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VAT Update 1/2019

VAT Circulars published so far in 2019 by the Tax Department in Cyprus 

13 June 2019


The Tax Department in Cyprus has issued 4 VAT Circulars so far in 2019. You can find the relevant links below.



(VAT) 230 of 20 Feb 2019 Transactions in relation to prepaid electronic means of payment


(VAT) 231 of 21 Feb 2019 VAT treatment of admission to sporting events and use of sporting facilities


(VAT and Tax) 4 of 22 Mar 2019 Leasing of recreational vessels (yachts)


(VAT) 233 of 2 Apr 2019 Supplies of undeveloped building land


Please feel free to contact me if you want to discuss any of the above topics. I will be happy to assist. 

 Scales of Justice

VAT Update 5/2018

Right to input VAT deduction in respect of acquisitions made by a taxpayer declared ‘inactive’  

12 September 2018


The European Court of Justice issued today its judgement in case C-69/17 (Siemens Gamesa) re-iterating that in so far as the substantive requirements giving right to deduct input VAT have been satisfied and that right of deduction has not been invoked fraudulently or abusively, a company in a situation such as Gamesa would be entitled to exercise its right of deduction by means of VAT returns filed or invoices issued after the reactivation of its VAT identification number.


Penalising the failure on the part of the taxable person to comply with the obligations relating to accounts and tax returns (formal requirement) by denial of the right of deduction clearly goes further than is necessary to attain the objective of ensuring the correct application of those obligations, since EU law does not prevent Member States from imposing, where necessary, a fine or a financial penalty proportionate to the seriousness of the offence.


Click at the link provided for the full text of the judgment.

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VAT Update 4/2018:

Local VAT refunds in Cyprus are now made only by wire transfer

11 September 2018

The Tax Department in Cyprus reminded all VAT registered taxpayers that as from 1 August 2018 all local VAT refunds are made only by wire transfer and no longer with the issue of bank cheques. 

Taxpayers who have not already submitted their bank details to the Tax Department were invited again to submit the form '(ΤΦ1900) 2017' physically at their Local District Tax Office or by post (to the address “Tax Department, 1471 Nicosia”).

Subsequently, any changes of bank account details, should be notified to the Tax Commissioner in writing by submitting the new form '(Τ1900) 2017'.


VAT Update 3/2018

13 February 2018

Notes on the recent VAT Circulars published by the Tax Department in Cyprus.


VAT Update 2/2018

5 January 2018

As from 2 January 2018, Cyprus is imposing 19% VAT on the supply of undeveloped building land.


VAT Update 1/2018

2 January 2018

Starting from 13 November 2017, certain commercial leases/rents of immovable property in Cyprus are subject to 19% VAT.