Cyprus VAT guide
Value Added Tax (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.
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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 heath, education and other listed activities such as finance and insurance.
VAT registration in Cyprus
Any business making taxable supplies 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.
For non-established EU businesses, VAT registration is required if taxable supplies in Cyprus exceed:
- EU-wide threshold: €100,000
- Country-specific threshold: €15,600
EU-based businesses carrying out distance sales of goods are not required to register if annual sales remain below €10,000.
Non-EU businesses must register for VAT in Cyprus if they make taxable supplies, regardless of turnover. However, they may opt to use one of the EU One Stop Shop (OSS) schemes, where applicable, to simplify VAT compliance.
eInvoicing requirements
No B2B eInvoice or new eReporting mandate planned yet.
VAT return filing and deadlines
In Cyprus, quarterly VAT filings are the default.
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.
All VAT-registered businesses in Cyprus must register and file their VAT returns electronically via the Taxisnet System. The only exceptions are businesses registered under the special schemes for taxis and farmers which follow separate filing procedures.
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VAT penalties
In Cyrpus, penalties apply for non-compliance with VAT obligations.
- For late submission: A fixed penalty of €100 per late return
- For late payment : A surcharge of 10% of the VAT amount due, in addition to potential interest charges for ongoing delays
Fiscal representatives
Non-EU businesses trading in Cyprus are required to appoint a local fiscal representative. The fiscal representative is responsible for submitting VAT returns and fulfilling all VAT obligations on behalf of the business.
IOSS
The IOSS in Cyprus will allow businesses, either from the EU or a third country, which sell from distance imported goods in the EU with a value up to €150, to collect, declare and pay VAT to the tax authorities.
Where the business is using IOSS, which is not compulsory, VAT will be charged at the point of sale (the buyer will be charged VAT at the time of purchase thus avoiding customs clearance). VAT will be charged on all goods which are being imported to the EU, abolishing the previous no VAT rule on goods which did not exceed the value of €17.
VIES declarations
In Cyrpus, 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 2025
Arrivals:
- Simplified Reporting: €1,500,000.00
- Detailed Reporting: €25,000,000.00
Dispatches:
- Simplified Reporting: €1,000,000.00
- Detailed Reporting: €12,000,000.00
Deadlines and frequency
Intrastat respondents have to submit their declarations on monthly basis. Submissions are due by the 20th calendar day following the end of the reporting month.
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