Important Amendments to the VAT law

Important Amendments to the VAT law

On 20 August 2020, the Cyprus Parliament passed the below amendments to the VAT law which officially came into force immediately after its publication in the Official Gazette of the Republic.

  1. A new definition of “legal person”

Article 11B

The phrase “any person” replaces the phrase “taxable person”. As a result, the taxable person receiving services for which he is liable for a reverse charge must account for VAT, regardless of whether the person providing these services is registered for VAT or not.

  1. New Article 11E on VAT reverse charge

The reverse charge system is applied for deliveries between taxable persons related to the following goods:

  • mobile phones,
  • integrated circuits, such as microprocessors and central processing units
  • Game-consoles, PC tablets, and laptops.

The above amendment is effective from 1/10/2020 and applies to all transactions made with a taxable person in the Republic for these goods. The obligation to the buyer is mandatory regardless of whether the seller is registered for VAT purposes.

  1. VAT refunds
  2. Penalties
  3. Deadline for submitting objections
  4. Amendment of paragraph 2 of Article 54A of the VAT law
  5. Registration of a person not established in the Republic
  6. Change to the definition “renovation”
  7. Zero rate for international transport
  8. Amendment of Article 14

Σημαντικές τροποποιήσεις στην φπα νομοθεσία 2020

Important amendments in Vat Law 2020

If you would like any further assistance or consultation regarding the Value Added Tax please contact us