Provision of VAT Services in Cyprus

Accounts are prepared annually, usually for each calendar year in line with the tax year, but there is no objection to another year end date being chosen. The company’s first accounts may be prepared for any period up to 18 months. Audited accounts must be submitted to the Income Tax Department and to the Registrar of Companies within a year of the tax year-end. Accounts are required to be prepared to International Financial Reporting Standards (IFRS).

VAT in Cyprus was introduced on 1 July 1992 and it is administered by the Tax Department within the Ministry of Finance.

VAT is an indirect expenditure based tax on the consumption of goods and services. It is charged on the taxable supply of goods and services in Cyprus by a taxable person in a course of a business carried on by him. Taxable person refers to sole traders, partnerships, limited companies, clubs and associations that are making taxable supplies.

Compulsory VAT Registration

  • taxable supplies in previous 12 months exceeds €15,600
  • taxable supplies in next 30 days exceeds €15,600
  • business providing/receiving or anticipates to provide/receive services into VAT registered persons in any member State in European Union

Voluntarily VAT Registration

A person may register with VAT voluntarily, provided that he is making or intending to make taxable supplies.

Exemption from registration

  • Person making a taxable supply which are all zero rated
  • Exempt Supplies, which includes:
    • Postage stumps
    • Hospital and medical care
    • Social welfare and social security work
    • Educational Services
    • Cultural services by public bodies or non-profit making organizations
    • Financial transactions
    • Lotteries
    • Rental income from immovable property

VAT Rates

  • Standard Rate – 19%
  • Reduced Rate – 9%
  • Reduced Rate – 5%
  • Zero Rate – 0%

VAT Returns

The VAT Return must be submitted not later than 40 days of the month following the end of the return period and the balance between the VAT output and the VAT input must be paid.

De-Registration of VAT

  • Compulsory deregistration is required if a person ceases to make taxable supplies
  • A person can voluntarily deregister if there is an evidence that taxable supplies in the next 12 months will not exceed €13,688


As from 1 January 2010 whether there is a sale of goods or provision of services in other member states enterprises are liable to submit VIES Return electronically on the 15th day following the end of each month.

If resident or non-resident companies move goods across the Cyprus national border to or from other EU countries, there may be a requirement to complete monthly Intrastat reporting.

Intrastat returns only need to be completed once the reporting thresholds are exceeded.  The thresholds, which cause the obligation to make the more detailed monthly return, are currently €100,000 for Arrivals (Imports) and €55,000 for Dispatches.

Monthly Intrastats should be filed at the 10th of the month following the movements.