This guide is for e-commerce companies that sell online via web-stores or at marketplaces.
Web: Cyprus’s Tax Agency
VAT Standard rate
VAT Reduced rate
€35 000 (distant sales)
According to the VAT Law, any person making distance sales (sales from a person established in another Member State), is liable to register for VAT purposes in Cyprus and account for VAT in Cyprus if, in the period starting from the 1st January of the year, the value of distance sales exceeds €35.000. Failure to comply renders the person liable to a levy of €85 for every month of the delay or refusal or omission.
There is also the right for voluntary registration when the threshold is not reached. It is noted that persons making zero-rated supplies are also liable to be registered.
To check if you have exceeded the threshold add together the total value of distance sales, you should exclude:
- Intra-Community supplies of goods,
- Supplies of new means of transport or of goods that are subject to excise duty,
- Those supplies for which the margin scheme is applicable.
If you paid invoices before VAT registration you may deduct them after your registration.