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By Nexora Cyprus editorial team · General information — seek advice for your circumstances
Quick Summary
Cyprus’s standard VAT rate is 19%. Registration depends on the transaction: the €15,600 domestic turnover threshold is not a universal exemption for cross-border services. VAT returns are due on the 10th of the second month after the assigned period; applicable VIES statements are monthly, due on the 15th.
VAT Rates in Cyprus (2026)
| Rate | Category |
|---|---|
| 19% | Standard rate — most goods and services |
| 9% | Specified restaurant, accommodation and passenger-transport services |
| 5% | Specified goods and services, including eligible food, medicines and publications; check the legal category and current temporary measures |
| 3% | Specified reduced-rate categories listed by the Tax Department |
| 0% | Qualifying exports and intra-EU goods supplies, subject to evidence and statutory conditions; zero-rating differs from exemption |
Assess domestic taxable turnover over the preceding 12 months and the expectation for the next 30 days against the €15,600 threshold. Certain intra-EU services trigger registration without a turnover threshold; acquisitions have their own rules. Voluntary registration and input-tax recovery depend on eligibility, not simply on having business expenses. See the Tax Department’s registration obligations.
For a non-established supplier, determine who must account for VAT and whether reverse charge or a special scheme applies. Neither foreign incorporation nor low turnover alone resolves registration. Use the Tax For All registration forms and the relevant supporting evidence.
VAT Registration Scenarios
| Scenario | Registration Required? |
|---|---|
| Cyprus business, turnover > €15,600/year | Yes — mandatory |
| Cyprus business below the domestic threshold | Check cross-border services, acquisitions and other compulsory-registration triggers first |
| Non-established business supplying Cyprus customers | Assess the place of supply, reverse charge and any relevant exemption or special scheme |
| Eligible intra-EU distance sales | Union OSS may account for destination VAT; local stock and other supplies need separate review |
| Import of goods for resale | Assess import VAT, customs and subsequent supplies separately |
VIES (VAT Information Exchange System) is the EU reporting system for intra-EU supplies of goods and services. Cyprus VAT-registered businesses that make intra-EU supplies of goods or B2B services to VAT-registered customers in other EU member states must submit VIES returns.
VIES returns in Cyprus are submitted monthly, by the 15th day of the month following the reporting period. For example, the VIES return for January must be submitted by 15 February. This is a common source of compliance failures — businesses that incorrectly assume VIES is quarterly (as it is in some other EU member states) may incur penalties. See our accounting services for managed VAT and VIES filing.
VIES Filing: Monthly, Not Quarterly
Cyprus VIES returns are due monthly — by the 15th of the following month. This differs from some EU member states where VIES is quarterly. Missing the monthly deadline incurs automatic penalties.
Cyprus VAT Compliance Calendar
| Filing | Frequency | Due Date |
|---|---|---|
| VAT Return (VAT4) | Quarterly | 10th of the second month after the assigned VAT period |
| VIES Return | Monthly | 15th of following month |
| Intrastat (qualifying goods movements) | Monthly | 10th of the following month |
| OSS Return | Quarterly | Last day of month following quarter |
Under the general B2B service rule, VAT is normally accounted for where the business customer is established; reverse charge may shift liability to the customer. Exceptions depend on the service and relevant establishment. A Cyprus customer receiving foreign services must assess output VAT and any permitted input-tax deduction separately; a net-zero result is not automatic.
Keep evidence of the customer’s business status, VAT number where applicable and establishment receiving the service. Apply the correct invoice wording and VIES reporting when required. See the European Commission’s place-of-taxation guidance and invoicing rules.
For electronic services sold to EU consumers, the usual place of taxation is the customer’s country. The €10,000 cross-border threshold has restricted conditions, including establishment in only one Member State and the current and preceding calendar-year tests; it is not a blanket exemption for every software business.
Eligible suppliers may use Union or non-Union OSS, depending on establishment and supplies. OSS simplifies reporting of covered consumer sales; it does not replace every domestic VAT return or resolve B2B reverse-charge obligations. Identify what is supplied, who buys it and where the relevant parties are established. See the European Commission’s OSS guidance.
Check the Tax Department’s current VAT rates, Tax For All return guidance and VIES obligations. Match each return to the assigned reporting period and keep payment and submission evidence. This guide is general information; registration, exemptions and input-tax recovery require a transaction-specific assessment.
Related Guides
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently. Consult a qualified Cyprus adviser for guidance specific to your situation. The information on this page is general guidance only and does not constitute legal, tax, accounting, immigration or financial advice. Specific advice should be obtained based on the facts of each case.
— References linked in this article
Read each reference alongside the claim it accompanies and check current amendments before relying on it. General information — seek advice for your circumstances.
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