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On June 11, 2020 the Court of Justice of the European Union (‘CJEU’) gave its judgement in case of Vodafone Portugal (C-43/19). The case concerns whether VAT is due on amounts received by Vodafone from customers that have terminated their contracts early and before the end of the contractual tie-in period.

On 3 July 2020 the Cyprus Parliament published legislation (Law Amending the VAT Law (No.2) of 2020) relating to the “quick fixes” package provided for by EU Directive 2018/1910.

The Tax Department issued an announcement earlier this week in relation to the reinstatement of quarterly reporting periods and the payment of VAT for the period ending 31/05/2020.

The recent VAT payment deferral arrangements were a welcome concession for businesses in the early stages of the coronavirus pandemic.

Following on with the most recent measures announced by the Minister of Finance in support of the Cyprus economy, the Council of Ministers has issued a new Decree (Κ.Δ.Π. 268/2020) on 23/6/2020. This decision effectively reduces the applicable VAT rate for certain services relating to the tourism industry, from 9% to 5%.

A government bill passed, to offer tax credits to landlords as an incentive to lower rents to help tenants who find themselves in financial difficulty due to lockdown against COVID-19.

Further to our previous VAT Alert regarding the amendments of the VAT reporting periods and payment deadlines for certain businesses who have received notifications from the Tax Department pursuant to Decree ΚΔΠ 170/2020, the Tax Department issued an updated announcement on 21/4/2020, in order to provide the following clarification:

In an effort to satisfy the increased cash-flow requirements of the Cyprus Government resulting from the COVID-19 outbreak, the Council of Ministers issued on 16 April 2020 a new Decree (ΚΔΠ 170/2020).

The Ministry of Finance has issued an announcement declaring that the Decree will not be brought into effect.

On 2 April 2020, the Council of Ministers issued a Decree requiring certain categories of taxpayers to make advanced VAT payments.

Following our alert issued on 18 March 2020, we note that the House of Representatives proceeded with the approval of the relevant Tax and VAT legislations on Friday 27th March 2020 in response to the COVID-19 outbreak. These amendments were announced in the Government Gazette and include a number of Tax deferral concessions, an overview of which is provided below.

As the world faces its biggest healthcare challenge in more than a generation, the social impacts of the coronavirus (COVID-19) will be fast and prolonged.

The economic consequences of the Coronavirus disease 2019 (COVID-19) on future trading assumptions, and the direct impact on many companies, may place some companies under liquidity pressures. We understand these pressures and have compiled some tips for managing cash flow and mitigating any potential impact on your debt obligations.

In response to the World Health Organisation (WHO) declaring the spread of COVID-19 as a pandemic, the Cyprus Government announced a number of actions in order to support the country’s economy, including the following business related measures.

With the rising impact of COVID-19 being seen worldwide, all industries will face significant disruption to their supply chain, workforce and cashflow. By remaining agile and alert, business leaders can take steps to build resilience into their operations and mitigate the impact.

The spread of the Coronavirus is impacting businesses around the world. Entities need to carefully consider the accounting implications of this situation. This IFRS Alert considers the impact of the Coronavirus on 31 December 2019 year ends.