Cyprus VAT Registration
Every natural or legal person, established in the Republic of Cyprus, is liable to register to the VAT, by the end of the month, if the annual turnover of VAT taxable goods and services supplied in the previous 12 months has exceeded €15,600 or at any time if there are reasonable grounds for believing that the annual turnover of the VAT taxable goods and services supplied will exceed €15,600 within the next thirty days. Notably, a person not liable for VAT registration may register voluntarily. Further information may be found in the leaflet "VAT Registration".
Natural or legal persons, not permanently established in the Republic of Cyprus, may be subject to registration in the VAT Register, if the value of the taxable transactions carried out in the Republic of Cyprus exceeds the amount of €15,600. Otherwise, natural or legal persons, not permanently established in Cyprus, may voluntarily register in the VAT Register if they carried out taxable activities in the Republic of Cyprus. Further information may be found in the leaflet "VAT Registration - Non established in the Republic of Cyprus persons".
The application for registration in the VAT Register (Form VAT 101) can be submitted either electronically through the PSC Cyprus Portal or by post/hand to the One Stop Shop or the local VAT Office. The contact details are provided in related documents.The application should be accompanied by the following documents:
- copy of identity card or passport (in case of self-employed person);
- copy of certificate of incorporation, copy of certificate of registered office address, copy of certificate of directors and secretary and copy of certificate of shareholders (in case of a company);
- copy of certificate of partnership registration (in case of partnership);
- copy of certificate of registration of business name (in case of business/trade name);
- form VAT 102 for partnership registration to the VAT Register (in case of partnership);
- copy of evidence that the natural or legal person conducts taxable activities in Cyprus (i.e copies of contract, invoices related to the business activities);
- questionnaire for the registration of international business entities (registered companies in the Republic of Cyprus whose main business activities are carried out abroad).
The VAT registration number is issued within one or two days. The certificate of registration is provided within 5 to 10 days.
If a person is liable to be registered, he/she is obliged to notify the VAT Commissioner of his liability by submitting the Application for Registration in the VAT Register (Form VAT 101) to PSC Cyprus' portal or by hand to the PSC Cyprus' office or to the local VAT Office, before the end of thirty-day period to which the liability arises and the registration is effective as from the beginning of this period.
Failing to comply, the person is liable to a levy of €85 for every month or part of month of the delay or refusal or omission.
AcquisitionsAny person making acquisitions in the Republic of Cyprus is liable to be registered:
- at the end of any month , the total value of that person´s acquisitions from all other member States in the year beginning from 1 January has exceeded the registration threshold of €10,251.61; or
- at any time that there are reasonable grounds to believe that the value of the acquisitions that person would be making in the following 30 days alone will be over the registration threshold of €10,251.61.
The VAT form 106 can be submitted to the local VAT Office.
Otherwise, a penalty fee of €85 for every month of the delay or refusal or omission is charged.
In case the acquisitions of any person do not exceed the threshold of €10,251.61, the person may register for making acquisitions in Cyprus voluntarily.
Any person making distance sales (sales from a person established in another member State to private individuals in Cyprus), is liable to register for VAT purposes in the Republic of Cyprus, if in the period starting from the 1st January of the year, the value of distance sales exceeds €35,000.
There is also the right for voluntary registration when the threshold is not reached. Persons liable to notify liability to register or voluntarily wish to register may do so by submitting Form VAT 105 to the local VAT Office.
Failure to comply renders the person liable to a levy of €85 for every month of the delay or refusal or omission.
Obligations and SupervisionRegistered to the VAT persons, are obliged, among others, to:
- submit VAT Tax Declarations and pay the tax due by the 10th day following the end of the month after the taxable period;
- issue VAT invoices for transactions made to other taxable persons in the Republic of Cyprus or any person in other EU member states;
- keep books and records and preserve them, for at least seven (7) years after the completion of the entries or deeds written therein, of all the taxable supplies of goods or services made or received, during the course of carrying out of business activities, and all the intracommunity transactions made. Books and records must be kept up-to-date, with adequate information and in a manner that enables taxable persons to use them to calculate the payable or claimable amount of tax and fill in tax declarations.
The VAT Commissioner and authorized VAT officers are empowered by the VAT legislation, among others, to enter and inspect premises, request information and documents, or take samples of goods.
Source: Ministry of Commerce, Industry and Tourism, Point of Single Contact, Republic of Cyprus