VAT declaration – Payment/return of VAT
VAT returns must be submitted quarterly and the payment of the VAT must be made by the 10th day of the second month that follows the month in which the tax period ends. (40 days after the end of the quarter)
VAT registered persons have the right to request for a different filing period which is subject to the approval of the Customs and Excise department. The VAT Commissioner has the right to request a taxable person to file the VAT returns on a different period.
Where in a quarter input tax is higher than output tax, the difference is either refunded or transferred to the following quarter.
As from 19 February 2013 taxpayers who make a claim for VAT refund will be entitled to repayment of the principal amounts together with interest (currently set at 4,75% p.a.), in the event that the repayment is delayed for a period exceeding four months from the date of the submission of the claim.
The grace period for the VAT Authorities to repay the refundable amounts is extended by four months (i.e. eight months in total) in the event that the Commissioner is carrying out an investigation in relation to the submitted claim.
Any Omission or delay to submit the intrastat return for a period of over 30 days constitutes a criminal offence with a maximum penalty of euro 2,562.
| Limits and penalties | € | |
|---|---|---|
| 1 | Registration threshold (taxable supplies in Cyprus) | 15.600 |
| 2 | Registration threshold for distance sales (sale of goods to persons not subjects to VAT registration in Cyprus, by suppliers resident in another EU Member State) | 35.000 |
| 3 | Registration threshold for aquisition of goods in Cyprus from suppliers resident in another EU MS | 10.251,61 |
| 4 | Registration threshold for intra – Community supply of services | no threshold |
| 5 | Registration threshold for receipt of services from abroad for which the recipient must account for VAT under the reverse charge provisions | 15.600 |
| 6 | Penalty for late submission of VAT return | 51 for each return |
| 7 | Penalty for omission to keep books and records for a period of 7 years | 341 |
| 8 | Penalty for late submission of VIES return | 50 for each return |
| 9 | Penalty for late submission of corrective VIES return | 15 for each return |
| 10 | Omission to submit the VIES return constitutes a criminal offence with a maximum penalty of | 850 |
| 11 | Penalty for late registration with the VAT authorities | 85 per month of delay |
Find out details about Cyprus Tax by downloading our annual publication Tax Facts 2015.
Important note: This article has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice from a qualified accountant.