VAT, GST and Sales Tax in Cyprus

Summary

Name of the tax Value-added tax (VAT)
Date introduced 1-Jul-92
Trading bloc membership European Union
Administered by Tax Department, Indirect Taxation (http://www.mof.gov.cy)
VAT rates
Standard 19%
Reduced 5% or 9%
Other Zero-rated and exempt
VAT number format 12345678X
VAT return periods Quarterly
Thresholds
Registration EUR15,600 (in a 12-month period)
Distance selling EUR35,000 (annually)
Intra-Community acquisitions (for Intrastat) EUR100,000
Intra-Community supplies (for Intrastat) EUR55,000
Recovery of VAT by non-established businesses Yes

Scope of the tax

VAT applies to the following transactions:

  • The supply of goods or services made in Cyprus by a taxable person
  • The intra-Community acquisition of goods from another EU Member State by a taxable person (see the chapter on the EU)
  • Reverse-charge services received by a taxable person in Cyprus
  • The importation of goods from outside the EU, regardless of the status of the importer

Special rules apply to intra-Community transactions involving new means of transport and distance sales (see the chapter on the EU).

Who is liable

A taxable person is any business entity or individual that makes taxable supplies of goods or services or intra-Community acqui­sitions or distance sales, in the course of a business in Cyprus.

A person making taxable supplies must register at the end of any month if the value of taxable supplies in the year ended on the last day of that month exceeds EUR15,600. A person exceeding this threshold must notify the VAT Commissioner by submitting Form VAT 101 to the local VAT office within 30 days after the end of the relevant month. Registration is effective from the end of the month following the relevant month or from such earlier date as may be agreed.

If a person makes a supply of services to a taxable person in another EU Member State and if such services are taxable where the recipient of the services is established, the person making the supply must register from the date of making the supply. A per­son making such supply must notify the VAT Commissioner by submitting Form VAT 101 to the local VAT office within 30 days after the creation of the obligation. Registration is effective as of the date of the creation of the obligation.

A person must also register if reasonable grounds exist for believ­ing that taxable supplies in the next 30 days will exceed EUR15,600. The taxable person must submit Form VAT 101 to the local VAT office within the 30 days and registration is effec­tive from the beginning of that 30-day period.

Special rules apply to foreign or “non-established businesses.”

Group registration. VAT grouping is possible for two or more companies registered in Cyprus. The following are the principal aspects of grouping:

  • One member of the group is appointed as the representative member.
  • The representative member is responsible for the preparation and submission of the VAT returns and for paying or reclaiming any VAT on behalf of all group members.
  • Any business carried on by a member of the group is treated as being carried on by the representative member.
  • Any supply of goods or services performed by a member of the group to another member of the group is disregarded.
  • Any supply of goods or services by or to a third party is treated as a supply to or by the representative member.
  • All members of the group are responsible for any VAT payable by the representative member.

Non-established businesses. A “non-established business” is a business that has no fixed establishment in Cyprus. A non-established business that makes supplies of goods or services in Cyprus must register for VAT if it is liable to account for Cypriot VAT on the supply or if it makes intra-Community supplies or acquisitions of goods.

Consequently, a non-established business must register for Cypriot VAT if it makes any of the following supplies:

  • Intra-Community supplies
  • Intra-Community acquisitions
  • Distance sales in excess of the threshold
  • Supplies of goods and services that are not subject to the reverse charge (for example, goods or services supplied to pri­vate persons)
  • Supplies of services that are taxable in Cyprus if the reverse charge is not applicable to the recipient

Tax representatives. The VAT authorities may instruct any taxable person that does not have any business establishment, fixed estab­lishment, or usual place of residence within the EU to appoint a VAT representative to act on its behalf with respect to VAT. This representative is personally liable for any VAT that is not paid.

If the taxable person fails to appoint a VAT representative, the VAT Commissioner may require the taxable person to provide adequate security for the payment of any VAT that is or may become due.

Late-registration penalties. A penalty is applied to late registra­tion, assessed at EUR85 for each month that the failure to register continues. Interest is charged at the rate of 4% annually on the amount of outstanding VAT.

Reverse charge. The reserve-charge mechanism applies in situa­tions where services subject to specific exceptions are supplied by a person outside Cyprus to a person who is carrying on a business in Cyprus. The recipient is treated as having made the supply himself and as if that supply was a taxable supply and thus must account for output tax. The person will then have the right to claim a corresponding amount as input tax, subject to their partial exemption status.

The reverse charge should be treated like output tax with a cor­responding credit for input tax depending on the ability of a person to recover input tax.

Local reverse charge. If a VAT taxable person provides services or services together with goods in the context of construction, alteration, demolition, repair or maintenance of a building or any civil engineering project, including services provided by developers, contractors, architects, civil engineers and quantity counters, to another VAT taxable person who receives them in furtherance of his business, then the supplier will not charge VAT. The customer must account for the VAT in accordance with the reverse-charge rules.

Registration procedures. A person making taxable supplies must be registered at the end of any month if the value of the taxable supplies in a period of 12 months has exceeded EUR15,600. The person must notify the VAT authorities by submitting Form VAT 101 to the local VAT office within 30 days of the end of the rel­evant month. A person is also liable to register if there are reason­able grounds for believing that taxable supplies in the next 30 days will exceed EUR15,600, also by submitting Form VAT 101 to the local VAT office within 30 days. Online registration is not available, and the process can be completed within one to four weeks.

Deregistration. Registration is canceled in the following cases:

  • Decreasing business turnover. Where any registered person notifies the Tax Commissioner that the value of taxable sup­plies in one year has fallen below EUR13,668.81 and applies for cancellation of his registration, then an authorized VAT officer, if satisfied of this fact, shall cancel the registration with effect from the date of the notification or from any other later date as may be agreed between the Tax Commissioner and that person.
  • Termination of taxable supplies or termination of the intention to make taxable supplies. When a registered person ceases to make taxable supplies and is not entitled to remain registered or ceases to have the intention to make taxable supplies, he must notify the VAT Commissioner within 60 days of the date of the termination by submitting an Application for Cancellation of Registration (Form VAT 204). Failing to comply, the person is liable to a levy of EUR85. If an authorized VAT officer is satis­fied of the fact of the termination, he shall cancel the registra­tion with effect from the date that the person ceased to make taxable supplies or ceased to have the intention of making tax­able supplies or from any other later date as may be agreed between the VAT officer and that person.
  • Deregistration in the case of distance sales. A person registered for making or intending to make distance sales in Cyprus is liable to apply for deregistration when he no longer makes or intends to make distance sales in Cyprus and he is not liable to register in Cyprus for any other taxable transactions.
  • Deregistration in the case of acquisitions. A person registered for making or intending to make acquisitions in Cyprus is liable to apply for deregistration when he no longer makes or intends to make acquisitions in Cyprus.
  • Retrospective cancellation of registration. If the VAT officer is satisfied that on a specified date, a registered person was nei­ther entitled nor liable to be registered, the VAT officer can cancel the registration with effect from that date.

Digital economy. Further to the general B2B rules for the place of supply of services, digital services are also subject to use and enjoyment rules. Under these rules, the place of supply could be shifted to a different EU Member State or outside the EU, depending on where the recipient business effectively uses the services.

In addition, in the case of B2C supplies where the supplier is a non-EU entity, the place of supply is where the EU nontaxable customer is located, i.e., Cyprus in the case of Cypriot customers, and hence the non-EU supplier would have an obligation to reg­ister and account for Cypriot VAT.

Mini One-Stop Shop. Effective 1 January 2015, new rules apply with regard to VAT reporting for supplies of telecommunications, broadcasting and electronic services to non-VAT taxable custom­ers. Cyprus has harmonized its local VAT law to allow VAT reporting under the provisions of the Mini One-Stop Shop scheme. This involves accounting for VAT due on B2C supplies across EU Member States via a single VAT return through a rel­evant portal from the Cypriot VAT authorities.

VAT rates

The term “taxable supplies” refers to supplies of goods and ser­vices that are liable to a rate of VAT, including the zero rate. The term “exempt supplies” refers to supplies of goods and services that are not liable to tax. Exempt supplies do not give rise to a right of input tax deduction (see Section F). Some supplies are classified as “exempt with credit,” which means that no VAT is chargeable, but the supplier may recover related input tax. Exempt with credit supplies include exports of goods outside the EU and related services and intra-Community supplies of goods and intan­gible services supplied to another taxable person established in the EU or to recipients outside the EU (see the chapter on the EU).

The following VAT rates apply in Cyprus:

  • Standard rate: 19%
  • Reduced rates: 5% and 9%
  • Zero rate (0%)

The standard rate of VAT applies to all supplies of goods or ser­vices, unless a specific measure allows a reduced rate, the zero rate or exemption.

Examples of goods and services taxable at 5%

  • Services provided by undertakers
  • Services of writers and composers
  • Refuse collection
  • Waste treatment
  • Road cleaning
  • Fertilizers
  • Animal feeding stuffs
  • Liquefied petroleum gas
  • Various goods for incapacitated persons
  • Bus fares for rural and urban areas
  • Newspapers, books, magazines and similar items
  • Ice cream, chips and salted nuts
  • Water
  • Medicines
  • Food (except supplied in the course of catering)
  • Purchase, construction or renovation of a house or flat to be used as a private main residence

Examples of goods and services taxable at 9%

  • Restaurant services (excluding the supply of alcoholic drinks)
  • Transportation of passengers and their luggage by taxi
  • Accommodation provided by hotels and other similar establish­ments, including the provision of holiday accommodation
  • A combined provision of services that includes accommodation provided by hotels and other similar establishments and the provision of breakfast and/or half-board and/or full board, and/ or a combined service that includes, in addition to accommoda­tion, the provision of other catering facilities, such as alcoholic drinks, beer and wine

Examples of goods and services taxable at 0%

  • Supply, lease and repair of seagoing vehicles and aircraft and related services
  • International transport of persons

Examples of exempt supplies of goods and services

  • Real estate transactions (except “new buildings”)
  • Services of doctors and dentists
  • Social welfare
  • Finance (except “SWIFT” services)
  • Insurance
  • Human organs

Option to tax for exempt supplies. Not applicable.

Time of supply

The time when VAT becomes due is called the “time of supply” or “tax point.”

For a supply of goods, the tax point is the earliest of the following:

  • The date of delivery of goods
  • The date of issuance of the invoice
  • The date of payment

For a supply of services, the tax point is the earliest of the following:

  • The date of completion or performance of the services
  • The date of issuance of the invoice
  • The date of payment

If an invoice is issued within 14 days after the date of delivery of the goods or the performance of the services, the tax point is the invoice date, unless this date is overridden by the date of an ear­lier payment. The period of 14 days may be extended with the approval of the VAT authorities.

Intra-Community acquisitions. For an intra-Community acquisi­tion of goods, the tax point is the earliest of the following:

  • The 15th day of the month following the month in which the goods are sent
  • The date of issuance of the invoice by the supplier

Intra-Community supplies. For an intra-Community supply of goods, the tax point is the earliest of the following:

  • The 15th day of the month following the month in which the supplier sent the goods or the recipient receives them in order to transfer them outside Cyprus
  • The date of the issuance of the invoice by the supplier

Reverse-charge supplies. For reverse-charge supplies, the tax point is the earliest of:

  • The date of completion or performance of the services
  • The date of issuance of the invoice
  • The date of payment

For continuous supplies of reverse-charge services, please refer to the paragraph below for continuous supplies of services.

Imported goods. The time of the supply for imported goods is either the date of importation, or the date on which the goods leave a duty suspension regime.

Cash accounting. The scheme is applicable since 20 December 2013 for businesses whose turnover does not exceed EUR25,000 in the last 12 months.

Continuous supplies of services. In the case that no invoices have been issued and/or no payments have been made for a period of a calendar year, an annual tax point is created.

Prepayments. Prepayments create a tax point for Cypriot VAT purposes for the value of the paid amount. However, in the case of intra-Community supplies, a prepayment does not create a tax point for Cypriot VAT purposes.

Leased assets. The time of supply for goods (see above) applies for finance leases.

Recovery of VAT by taxable persons

A taxable person may recover input tax, which is VAT charged on goods and services supplied to it for business purposes. Input tax is generally recovered by deduction from output tax, which is VAT charged on supplies made.

Input tax includes VAT charged on goods and services supplied within Cyprus, VAT paid on imports of goods and VAT self-assessed on the intra-Community acquisition of goods and reverse-charge services (see the chapter on the EU).

A valid tax invoice or customs document must generally accom­pany a claim for input tax.

Nondeductible input tax. Input tax may not be recovered on pur­chases of goods and services that are not used for business purposes (for example, goods acquired for private use by an entrepreneur). In addition, input tax may not be recovered for some items of business expenditure.

The following lists provide some examples of items of expendi­ture for which input tax is not deductible and examples of items for which input tax is deductible if the expenditure is related to a taxable business use.

Examples of items for which input tax is nondeductible

  • Purchase, hire and lease of saloon cars
  • Accommodation, food and entertainment (other than for employ­ees)
  • Private expenditure

Examples of items for which input tax is deductible
(if related to a taxable business use)

  • Purchase, hire, lease and maintenance for vans and trucks
  • Fuel
  • Parking costs
  • Attending conferences, seminars and training courses
  • Business gifts (if valued at more than EUR17.09, output VAT is due)
  • Business use of home telephone
  • Mobile phones (the invoices must be issued in the name of the business)
  • Advertising

Noneconomic activities. A taxable person who is engaged in noneconomic activities, such as holding activities, may not deduct input VAT on local and reverse-charge expenses that are directly related to noneconomic activities.

A taxable person that carries out both economic and noneco­nomic activities and that purchases local and reverse-charge ser­vices relating both to its economic and noneconomic activities must apply a reasonable basis for the apportionment of the input VAT on the general overhead expenses to economic and noneco­nomic activities. A taxable person may deduct the portion of input VAT based on this reasonable percentage of input VAT attributed to economic activities of the taxable person.

Partial exemption. Input tax directly related to the making of exempt supplies is generally not recoverable. If a Cypriot taxable person makes both exempt and taxable supplies it may not recover input tax in full. This situation is referred to as “partial exemption.”

Input tax directly relating to taxable supplies is fully recoverable and input tax directly relating to exempt supplies is not recover­able. Non-attributable input tax must be apportioned. The stan­dard method for apportioning input tax is to multiply non-attributable input tax by the ratio of the value of taxable supplies to the value of total supplies.

The VAT authorities may approve or direct the use by a taxable person of another reasonable method if the result achieved by the standard method is considered to be distortive.

The services supplied by businesses in the insurance and finan­cial sectors are generally exempt from VAT, with no right to input tax deduction. However, input VAT paid by businesses that pro­vide insurance and financial services, such as insurance compa­nies, banks and other financial institutions, may be reclaimed if these services are supplied to persons established in countries outside the EU. Services covered by this measure include the supply of life and general insurance, the granting of loans and other credit facilities, the operation of bank accounts, foreign-exchange dealings and transactions that relate to shares, bonds and other securities.

If a business provides services described above to customers both in the EU and outside the EU, the amount of refundable input VAT is apportioned accordingly.

Capital goods. Capital goods are items of capital expenditure that are used in a business over several years. Input tax is deducted in the VAT year in which the goods are acquired. The amount of input tax recovered depends on the taxable person’s partial exemp­tion recovery position in the VAT year of acquisition and first use. However, the amount of input tax recovered for capital goods must be adjusted over time if the taxable person’s partial exemp­tion recovery percentage changes during the adjustment period.

The capital goods scheme in Cyprus applies to the following transactions:

  • The acquisition of tangible fixed assets maintained and used by a business (the cost of repairs and maintenance are not included in the value of the tangible fixed assets) and intangible fixed assets such as the use of property rights, trademarks, patents and goodwill that have more than one use and a value of EUR17,086 or more
  • The transfer of all or part of a building including the land if the transfer takes place before the first occupation
  • The transfer of ownership of all or part of a building including the land under a sales or lease agreement that is transferred at the end of the agreement, if the transfer takes place before the first occupation
  • The construction of buildings constructed by a taxable person on immovable property not owned by the taxable person

The input tax adjustment lasts for a period of five years for the capital goods except for immovable property for which the input tax adjustment lasts for a period of 10 years.

The adjustment is applied each year following the year of acqui­sition to a fraction of the total input tax. The adjustment may result in either an increase or a decrease of deductible input VAT, depending on whether the ratio of taxable supplies made by the business has increased or decreased compared with the year in which the capital goods were acquired and first used.

Refunds. If the amount of input tax recoverable in a quarterly period exceeds the amount of output tax payable in that period, the taxable person has an input tax credit. The input tax credit is offset against future payments or it is refunded to the taxable person after submission of a claim (Form VAT 4B) if the input VAT relates to one of the following categories:

  • The making of zero-rated supplies
  • The supply of services provided outside Cyprus
  • The acquisition of fixed assets

Preregistration costs. VAT costs paid on the purchase of services during the six months prior to the effective date of registration can be recovered, and for the purchase of goods, the recoverable period is three years prior to the effective date of registration.

Write-off of bad debts. Where a taxable supply has been made, the VAT has to be accounted and paid for with reference to the quar­ter in which the tax point falls, irrespective of whether payment has been received from the customer. The VAT can be recovered after making a claim to the Commissioner of VAT on the grounds that payment from the customer has not been received provided that:

  • The VAT on the supply has been paid to the VAT authorities.
  • The consideration for the supply has been written off in the vendor’s records as a bad debt.
  • All necessary steps to recover the consideration have been taken.
  • A period of 12 months has elapsed.

A claim must be made within a period of four years following the later of:

  • The date on which the consideration that has been written off as a bad debt becomes due and payable Or
  • The date of supply

Where the purchaser is a taxable person, the claimant must notify that purchaser that bad debt relief is being claimed.

Recovery of VAT by non-established businesses

Cyprus refunds VAT incurred by businesses that are not estab­lished in Cyprus nor registered for VAT there. Non-established businesses may claim Cypriot VAT to the same extent as VAT-registered businesses.

For businesses established in the EU, refund is made under the terms of the EU 2008/9/EC Directive. For businesses established outside the EU, refund is made in accordance with the terms of the EU 13th Directive.

For a person established in a country outside the EU, the refund system applies if that country provides reciprocal arrangements for similar repayments to be made to Cypriot businesses. In addi­tion, to take advantage of this refund system, the person must not be established or registered in any of the other EU Member States.

For the general VAT refund rules applicable to the EU 2008/9/EC Directive and 13th Directive refund schemes, see the chapter on the EU.

Refund application. For a person registered for VAT in an EU country, a claim for repayment must be made by 30 September of the calendar year following the refund period. To obtain a refund of Cypriot VAT, a taxable person not established in Cyprus must submit an application in electronic format in the EU Member State of its establishment via the electronic portal of that Member State.

If the refund application relates to a refund period of less than one calendar year but not less than three months, the minimum amount of VAT for which an application for a refund can be sub­mitted is EUR400. If the refund application relates to a refund period of a calendar year or the remainder of a calendar year, the minimum amount of VAT for which an application for a refund can be submitted is EUR50.

For all other persons, claims with respect to VAT incurred in the one-year period from 1 July to 30 June must be made within six months of the end of that one-year period (that is, by 31 December).

Claims may be submitted in Greek. The application for refund must be accompanied by the appropriate documentation (see the chapter on the EU).

The minimum claim period is three months; the maximum period is one year. The minimum claim for a period of less than a year is EUR25.63. For an annual claim, the minimum amount is EUR205.03.

Applications for refunds of Cypriot VAT may be sent to the fol­lowing address:

Commissioner of Tax VAT Headquarters 1471 Nicosia

Cyprus

Invoicing

VAT invoices and credit notes. A Cypriot taxable person must generally provide a VAT invoice for all taxable supplies made, including exports and intra-Community supplies. Invoices are not automatically required for retail transactions valued at less than EUR85 (if the supply is not to a person in another EU Member State), unless requested by the customer.

A VAT invoice is necessary to support a claim for input tax deduc­tion or a refund under the EU 2008/9/EC Directive or 13th Directive refund schemes (see the chapter on the EU).

A VAT credit note may be used to reduce the VAT charged and reclaimed on a supply of goods or services. Credit notes adjust­ing the initial amount of VAT charged may be issued if a genuine mistake or overcharge has been made or if agreement on a dis­count has been reached. To be valid for VAT purposes, the credit note must be issued within one month after the date on which the mistake is discovered or the agreement on the discount is reached. It must be marked “Credit Note” and contain details of the origi­nal supply and the circumstances under which the credit is given (for example, return of faulty goods).

Invoice for prepayments. An invoice should be issued, if a prepay­ment has been received for the supply of goods or services to a customer.

Electronic invoicing. Effective 1 January 2013, the VAT law has been amended to permit electronic invoicing in line with EU Directive 2010/45/EU.

Proof of exports and intra-Community supplies. Cypriot VAT is not chargeable on supplies of exported goods or on intra-Com­munity supplies of goods (see the chapter on the EU). How ever, to qualify as VAT-free, exports and intra-Community supplies must be supported by evidence that the goods have left Cyprus. Acceptable proof includes the following documentation:

  • For an export, a copy of the export document, officially vali­dated by the Department of Customs and Excise, showing the supplier as the exporter
  • For an intra-Community supply, a range of commercial docu­mentation, such as purchase orders, transport documentation, proof of payment and contracts

Foreign-currency invoices. If Cypriot VAT is charged on an invoice, the invoice must be issued in euros (EUR), effective from 1 January 2008. If an invoice is issued in foreign currency, the amount before VAT and the VAT amount must be converted to euros using the exchange market rate or the rate issued by the Department of Customs and Excise.

B2C invoices. Effective 1 January 2015, new rules apply to the place of supply for supplies of telecommunications, broadcasting and electronic services to non-VAT taxable customers. Please refer to the European Union chapter.

VAT returns and payment

VAT returns. Cypriot VAT returns are submitted for quarterly periods. Quarterly VAT returns must be filed by the 10th day of the second month following the end of the VAT quarter. Any VAT due must be paid by this date.

Special schemes

The optional profit margin scheme for the sale of secondhand cars and some other used goods. The method of calculating the taxable value and output tax of supplies of secondhand goods differs from the standard rules, as do the records that a taxable person is required to keep. The tax due is taken to be included in the gross margin of the trader, provided that a margin has been realized. The sale of assets previously used by a company is a taxable supply if the company is already a taxable person.

The optional special regime for farmers. Sales by farmers of their produce are standard rated; alternatively, farmers can choose to claim 5% of the value of their sales to taxable persons as notion­al input tax and do not have to charge output tax.

Special regime for tour operators. The method of calculating the taxable value for tour operators is taken to be the travel agent’s gross margin on the sale of package tours after deduction of the actual cost to the travel agent.

Optional retail schemes. Under these schemes, the method of calculating the taxable value and output tax on supplies deviates from the general rules, as do the books and records that retailers must keep.

Retail export scheme. This is an optional scheme for registered retailers where a supply of goods, on which a positive rate of VAT was originally imposed, is converted to a zero-rated supply, through correction of the VAT account after the retailer receives certification from Customs that the goods were exported.

Electronic filing and archiving. The same rules and deadlines apply to electronic filing and archiving as apply to hard copy returns. Currently, the VAT return forms (VAT Return form 4) are submit­ted both manually and electronically to the VAT authorities. However, the House of Representatives is expected to approve shortly a bill in relation to the electronic submission of the VAT return forms by a taxable person. This means that in the future, the VAT return forms should be submitted only electronically.

Annual returns. Not applicable.

Penalties

A one-off penalty of EUR51 per VAT return is charged for the late submission of the VAT return. Late payment of outstanding VAT results in the imposition of a penalty of 10% of the outstand­ing amount. Interest is charged at the rate of 4% annually on the amount of VAT outstanding. The 4% interest rate applies to the late payment of VAT, late registration, and late submission of the VAT return. The interest rate does not fluctuate.

Penalties are also assessed for the following offenses:

  • Late registration: a penalty of EUR85 for each month that the failure continues
  • Failure to apply the reverse charge: a penalty of EUR85
  • Failure to keep records for a prescribed period: a penalty of EUR341
  • Issuing an unauthorized invoice: a penalty of EUR85
  • Fraudulent evasion of VAT: up to three years’ imprisonment or a fine up to three times the amount due, or both
  • Receipt of goods on which VAT was evaded: up to 12 months’ imprisonment or a fine of EUR8,543, or both
  • VAT shown in assessments issued by the VAT Commissioner and not paid: up to 12 months’ imprisonment or a fine of EUR8,543, or both

EU filings

Intrastat. A Cypriot taxable person that trades with other EU countries must complete statistical reports, known as Intrastat, if the value of either its sales or purchases of goods exceeds cer­tain thresholds. Separate reports are required for intra-Communi­ty acquisitions (Intrastat Arrivals) and for intra-Community supplies (Intrastat Dispatches).

The Intrastat thresholds for 2016 are EUR100,000 for arrivals and EUR55,000 for departures. In addition, special thresholds have been set at EUR1.85 million annually for arrivals and EUR5.8 mil­lion for departures. Traders that make intra-Community supplies and acquisitions below these thresholds are not required to com­plete all the information required on the Intrastat return. Intrastat forms are submitted electronically through the TAXISnet system and has been obligatory for all taxable persons who are registered for Intrastat purposes in Cyprus and submit monthly Intrastat forms to the VAT authorities. Intrastat returns must be submitted elec­tronically by the 10th day of the month following the end of the month to which they relate. Cypriot taxable persons must complete Intrastat declarations in euros, rounded up to the nearest whole number. The Intrastat return period is monthly.

The VAT authorities impose a one-off penalty of EUR15 for each delayed form. If the return is not submitted within 30 days, the offense is treated as a “civil wrong,” and in the case of convic­tion, a fine up to EUR2,562 applies.

EU Sales Lists (VIES form). Every VAT-registered person who supplies goods and/or provides services to VAT-registered per­sons in other EU Member States has been required to submit a VIES form every month to the Cypriot VAT authorities.

The VIES form must be submitted electronically by the 15th day of the month following the end of the relevant month. The VIES form must be submitted even if no intra-Community supplies are made in the month.

If the VIES form is not submitted on time, a penalty of EUR50 is imposed per late form. If the form is not submitted for more than three months, it is treated as a civil wrong. In the case of a conviction, a penalty of an amount not exceeding EUR2,562 is imposed. If the VIES form contains misstatements or omissions, a penalty of EUR15 is imposed unless, within the two-month period after the submission of the VIES form, a revised form is submitted.