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Amendments made to VAT legislation

Cyprus
18 Jul 2013

The Cypriot Parliament has passed amendments to VAT legislation on 11 July 2013. Taxand Cyprus highlights the key aspects of the amendments.

The amendments relate to reducing charges for failure to pay VAT on due dates specified by law. Specifically approved are the following:
 
A taxable person who submits the VAT return and pays the amount of VAT due by 10 December 2013 shall not be subject to the following:

  • Imposition of interest for delay in payment of VAT
  • Imposition of 10% additional tax for failure to pay VAT
  • Additional tax for tax amount certified by the VAT Commissioner as VAT tax due
  • Enforcement of any penalties if the failure to pay VAT considered as criminal offence

The above relate to periods ending on:

  •  28 February 2013
  • 31 March 2013
  • 30 April 2013
  • 31 May 2013

 A taxable person who submits the VAT return and pay the amount of VAT due by December 10 2013 will receive the following advantages:

  • The additional tax on non-timely payment of VAT is reduced from 10% to 5%
  • The additional tax for the tax amount certified by the VAT commissioner reduced from 10% to 5% 

The above relate to periods ending on:

  • 30 June 2013
  • 31 July 2013
  • 31 August 2013
  • 30 September 2013

 The interest on late payment of VAT due for these periods remain valid as provided by law.


Your Taxand contacts for further queries are:
Chris Damianou
T. +357 22 699 222
E. chris.damianou@eurofast.eu

Maria Damianou
T. +357 22 699 222
E. maria.damianou@eurofast.eu

 

Taxand's Take

The changes adopted are intended to assist the existing situation in the financial sector in Cyprus by relieving the taxpayers’ burden.

Taxand's Take Author

Chris Damianou