Value-added tax is imposed on the provision of goods and services in Cyprus, 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 and are charged VAT on goods or services received.
Who must or can register:
Any person involved in taxable activities including, individuals, limited liability companies, partnerships, clubs, foundations, unions, international business entities, groups of companies, provided the registration threshold of €15.600 is exceeded.
Registration with the VAT Register:
Compulsory registration: If at the end of any month by adding the turnover of the previous 11 months the Cyprus VAT registration threshold of €15.600 is exceeded or there are reasonable grounds for believing that the value of taxable supplies in the next 30 days will exceed the threshold.
Voluntary registration: For any person who makes taxable supplies below the registration threshold of €15.600.
Cyprus VAT Rates 2018:
- Standard rate – 19%
- Reduced VAT rate (transportation with rural and tourist buses, transportation with city and rural taxis, restaurant services, etc ). – 9%
- Reduced VAT rate (pharmaceutical products, foodstuffs, books, gas, entrance fee to concerts, museums, etc). – 5%
- Zero VAT rate (export of goods, leasing of aircraft-under certain conditions, passenger transport services from and to the Republic, etc). – 0%