Value added tax

Cyprus has been the member state of the European Union since 2004; therefore, regulations concerning intra-community transactions are valid for taxpayers.

Value added tax in Cyprus is payable on:

• domestic trade of goods and services,
• goods imported from a third (non-EU) country and
• products purchased from the European Union.

Tax rates

• Zero for export, shipping services, pharmaceutical products, food and freight transport inside the European Union
• 5% decreased VAT rate for the sale of livestock, art services, entrance tickets and bus transport
• 9% decreased VAT rate for accommodation services, logistics services and hospitality services
• 19% standard VAT rate for other sales of products and providing services

Registration for VAT

Every company is obliged to register for VAT in the following cases:

• at the end of a month when sales of taxable products for the preceding 12 months exceed EUR 15600
• when sales of taxable products for 12 months will predictable exceed EUR 15600 in the following 30 days
• when services provided by a foreign partner (either from the EU or from a third country) exceed EUR 15600
• providing intra-community services
• in the case of intra-community purchase of goods is the value of purchase exceeds EUR 10251.61.

VAT returns shall be filed in every quarter. In the case of payable VAT, payment shall be performed at the time of filing the tax return.