Cyprus to allow VAT payments in installments in 2021
Cyprus tax officials announced that taxpayers will have the option to make their VAT payments in installments for certain reporting periods.
Different VAT payment options for businesses in Cyprus
Taxpayers will be relieved to know that the Department of Taxation in Cyprus announced a VAT payment installment option for certain reporting periods. These reporting periods include December 2020 and January 2021. Portugal also recently offered an installment plan for taxpayers.
Specifics on the installment plan
One option for taxpayers to make their VAT payments is to do it in three equal monthly installments. Normally, VAT returns and payments are due in Cyprus on the 10th day of the second following month. For the reporting periods mentioned above, the due dates would normally be 10 February 2021 and 10 March 2021.
However, the tax authorities laid out a new installment plan for VAT payments. Companies will have the option to pay the VAT due for these periods in monthly installments, with the first installment of the VAT payment made by 10 April 2021, the second by 10 May 2021, and the third installment by 10 June 2021. Businesses will not be penalized, and interest will not be charged should they elect this option.
Who can enjoy the VAT payment changes?
Only those businesses who submit their VAT returns on time and do not carry out certain business activities will be eligible for this scheme. Some of this activity includes hospital activities, forestry and logging, veterinary activities, and certain financial services. You can find more information on which business activities are disqualified here.
Get in touch
Not sure if your economic activity qualifies or how these changes might affect your business flow? Speak with an agent today to discuss your needs and how we can help you.