Value Added Tax (VAT) is charged on most goods and services sold in Cyprus. Whether your company needs to register depends mainly on its turnover, where it is established and who its customers are. Here is how to work it out.
When VAT registration is mandatory
A business established in Cyprus must register for VAT once its taxable turnover exceeds €15,600 in a 12-month period, or when it expects to pass that level. Turnover means the value of the taxable supplies you make, not your profit.
Some situations require registration regardless of turnover, for example:
- Businesses not established in Cyprus that make taxable supplies in Cyprus generally have no threshold.
- Buying services from abroad that you must account for under the reverse charge.
- Buying goods from other EU countries above the intra-EU acquisitions threshold.
When voluntary registration makes sense
If you are below the threshold you can still register voluntarily. It is often worth it when:
- You have significant costs with VAT that you want to reclaim.
- Your clients are VAT-registered businesses, so charging VAT does not affect their price.
- You want to look established when dealing with larger companies.
Registering means charging VAT on your sales, filing returns on time and keeping proper records. If most of your clients are private individuals, voluntary registration can make you more expensive, so weigh it up first.
Cyprus VAT rates at a glance
- 19% standard rate, which applies to most goods and services.
- 9%, 5% and 3% reduced rates for specific categories.
- 0% zero rate, plus some exempt supplies.
Selling to other EU countries
- To VAT-registered businesses: sales are usually invoiced without Cyprus VAT under the reverse charge. You will need VIES registration and to file recapitulative statements.
- To private customers (online sales): once your EU-wide distance sales pass €10,000 a year, VAT is due in each customer’s country. The One-Stop Shop (OSS) lets you declare it all in one return. See our OSS guide.
How to register
- Get your tax number first. Your company needs a Tax Identification Code (TIC).
- Prepare the application with your company documents, a description of your activity and your expected turnover.
- Submit it to the Tax Department and answer any follow-up questions.
- Receive your Cyprus VAT number, which starts with CY, and start charging VAT from the effective date.
After registration
- Issue VAT invoices that show your VAT number and the VAT charged.
- File VAT returns, normally every quarter, and pay any VAT due on time.
- File VIES statements, usually monthly, if you supply businesses in other EU countries.
- Keep records of sales and purchases for inspection.
Not sure whether you need to register? We check your situation and handle the VAT registration for one fixed fee.
Frequently asked questions
What is the VAT registration threshold in Cyprus?
A business established in Cyprus must register once its taxable turnover exceeds €15,600 in a 12-month period. Businesses not established in Cyprus generally have no threshold and must register as soon as they make taxable supplies there.
What is the standard VAT rate in Cyprus?
The standard rate is 19%. Reduced rates of 9%, 5% and 3% apply to certain goods and services, and some supplies are zero-rated or exempt.
Can I register for VAT voluntarily?
Yes. Businesses below the threshold can register voluntarily, which can make sense if you want to reclaim VAT on costs or work with VAT-registered clients.
How often are VAT returns filed in Cyprus?
VAT returns are normally filed quarterly. If you trade with VAT-registered businesses in other EU countries, VIES recapitulative statements are usually filed monthly.