VAT Registration & De-Registration

VAT Registration Threshold

If your business is engaged in taxable activities and exceeds the annual turnover threshold, which is currently set at €15,600, it is mandatory to register for VAT in Cyprus. Our dedicated team will assist you throughout the VAT registration process, ensuring compliance with all legal requirements and providing you with expert advice to optimize your VAT strategy.

 Voluntary VAT Registration

Businesses with a taxable turnover below the registration threshold may voluntarily register for VAT. Voluntary registration can be beneficial in certain cases, such as when a business incurs significant input VAT on expenses, allowing it to claim a refund.

 VAT Group Registration

In Cyprus, related businesses can apply for VAT group registration. This allows businesses within the group to file a single consolidated VAT return, simplifying VAT compliance and administration.

Penalties and Obligations

Failure to comply with VAT registration and de-registration obligations can lead to penalties, such as:

• Late VAT registration: A penalty of €85 for each month of delay
• Late notification of de-registration: A penalty of €85 for each month of delay

1. Assessment and Eligibility: Our experts will evaluate your business operations to determine if VAT registration is necessary based on your turnover and activities. We will explain the implications of VAT registration and help you understand the benefits and obligations associated with it.
2. Application Preparation: We will prepare all the necessary documentation and forms required for VAT registration, including the completion of the VAT application form and submission to the Cyprus Tax Department. We will ensure that the application is accurate, complete, and submitted within the prescribed timeframe.
3. Communication with Authorities: As your representative, we will liaise with the Cyprus Tax Department on your behalf, handling any queries or additional information requests they may have during the registration process. We will keep you informed and updated at every stage.
4. VAT Compliance: Once your business is successfully registered for VAT, we will guide you through the compliance requirements, such as issuing VAT invoices, maintaining proper records, and submitting periodic VAT returns. Our team will provide ongoing support to ensure that you meet all your VAT obligations effectively.

There may be instances where your business is no longer required to be VAT registered in Cyprus. Whether you’re closing your business, ceasing taxable activities, or your turnover falls below the de-registration threshold, we can assist you with the VAT de-registration process.

Our VAT de-registration services include:

1. Eligibility Assessment: We will assess your business circumstances to determine if de-registration is applicable. We will review your turnover, activities, and other relevant factors to ensure compliance with de-registration requirements.
2. De-Registration Application: Our team will prepare the necessary forms and documentation for VAT de-registration, including the completion of the de-registration application form and submission to the Cyprus Tax Department. We will manage the process efficiently and ensure all necessary details are provided.
3. Communication with Authorities: We will handle all communication with the Cyprus Tax Department, addressing any queries or additional information requirements during the de-registration process. We will keep you informed and provide assistance throughout.
4. Compliance Closure: We will guide you through the necessary steps to close your VAT compliance obligations, such as submitting final VAT returns, settling any outstanding payments, and maintaining proper records as required by the Cyprus Tax Department.

At IBCCS Tax, we pride ourselves on delivering accurate, efficient, and reliable VAT registration and de-registration services in Cyprus. Our team of experts stays up-to-date with the latest VAT regulations, ensuring compliance with the ever-changing legal framework. With our assistance, you can focus on your core business activities while leaving the complexities of VAT to us.