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Value Added Tax 2015

Value Added Tax

 

Imposition of tax

Value Added Tax is imposed on the supply of all goods and services in Cyprus, on the acquisition of goods from Member States and on the imposition of goods from third countries.

Rates

Standard rate                                                                                                 19%

Reduced rates                                                                                               9%/ 5%

Zero rates                                                                                                      0%

 

Standard rate

 

The standard rate applies to the supplies of all goods and services in Cyprus which are not subject to zero rate, the reduced rate or are not exempt.

 

Reduced rate 9%

Tourist, excursions, interurban bus services, transport of passengers by taxi, supply of food and drinks in a restaurant, catering services, sea transport.

 

Reduced rate 5%

Books, newspapers, non-bottled water, supply of food, hotel accommodation, rural and tourist buses, supply of medicines, hairdressing, renovation and repairs, entry fees to theaters,circus,festivals,luna parks,concerts,museums etc , acquisition or construction  of residence (subject to conditions)

 

Zero

Export sales (to countries outside of EU as from 01/05/2004) ship management services. Intra community supplies to EU V.A.T. registered persons.

 

Exempted

Rental of immovable property, hospital and medical caring services, Postal services, Insurance services, Educational services under certain conditions, financial services (with exceptions), disposal of immovable property where the application for building permission has been submitted prior to 1 May 2004.

 

Registration

Every individual or company is obliged to register if:

·  at the end of any month, the value of the taxable supplies recorded in the last 12 months exceeds €15.600 or

·  at any point in time the value of the taxable supplies are expected to exceed €15.600 in the next 30 days.

·  provides services to a VAT registered person within European Union with nil registration threshold

·  offers zero rated supplies of goods or services

·  acquires a company on a going concern basis.

·  a taxable person from abroad makes distance sales with registration threshold of €35.000

·  is involved in the acquisition of goods from other EU member states (relates to persons who offer exempt supplies of goods and services or are non for profit organisations) with registration threshold of €10.250

 

Intra-community trading of goods and services

 

Businesses that undertake intra-community trading, i.e. Acquisitions and sales of goods and supply of services from/to EU member states need to complete the following forms:

 

•  Intra-Community Acquisitions: (a)Intrastat-Arrival of goods, (b) Inclusion in the VAT return (on a total basis)

•  Intra-Community Supplies: (a) Intrastat-Departures of goods, (b) Recapitulative statement for supplies of goods and services (VIES form), (c)Inclusion in the VAT return on a total basis

 

INTRASTAT forms are submitted electronically only to the VAT authorities not later than the tenth (10) days from the end of the related month.

 

VAT returns

 

VAT returns are submitted quarterly and the payment of the VAT must be made by the 10th day of the second month that follows the month in which the tax period ends.

 

VAT  Penalties and interest

 

Penalty for late submission of VAT return

€51 for each return

Penalty for omission to keep books and records for a period of 6 years

€341

Penalty for late submission of VIES return

€50 for each return

Penalty for late submission of corrective VIES return

€15 for each return

Omission to submit the VIES return constitutes a criminal offence with a maximum penalty of

€850

Penalty for late registration with the VAT authorities

€85 per month of delay

Penalty for late  de-registration with the VAT authorities

€85 one-off

Late payment of VAT

10% of amount due plus interest

 

 

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Office Locations

Head office

2 Christ. Sozos Str. Eiffel Tower, 1096 Nicosia, Cyprus
P.O.Box 21855, 1514 Nicosia, Cyprus

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District  offices

Limassol / Lemesos
Paphos / Pafos