VAT registration is compulsory when:
- The taxable supplies of a business exceed €15.600 during the previous 12 months.
- The taxable supplies of a business are expected to exceed the €15.600 threshold within the next 30 days.
- Provides services to VAT registered persons in other EU Member States.
- Offers distant sales with registration threshold €35.000. Businesses can voluntarily register for VAT even if the above criteria are not met, provided that they are making taxable supplies (i.e. not exempt).
A business can also register voluntarily for VAT if it makes supplies that are outside the scope of VAT, with the right to claim input VAT. These are supplies that their place of supply is not Cyprus, but if it was Cyprus they would have been considered as taxable.
Cyprus VAT rates
- Standard rate of VAT: 19%
- REduced rate to 9%
- The reduced rate of 5% remains unchanged
0% VAT rate on
Exports, commission from abroad for imports or exports to or from Cyprus, international air and sea transportation of persons, goods and related services, ship management services, goods that are to be placed in customs warehouses or bonded warehouses or free-zones and be subjected to the relevant customs regime or temporary importation or transit or transshipment regime goods that are intended to be incorporated into drilling, supply goods after importation but before customs clearance.
5% VAT rate on
Supplies of animal feeding stuff, including food for birds and fish, supplies of fertilizers, supplies of coffins, supplies of liquefied petroleum gas, newspapers, books, magazines and similar items, supplies of various goods for incapacitated persons, supplies of food including drinks for human consumption but excluding alcoholic beverages (beer, wine) and refreshment drinks, supplies of medicines which are used for medical treatment, illness prevention and medical and veterinary purposes, supplies of vaccines for medicine and veterinary medicine and services supplied by undertakers, services of road cleaning, refuse collection and waste treatment (other than services provided by local administration), services of writers, composers and artists, services of hairdressers, renovation and repair services to private residences (subject to certain conditions), fares for urban and rural areas by bus, catering services from school canteens, purchase or construction of a flat or house to be used as private main residence.
9% VAT rate on
Restaurant services and other similar catering services which consist in the supply of manufactured or non− manufactured food or drinks or both for human consumption including refreshment drinks, alcoholic beverages (beer and wine), hotel accommodation and other similar establishments, including the provision of holiday accommodation, transportation of passengers and their luggage by taxi
19% VAT rate on
All supplies of goods or rendering of services, except those taxed at 0%, 5%, 9% or exempt.
The below services are exempted from VAT
- Supplies of immovable property (except the disposal of “new buildings”)
- insurance and financial services
- Medical services
- Educational services
Globalserve accounting department is always available to advice and assist you on the VAT maters. Based on our experience we are in the strong position to offer you the below services:
- VAT registration
- Bookkeeping and review
- Submission of the VAT returns
- Fill in and submission of the VIES form on a monthly basis
- Consultancy for VAT treatments