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Government Urged For Faster VAT Returns
Members of the Cyprus Parliament (MPs) have submitted a proposal before the Cypriot Parliament for the purpose of amending the VAT Law 95(I)/2000. Taxand Cyprus summarises the proposals' call to action.
The proposed amendments to the VAT Law intend to urge the state to make a VAT return in a timely manner, which is specified as within a period of 3 months commencing from the date of submission by the applicant. In the occurrance of the state's failure to make a VAT return within the 3 month time frame, interest will be imposed on the state concerning that specific case.
If the proposal to the amendment of the VAT Law is adopted, paragraph 4 article 20 of the VAT Law will be amended to include the amendment. What ought to be noted is that the interest imposed on the state, when delaying the return of VAT for a period exceeding 3 months, will be the interest imposed in accordance with the Single Defaulted Public Interest Law.
This proposal to the VAT Law is a positive action for multinationals, as well as local companies, as it will update the VAT return process, making it more efficient. The proposal should help to ensure that the market will be in a better position to maintain liquidity.
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