VAT Cyprus Guide

Read our guide and find out everything you need to know about VAT in Cyprus, from registration to filing, and more.

Cyprus, an island country in the Eastern Mediterranean, is a significant hub for international business, particularly in the finance, shipping, and tourism sectors. Understanding the VAT system is essential for businesses planning to sell there. This guide offers a comprehensive overview of Cyprus VAT regulations.

What is the Cyprus VAT rate?

VAT (Value Added Tax) in Cyprus, known locally as Fóros Prastithémenes Axías (FPA), is a major part of the country's tax system. The standard Cyprus VAT rate is 19%, with reduced rates of 9% and 5%, as well as a 0% rate.

Type of VAT	VAT Rate	Applicable Goods/Services
Standard VAT	19%	All other taxable goods and services.
Reduced VAT rate (1)	9%	Includes hotel accommodation, restaurants and catering services, cafes, and certain transportation services.
Reduced VAT rate (2)	5%	Includes certain foodstuffs, takeaway foods, non-alcoholic drinks, books, newspapers and periodicals, pharmaceutical products, and admission to cultural and sports events.
Zero rate VAT	0%	Intra-community supplies and international passenger transport.

Registering for VAT in Cyprus

Businesses resident in Cyprus with an annual turnover exceeding €15,600 must register for VAT. For foreign businesses, the threshold for Cyprus VAT registration is zero – meaning any taxable supply necessitates registration.

Like the rest of the EU, Cyprus follows the €10,000 threshold for distance selling. Businesses exceeding this in cross-border sales within the EU must register for VAT in Cyprus. They must also register for VAT if they store products in Cyprus, or are signed up to an FBA program (Fulfilled-by-Amazon) that includes Cyprus.

Registration can be done through the Cyprus Tax Department. The process usually takes a few weeks, after which a Cypriot VAT number will be issued. Applications must be made in Greek.

Fiscal representative in Cyprus

Non-EU companies are required to appoint a fiscal representative in Cyprus for VAT purposes. This representative is responsible for ensuring VAT compliance in the country on behalf of the business.

Cyprus VAT return filing and penalties

Cyprus VAT returns must be filed quarterly, although not calendar quarterly. The exact quarterly VAT period will depend on the nature of the business (retailers, industry or services).

VAT returns and payments are due by the 10th of the month following the reporting period and must be submitted electronically via TAXISnet.

Late filing is subject to a fine of €100 per Cyprus VAT return, while late payments will incur a penalty of 1.75% interest on the amount unpaid.

Cyprus Intrastat declarations

Businesses in Cyprus reaching certain thresholds in intra-community trade must file Intrastat declarations. The thresholds are €270,000 for arrivals and €75,000 for dispatches. Declarations are due by the 10th day of the month following the reporting period. Late filings may result in fines.

Reverse charge in Cyprus

The reverse charge mechanism is applicable to certain goods and services in Cyprus, similar to other EU countries. It shifts VAT responsibility from the supplier to the recipient, who must account for it in their Cyprus VAT return, and is most commonly used for cross-border transactions within the EU.

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