VAT

Cyprus VAT registration or de-registration, start up and day-to-day consulting of VAT treatments and compliance. This includes preparation and submission of VAT on behalf of the client, Company or individual - quarterly VAT forms.

The European Union value-added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each required to adopt a value added tax that complies with the EU VAT code. Different rates of VAT apply in different EU member states.

In Cyprus, different goods and services are split into 5 categories. Each category is taxed with its own VAT rate.

• 19% VAT – Standard rate of VAT in Cyprus. All goods and services that don’t fall in any of the other 4 categories are taxed at 19%.
• 9% VAT – Hotel accommodation, catering services, and other
• 5% VAT – Books, magazines and newspapers, theatre and cinema tickets, use of sporting facilities, and other.
• 0% VAT – Services relating to imports, exports, and other.
• Exempt from VAT – Supplies in the public interest (ambulance, postal services, non-for-profit organisations etc) and insurance, financial and management of mutual funds

VIES

Preparation and submission of monthly VIES forms as an authorised representative via Taxisnet electronic System for reporting Intra-Community - sales for Companies or Individuals trading within the European Union.

The VAT Information Exchange System (VIES) is an electronic means of transmitting information relating to VAT registration (i.e., validity of VAT numbers) of companies registered in the European Union. EU law requires that, where goods or services are procured within the EU, VAT must be paid only in the member state where the purchaser resides. For this reason, suppliers need an easy way to validate the VAT numbers presented by purchasers. This validation is performed through VIES.

VIES does not itself maintain a VAT number database. Instead, it forwards the VAT number validation query to the database of the member state concerned and, upon reply, it transmits back to the inquirer the information provided by the member state. This information includes at least a "YES/NO" answer on the existence and validity of the supplied number. It may also include additional information, such as the holder's name and address, if this is provided by the member state.

VIES optionally provides a unique reference number which can be used to prove to a tax authority that a particular VAT number was confirmed at time of purchase.