Value Added Tax (VAT) is imposed on the provision of goods and services in Cyprus, as well as on the acquisition of goods from the European Union and on the importation of goods into Cyprus.

Taxable persons charge VAT on their taxable supplies (output VAT) and are charged with VAT on goods or services received (input VAT).

The legislation provides for the following tax rates:

  • Zero rate (0%)
  • Reduced rate of five percent (5%)
  • Reduced rate of nine percent (9%)
  • Standard rate of nineteen percent (19%)

Every individual or company is obliged to register:

  • at the end of any month, if the value of taxable supplies recorded in the last 12 months exceeds €15.600 or
  • at any point in time the value of taxable supplies are expected to exceed €15.600 in the next 30 days.

Businesses with turnover less than €15.600 and companies which make supplies for which the right to claim the amount of the related input VAT is granted have the option to register with the VAT authorities on voluntarily basis.

Any registered person must submit to the VAT Commissioner a VAT return within 40 days from the end of any tax period and pay the VAT due.