VAT in Cyprus – a complete guide

Are you selling goods to customers in Cyprus? Check whether you need to register for Cypriot VAT and what VAT rates apply on the island.

VAT in Cyprus - table of contents:

Value Added Tax (VAT) was introduced in Cyprus in 1992. All regulations (registration, declaration, compliance with Cypriot VAT) are governed by the directives of the European Union on VAT. The administrator of VAT in Cyprus the Tax Department operating under the Cypriot Ministry of Finance.

Foreign companies and non-resident entrepreneurs are obligated to register their activities for Cypriot VAT purposes. Such businesses are required to:

comply with the rules of Cypriot VAT,
issuing invoices,
paying the due VAT.

Should you register as a taxpayer VAT in Cyprus?

Certain trade situations require foreign entrepreneurs to register their activities with the appropriate Cypriot tax authorities. Registration for Cypriot VAT is necessary in cases like:

import of goods to Cyprus from non-European Union countries,
transfer of goods between Cyprus and other member states (intra-community supplies), encompassing both the sale (dispatch) and purchase (arrival) of goods within Cyprus,
storage of goods in warehouses as consignment stock,
organization of various exhibitions, events, or live training sessions in Cyprus,
selling goods to Cypriot consumers online after exceeding the threshold of 10,000 euros.

IMPORTANT! Entrepreneurs providing services and selling goods online to consumers within the EU, whose turnover from such sales exceeds 10,000 euros (for all countries), instead of registering for Cypriot VAT, may register for VAT OSS.

What information is required to obtain a VAT number and registration in Cyprus?

The Cypriot tax authority requires the completion of forms and the submission of the following documents:

VAT certificate confirming that the company is registered as a VAT payer in another EU country (if applicable),
memorandum,
copies of personal IDs or passports,
evidence confirming that the value of taxable supplies has exceeded the registration threshold.

You can find the Cypriot tax office at the following link: https://www.mof.gov.cy/mof/tax/taxdep.nsf/index/index?opendocument

What is the format of the Cypriot VAT number?

The VAT department usually assigns a unique VAT number within three days of registration. Each EU member state has a specific VAT number format. In Cyprus, it looks like:

Country code: CY

Format: 12345678X

Number of characters: 9

The last character must be a letter.

VAT declarations in Cyprus

Each of the companies registered with the Cypriot tax office as a non-resident VAT entity is obligated to report taxable transactions through periodic submission of tax declarations. Importantly, Cypriot VAT4 declaration forms are available only in the Greek language.

How often are VAT declarations required in Cyprus?

Quarterly VAT declarations are typically required. However, the VAT accounting period may depend on the type of business activity and will be communicated to the taxpayer at the time of registration.

VAT rates in Cyprus

RATE	TYPE	TYPE OF GOODS OR SERVICES
19%	standard	all goods and services not covered by the lower rate, transactions related to land for business purposes,
9%	reduced	domestic road transportation of persons, domestic sea transportation of persons, accommodation in hotels, restaurant and catering services, cafés,
5%	reduced	some food products, non-alcoholic beverages, water supplies, pharmaceutical products, medical equipment for persons with disabilities, child car seats, certain types of passenger transportation, books (excluding e-books), newspapers and magazines, admission to cultural events and amusement parks, writers and composers, renovations and repairs of private residential buildings, certain types of agricultural supplies, admission to sports events, use of sports facilities, household waste removal, hairdressing, some funeral and cremation services, liquefied petroleum gas (in bottles), takeout food (excluding non-alcoholic and alcoholic beverages), social housing, cut flowers for food production, waste management and sewage treatment, works of art, collectibles, and antiques, some services related to intra-community flights.
0%	zero	intra-Community and international transportation, goods purchased during international flights.

If you like our content, join our busy bees community on Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest, TikTok.

Author: Lucy Adams
She has extensive knowledge in the field of accounting and constantly gains experience working for both small businesses and larger corporations. Her mission is to explain complex financial and accounting issues and teach business owners and those interested in the subject how to manage their finances effectively. She enjoys giving practical advice, discussing current accounting issues, and analyzing legislative changes that may affect business operations. She enjoys a straightforward approach to finance that helps entrepreneurs focus on growing their businesses. She translates complex issues into easy-to-understand language so that anyone can confidently make decisions that impact the success of their business.
View all posts