Cyprus extends domestic reverse charge to electronic devices
To tackle VAT fraud, the Cypriot authorities are extending the reverse charge mechanism to electronic devices
Domestic reverse charge in Cyprus
Starting on 1 October 2020, domestic reverse charge will apply in Cyprus on sales of electronic devices such as microchips, microprocessors, gaming consoles, tablets, and laptops.
The European Commission may allow Member States a derogation from the general rule in order to apply reverse charge on certain products that are often used for fraud purposes. In particular, electronic devices have a small size and large value, hence making it attractive for fraudsters when using the so called “carouse fraud” to use these products.
This type of reverse charge is already applicable in several jurisdictions like Lithuania, Spain, Latvia, Germany or Greece.
You can read more about reverse charge mechanism in our article “Reverse charge: Mechanism, rules and Possible scenarios”.