Cyprus VAT guide
VAT was introduced in Cyprus in 1st of July 1992. The local name for VAT is Fóros Prastithémenes Axías (Φόρος Προστιθέμενης Αξίας) and the abbreviation is ΦΠΑ (FPA).
The system is based on the European VAT Directive and is administered by Cypriot Ministry of Finance.
Menu
What is the standard VAT rate in Cyprus?
19%
Reduced rate: 9%
Applies to all restaurant catering services, hotels, tourist accommodation and passenger transport.
Reduced rate: 5%
Applies to the supply of food and beverages (excluding alcohol and soft drinks), pharmaceutical products, newspapers, books and magazines, hairdressing services, cultural event entry and school catering services.
Zero rate: 0%
Applies to exports, intracommunity supplies and international passenger transport.
Exempt categories: Activities in public interest, such as health, education, finance and insurance services.
VAT registration in Cyprus
Any business making taxable supplies in Cyprus must register for VAT if:
- The value of taxable supplies exceeds €15,600 over the previous 12 months, or
- There is reasonable expectation that taxable supplies will exceed €15,600 within the next 30 days.
Non-established businesses (EU and non-EU) making taxable supplies in Cyprus are generally required to register for VAT from their first taxable transaction.
For cross-border B2C sales within the EU, a €10,000 EU-wide threshold applies. Below this threshold, VAT may be accounted for in the supplier’s Member State. Once exceeded, VAT must be accounted for in the customer’s Member State, either via local registration or the One Stop Shop (OSS).
Non-EU businesses must register for VAT in Cyprus if they make taxable supplies, regardless of turnover. They may, where applicable, use OSS or IOSS schemes to simplify compliance for cross-border transactions.
eInvoicing requirements
There is currently no mandatory B2B eInvoicing or real-time eReporting regime in Cyprus. B2B eInvoicing remains voluntary and subject to agreement between trading parties.
For B2G transactions, public authorities are required to be able to receive electronic invoices in line with EU standards (EN 16931), although suppliers are generally not required to issue them.
Cyprus is expected to introduce eInvoicing and digital reporting obligations in line with the EU VAT in the Digital Age (ViDA) initiative, which will require mandatory intra-EU B2B eInvoicing from 1 July 2030.
VAT return filing and deadlines
In Cyprus, VAT returns are typically filed on a quarterly basis.
Quarterly VAT returns must be submitted before the 10th day of the second month following the end of the reporting period. If the due date falls on a weekend, or on a public holiday, then the due date for filing and payment is moved to the next working day.
VAT returns must be filed electronically via the Cyprus Tax Department portal (Taxisnet / Tax For All system).
Certain special schemes (e.g. agriculture or taxi operators) may follow simplified or alternative filing procedures.
Comply – Global VAT compliance
Our VAT compliance solution, Comply helps companies manage their complex, country-specific tax requirements including Cyprus’ VAT obligations.
Using AI and machine learning, our technology puts your VAT data through over 300 automated VAT rules, checking for errors, and preparing VAT returns for approval and submission. Comply provides a full audit trail for the Cypriot Ministry of Finance.
VAT penalties
In Cyprus, penalties apply for non-compliance with VAT obligations.
- For late submission: A fixed penalty of €51 per late return
- For late payment : A surcharge of approximately 5% of the VAT due may apply, together with interest charges for late payment. Additional penalties may apply in cases of continued non-compliance or serious inaccuracies.
Fiscal representatives
In Cyprus, the appointment of a fiscal representative is generally not mandatory. Non-EU businesses can register directly for VAT and manage their VAT obligations without appointing a local representative.
However, businesses may choose to appoint a fiscal representative or agent to assist with VAT compliance, including registration, filing VAT returns, and liaising with the tax authorities.
IOSS
The IOSS in Cyprus allows businesses to account for VAT on distance sales of imported goods with a value up to €150.
Under the IOSS scheme, which is optional, VAT is charged at the point of sale and declared via a single monthly return in one EU Member State. This allows VAT to be collected from the customer at the time of purchase and simplifies the import process, although standard customs formalities still apply.
VIES declarations
In Cyprus, VIES (VAT Information Exchange System) filing frequency is monthly and VIES must be submitted by the 15th calendar day after the end of the respective month.
Intrastat
Registration and submission
The requirement to submit Intrastat reports arises when goods are moved within the EU and thresholds exceeded:
Intrastat Thresholds for 2026
Arrivals:
- Simplified Reporting: €380,000
- Detailed Reporting: €2,700,000
Dispatches:
- Simplified Reporting: €75,000
- Detailed Reporting: €5,800,000
Deadlines and frequency
Intrastat declarations must be submitted monthly. Returns are due by the 10th calendar day following the end of the reporting month.
Rise Above the Rest
Maximise your potential with our full suite
VAT compliance solution
Rise above complex indirect tax challenges with Comply, Fintua’s revolutionary platform for global indirect tax compliance.
VAT recovery solution
Recover automates the process of identifying and reclaiming VAT on business expenses, both domestically and internationally, helping you boost your bottom line.
Integrated payments solution
Pay simplifies international payments, reducing complexity and costs while ensuring compliance with local regulations and improving financial visibility.
eInvoicing solution
eInvoice enhances efficiency by digitising your einvoicing process, ensuring compliance across multiple jurisdictions and improving cash flow management.