Cyprus VAT Registration Number for 2021
Cyprus Vat Registration for 2021: In Cyprus every company has to register with the Vat Authority if it will do a turnover of 15600 Euro or more. Holding companies do not need to get a Cyprus Vat Registration Number!
Getting a Vat number requires the following:
1.You must be tax resident in Cyprus
2. A trading person either physical or legal, who carries out any kind of trading activity either in Cyprus or abroad.
3. You must present proof to the VAT Authority that you have began trading i.e. an invoice.
Our firm will register your company with the VAT Authority in about 3 days.
For more information on how to register with the Vat authority and you need to contact us for advice or other information follow this link: Contact Us Here.
Cyprus Vat Rates for 2021
The Cyprus Vat Rates are very favorable to foreign businessmen compared to vat tax rates in other countries. They are only 19% as from 13 January 2014. Vat is charged on all imports into Cyprus of goods or services. That is on every supply of goods imported into the country or services given within the Republic.
For more reading about Cyprus Vat, the rates, the goods and services which are taxable and the other Cyprus taxes follow this link: Vat Rates in Cyprus – Cyprus Taxes.
Tax is Levied On Most Goods and Services
Cyprus Vat Registration: The standard vat rates in Cyprus is 19% as of the 13th of January 2014. Cyprus Vat is charged on every supply of goods or services at the standard rate of nineteen per cent (19%). Reduced rates of 5% on certain commodities and services.
The reduced rate of 5% is imposed on the supply of coffins, services supplied by undertakers, services of writers, artists, on the supply of fertilizers, foodstuff for animal, live animals, seeds, non bottled water, newspapers, books, periodicals, certain products for persons with special need, ice cream, certain types of nuts (salted etc), transport of passengers and their accompanying luggage with urban and rural buses, the letting of camping sites and caravan parks, hair salon services, confectionery product, foods ,bottled water, Juices, medicines, pharmaceutical products, entry fees to theaters, cinemas at sports events, Luna parks and similar cultural events.
Reduced Vat Rates
The following services are taxable at the reduced vat rates of 8%: transport of passengers and their accompanying luggage within Cyprus, with urban, suburban and rural taxis as well as with tour and suburban buses. Services of restaurants and the supply of food in the course of catering. Provision of accommodation in the hotel sector or in sectors with a similar character. The transport of passengers and their accompanying luggage by sea, within the country is taxable at the Cyprus Vat Rates of 8%.
Vat Returns Must Be Filed Quarterly
Every taxable person is liable to submit Tax Declarations and pay the vat tax that may be due, usually every three months. Cyprus vat declarations relate to certain tax periods that are made known to the taxable person at the stage of his registration. On the declarations, taxable persons calculate their output tax (the tax on supplies of goods or services they made during the relevant tax period and the vat calculated on the acquisition of goods from other member States.
Vat Representative For Foreign Entities
If a trader is not resident in the Republic – in the case of a natural person or the legal person is based abroad – carries out a business in Cyprus and is liable or entitled to registration in the VAT Register of the Republic, tax officer may appoint a person who is resident in the Republic and is recommended by the trader, to act on behalf of the trader for Cyprus vat matters (a VAT representative) or require security for the protection of public revenue. It should be noted that for persons resident in another member state or legal persons incorporated in another member state, there is no obligation to appoint a vat representative. For more reading about your tax planning please follow this link: CyprusTax Rates.
Zero Rating For Intra Community Supplies
Prior to 1st May 2004 (accession of Cyprus in the EU) all exports of goods to destinations outside Cyprus, qualified for the zero rate of VAT. This continues to be the case for exports to countries outside the EU. However, under the EU VAT arrangements, as from that date a Cypriot trader registered for VAT may zero-rate the supply of goods to a customer in another Member State (MS) provided that:
- The customer is registered for VAT in the other MS.
- The customer’s VAT registration number is obtained and retained in the supplier’s records.
- This number, together with the supplier’s VAT registration number is quoted on the sales invoice.
- The goods are dispatched and transported to the other MS.
- The supplier retains appropriate commercial documentary evidence that the goods have been removed from Cyprus.
- The supplier submits the Recapitulative Statements to the VAT Service.
- The European VIES System.
VIES (Vat Information Exchange System) contributes to the effectiveness of this new Vat regime and provides a mechanism for preventing and deterring of the abuse of the Vat zero-rating provisions on Intra-Community trade of goods and detecting unreported movements of zero-rated goods between MS. An integral part of the system is a requirement that each MS must store and process specific information which it collects from its traders about their supplies to other MS.