VAT or Value Added Tax is perhaps one of the most complicated taxes you’ll have to deal with. The rates and rules differ from country to country, and the details of this tax change regularly. For EU businesses, it is important to keep ahead of these changes, as you’ll need to know immediately should there be a rate change in your country, or a country you do business with. For businesses outside of the EU, dealing with businesses within Europe, VAT can seem incredibly complex and hard to fully understand. If your company solely conducts business within your own country, such as within Cyprus, then VAT is enough of a complication, but when you begin to take into account trading across countries, with differing rates of VAT, the complexities massively increase. Yet, however challenging it may be, you always have the option of allowing Globalserve to take the stress away from you and manage all your VAT issues with a comprehensive range of VAT services.
A closer look at VAT in Cyprus
Of course VAT regulation and rates differ from country to country, but as we are based in Cyprus, as are many of our clients, here is some information regarding VAT within this jurisdiction. As part of the EU single market economy, Cyprus is governed by EU VAT rules with directives being issued by the EU. VAT in Cyprus was first introduced in 1992 and the rate is currently 19% except for a few exceptions such as a reduced rate of 9% for some tourism related services such as accommodation and a lower rate of 5% for some items such as food for animals and medication.
The threshold at which you much legally become VAT registered in Cyprus is currently set at €15,600 (annual). Becoming VAT registered can be a little time consuming, but it is necessary if you have reached the threshold. We can help you through the entire process which should be completed within around four to six weeks.
Once VAT registered, you’ll be obliged to keep very specific records with regards to your accounting. This may mean a change in your own methods, additional work for yourselves, or perhaps this would be a good time to hand your accounting over to a third party company such as Globalserve. We can look after your accounts, deal with any VAT issues, leaving you to get on with running your business.
We offer VAT services to businesses worldwide, so don’t hesitate to get in touch if you have any questions or require more information regarding our services. Our expert accounting and VAT team are fully knowledgeable regarding all aspects of VAT and global accounting practices.
Don’t hesitate to get in touch
If you have any questions at all, do get in touch. We can advise you on all aspects of accounts, VAT and other taxes. Call or email us, or find more information regarding the extensive range of services we offer on our website.
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