – Rates & Registration

If a company not established in Cyprus is providing ‘taxable supplies’ of goods or services in Cyprus, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Cyprus assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Cyprus. Some of the most common examples are:

  • Importing goods into Cyprus from outside the European Union
  • Buying and selling goods in Cyprus
  • Selling goods from Cyprus which are delivered to customers outside of Cyprus (business or private customers)
  • Acquiring goods in Cyprus from another EU country (Intra-community acquisitions)
  • Holding inventory in Cyprus for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Cyprus where attendees or delegates must pay admission

If you are currently, or plan to conduct any of the above (or similar) transactions in Cyprus, you should contact us immediately for a complimentary consultation.

Cyprus VAT Rates, Formats & Thresholds

VAT Rates VAT Number Format Distance Selling Threshold Intrastat Threshold
19% (Standard) CY12345678X € 35,000 €160,000(Arrivals)
5/9% (Reduced) €55,000 (Dispatches)
VAT return periods

Quarterly

Annual returns

No

EC Sales Lists frequency

Monthly

EC purchase lists

No

Other reporting requirements

No

Extended reverse charge

Cyprus has implemented an extended reverse charge. This applies to supplies of services made by non-established businesses to VAT registered customers in Cyprus as well as some supplies within Cyprus, such as certain construction services. Please contact us if you would like details of how the extended reverse charge applies in Cyprus.

Fiscal Representation

The tax authorities may direct a business established in a country outside the EU to appoint a tax representative to register for VAT in Cyprus.

Contact us for a complimentary consultation.

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