Value Added Tax (VAT) is levied in Cyprus at a standard rate of 19%, with reduced rates of 9% (restaurants, accommodation, transport, cultural services) and 5% (basic foodstuffs, pharmaceuticals, books). Understanding when and how to register — and what your ongoing obligations are — is essential for any Cyprus-based business.
When is Registration Mandatory?
You must register for VAT in Cyprus if: 1. Your taxable turnover in the past 12 months exceeded €15,600, OR 2. You expect your taxable turnover in the next 30 days to exceed €15,600, OR 3. You acquire goods from EU member states above the acquisition threshold.
Voluntary registration is also possible if your turnover is below the threshold, which is often advantageous for companies in B2B supply chains that want to reclaim input VAT.
The Registration Process
Registration is handled through the Cyprus Tax Department's online portal (TaxisNet). The process involves: 1. **Creating a TaxisNet account** (if not already registered for income tax) 2. **Completing VAT Form 101** — the VAT registration application 3. **Submitting supporting documents** — certificate of incorporation, Memorandum and Articles of Association, proof of business activity, bank account details 4. **Receiving your VAT number** — typically within 2–4 weeks of a complete application
Ongoing Obligations
Once registered, you must: - Charge VAT on all taxable supplies at the correct rate - File quarterly VAT returns (or monthly if agreed with the Tax Department) - Pay any VAT due by the deadline (usually the 10th of the second month following the quarter) - Keep detailed accounting records for at least 6 years - Issue compliant VAT invoices for all B2B transactions
VIES and Intra-EU Supplies
If you supply goods or services to VAT-registered businesses in other EU member states, you'll also need to register for VIES (VAT Information Exchange System) and submit periodic VIES statements. We recommend seeking advice before commencing intra-EU trade.
Our team handles VAT registrations, quarterly filings, and ongoing compliance for dozens of Cypriot businesses. Contact us to get started.
