VAT Tax in Cyprus 2024

19% - The standard VAT rate in Cyprus

The standard VAT rate in Cyprus is 19% and applies to all products and services not subject to reduced rates.

Reduced VAT rates in Cyprus 2024

In Cyprus, there are also three reduced VAT rates – 9%, 5%, and 0%.

9% VAT rate in Cyprus

The 9% VAT rate in Cyprus applies to, among others:

• domestic passenger road transport,
• domestic passenger maritime transport,
• services provided in restaurants and a collection of catering services,
• coffee shop activities.

5% VAT rate in Cyprus

The 5% VAT rate in Cyprus covers, among others:

• selected food items, including non-alcoholic beverages,
• water supplies,
• pharmaceutical products,
• medical equipment for the disabled,
• child car seats,
• books, newspapers, and magazines,
• artworks, collectibles, and antiques.

0% VAT rate in Cyprus

Similar to the territory of many other EU member states, the 0% VAT rate in Cyprus applies to intra-community and international transport, and additionally, goods purchased during international flights.

VAT-exempt services in Cyprus

In Cyprus, a VAT taxpayer does not have to pay VAT for:

• residential property rental,
• insurance services,
• selected financial services,
• hospital and medical care,
• postal services.

Cyprus - When is VAT registration required?

VAT registration is necessary in Cyprus in several situations:

• when entrepreneurs import goods to Cyprus from outside the EU,
• when entrepreneurs export goods from Cyprus outside the EU,
• in situations when companies provide services or conduct sales of goods within Cyprus and from its territory to other EU countries,
• in situations when companies acquire goods and bring them into Cyprus from other EU countries,
• in situations when companies store their goods in Cyprus.

It is worth noting that conducting business in another country and making intra-community deliveries of goods and services to individual consumers, the company is subject to the distance selling limit, which has been in effect since July 1, 2021, and is set at 10,000 EUR.

Starting from the transaction that exceeds this limit, the company is obligated to account for VAT in the buyer’s country and may do so by registering for VAT locally or under VAT OSS.

Need help with VAT or e-commerce accounting?

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How to register for VAT in Cyprus?

In Cyprus, for VAT purposes, one can register in person at the regional Tax Office by presenting oneself or by sending the appropriate documents electronically.

When registering for VAT purposes, it is necessary to submit forms TD2001 and TΦ1101. Additionally, during VAT registration in Cyprus, it is necessary to attach several documents:

• confirmation of VAT registration in another EU country,
• copies of the directors’ identity documents,
• company statute.

The Cypriot tax office is Τμήμα Φορολογίας (Tmíma Forologías)

Address: M.Karaoli & Gr. Afxentiou Corner, 1471 Nicosia, Cyprus

Phone number: (357) 22601902,

Fax: (357) 22661243,

Email address: commissioner@tax.mof.gov.cy

Website: www.mof.gov.cy/tax

Cypriot VAT number

The VAT number in Cyprus consists of 9 characters, with the last being a letter. The country code is “CY”.

Deadline for submitting VAT declarations in Cyprus

VAT taxpayers in Cyprus generally submit declarations quarterly, for which they have 1 month and 10 days after the reporting period has ended. However, if the last day falls on a weekend or holiday, then the deadline is considered the next working day.

Declarations in Cyprus are submitted electronically by VAT payers.

Penalties and sanctions

In the event of delays in submitting tax declarations or business registration for VAT purposes, the following penalties may be imposed on the entrepreneur:

• 85 EUR for each month of delay in VAT registration,
• 51 EUR for each delayed declaration,
• 10% of the due amount plus 5% annual interest,
• 85 EUR for late deregistration.

Intrastat Cyprus

In Cyprus, as a territory of the European Union, entrepreneurs are also required to report Intrastat statistics. The basic threshold for imports in this country is 320,000 EUR, and for exports 75,000 EUR.

If you want to learn more about Intrastat in EU member countries, check out our article Intrastat Thresholds 2024.

VAT Tax Cyprus 2024 - Summary

The standard VAT rate in Cyprus is one of the lowest in the European Union countries. The same standard rate also applies in Germany and Romania, while only Malta (18%) and Luxembourg (16%) have lower rates. Moreover, like other countries, Cyprus has its own regulations concerning the goods and services tax, which need to be known to conduct business activities in this country lawfully.

If you are engaged in international trade within the European Union and the United Kingdom and need assistance with VAT issues, schedule a consultation with us and see how our VAT Compliance specialists can help your company with registrations, VAT OSS, or settlements.

Meanwhile, to learn more, check out what the VAT registrations look like in: Austria, the Czech Republic, France, Spain, Germany, the United Kingdom, or Italy.