CyprusManual

VAT returns in Cyprus

Frequency of VAT returns in Cyprus

The standard frequency of filing the periodic VAT returns is quarterly in Cyprus. However, the specific quarters may vary depending on the company’s activity, eg., for the Q1 could refer to Jan-March, February-April, and April-May. The tax authorities have created three groups belonging to different quarter periods to distribute the companies: retailers, industry, and services.

Under certain conditions, taxpayers may file monthly VAT returns in Cyprus for monthly refunds. The taxpayer must request the change to monthly submissions.

Due date of Cypriot VAT returns

The due date for submitting CY VAT returns is by the 10th day of the second following month.

Find here the tax calendar in Cyprus.

VAT payments in Cyprus

In Cyprus, you will get the payment details after the submission of the return.

In TFA you can select the option “Make a payment” and click on “Pay now”. After indicating the VAT return that you want to pay, the payment options will be displayed in the screen. Normally, you will see the options:

Pay online

  • Payment through a Cypriot Commercial Bank
  • Or the option “Can’t pay with the above methods?” By clicking on this option, you will receive the payment details to make a bank transfer to the Central Bank of Cyprus, allowing taxpayers to pay from a foreign bank account.

VAT refunds in Cyprus

When a taxable person declares more VAT deductible (input VAT) – e.g., due to purchases-, than VAT collected from sales (output VAT), the difference is a VAT credit which may be claimed for refund or carried forward to the following period to compensate with future output VAT.

The general rule is that the excess of input VAT must be carried forward to the following reporting periods. Taxpayers may claim the VAT refund if the following conditions are met:

  • Excess of input VAT was carried forward until the last reporting period of the year where it originated.
  • The VAT credit has been carried forward for 3 years from the end of the tax period in which the entitlement to deduct it arose.
  • The VAT credit corresponds to zero-rated supplies.
  • The VAT credit corresponds to supplies made outside Cyprus.
  • The VAT credit corresponds to the acquisition of capital goods.

In order to claim the VAT credit, you must complete and submit form 4B as well as form T.D. 1900 to authorize the payment to the bank account provided. A separate refund claim must be submitted for each period in which there is a refundable credit balance of VAT. Although you do not need to add any supporting document to your request, the relevant VAT books and records may be requested when the refund claim is examined by the tax office.

Interests accumulate until the VAT credit is paid starting by the fourth month after the VAT refund application is submitted.

The statute of limitations applies to the recovery of input VAT, in this case, six years.

Find here and here additional information about VAT refunds through TFA in Cyprus. Also, find here the indicated forms.

Nil and corrective VAT returns in Cyprus

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period.

You can correct VAT returns submitted during the previous three years (calculated from the end of the reporting period to which the amendment refers).

To correct a VAT return already submitted, you need to consider the following notes:

  • In case you are within the deadline for submission, then you can amend all boxes in TFA.
  • In case the deadline is passed, you can modify only fields from 6 to 11 that refer to the declared values, but not the tax amounts.
  • In case the deadline has passed, and you want to modify the VAT amounts, you will have to send a written email request (Taxpayer Enquiry) to the Tax Department, through your account in the Tax For All portal.

To correct the VAT return in TFA, you need to select the corresponding VAT return and period from the My Accounts area, open it, and click on the button “Correct this VAT return”. You will have to complete an explanation box explaining the reason to amend the declaration.

Also, if you forgot to include purchase invoices (input VAT) in the corresponding reporting period, and the VAT amount does not exceed the threshold of EUR 1,708, you can deduct the invoice in the current reporting period.

Find here more information about corrective returns in Cyprus.

VAT penalties in Cyprus

If you fail to submit any tax returns required then you will be charged a fixed penalty amounting to EUR 100, an additional surcharge equal to 10% of the VAT due, as well as default interest on the tax amount due. The system will also proceed to the automatic calculation of estimated amounts of VAT due.

Find here the official information about penalties for non-compliance in Cyprus.

Cypriot Tax Authorities Contact

VAT Refunds

Tax Department – Ministry of Finance

  • Telephone: +357 22308113
  • Email: vatvima@vat.mof.gov.cy  

Address: 2, Tseriou Street, 2042 Strovolos, Nicosia. Cyprus.

OSS

Intrastat returns:

Taxation Department, 1471 Nicosia

Email: vatvima@vat.mof.gov.cy

Customs contact:

 

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