VAT & VIES
Complete guide to Cyprus VAT: 19% standard rate, registration threshold (€15,600), VIES monthly reporting, reverse charge on B2B services, OSS/IOSS for e-commerce, and penalties for non-compliance.11 min read · By Nexora Cyprus editorial team · Reviewed by an ICPAC-registered Cyprus tax adviser engaged by Nexora
Quick Summary
Cyprus VAT standard rate is 19%. Mandatory registration is required once taxable turnover exceeds €15,600 per 12-month period. VIES returns are due monthly by the 15th of the following month. VAT returns (VAT4) are quarterly, due 40 days after quarter-end. Late VAT filing carries a €51 penalty per return; VIES non-compliance carries €50 per month.
VAT Rates in Cyprus (2026)
| Rate | Category |
|---|---|
| 19% | Standard rate — most goods and services |
| 9% | Restaurants, hotels, passenger transport, certain food items |
| 5% | Books, newspapers, pharmaceutical products, certain medical equipment, admission to cultural events |
| 0% | Exports outside EU, international transport, certain financial services, intra-EU supply of goods (with VAT in destination country) |
A business established in Cyprus must register for VAT registration when its taxable turnover (supplies subject to VAT, including zero-rated) exceeds €15,600 in any 12-month period, or when it is anticipated to exceed this threshold in the next 30 days. Voluntary registration is available below this threshold and is often recommended where the business makes significant purchases subject to VAT (enabling input tax recovery). The Cyprus Tax Department handles all VAT registrations via the TAXISnet portal.
Non-EU businesses making taxable supplies in Cyprus are required to register regardless of turnover. EU businesses may be required to register for certain supply types (e.g., EU B2C services above the €10,000 threshold — unless the OSS scheme is used).
VAT Registration Scenarios
| Scenario | Registration Required? |
|---|---|
| Cyprus business, turnover > €15,600/year | Yes — mandatory |
| Cyprus business, turnover ≤ €15,600/year | No — optional (voluntary) |
| Non-EU business making B2B supplies in Cyprus | Yes — VAT registration or appointment of fiscal representative |
| EU business — intra-EU B2C goods | Can use OSS instead of local registration |
| Import of goods for resale | Yes |
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 | 40 days after quarter-end |
| VIES Return | Monthly | 15th of following month |
| Annual VAT recapitulative statement | Annual | 31 March (following year) |
| OSS Return | Quarterly | Last day of month following quarter |
For B2B cross-border services within the EU, the reverse charge mechanism shifts the VAT accounting obligation from the supplier to the customer. A Cyprus business receiving B2B services from an EU supplier does not pay VAT to the supplier — instead, it self-accounts for the VAT in Cyprus (both accounting for input and output VAT simultaneously, giving a net zero effect in most cases). Once VAT-registered, companies also have annual filing and audit requirements to maintain.
Cyprus businesses supplying services to VAT-registered EU customers should not charge Cyprus VAT — the customer self-accounts in their own jurisdiction. Correctly applying the reverse charge requires a valid EU VAT number from the customer, verifiable on the VIES system.
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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.
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