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On 17 January 2023 the European Parliament (“EP”) approved the European Commission’s (“EC”) proposal of 22 December 2021, for a Council Directive to introduce stricter substance requirements to combat tax benefits claimed by “shell entities”.

On 11 November 2022, Κ.Δ.Π. 423/2022 was published in the Official Gazette, amending 8th Schedule of the VAT law. The aforementioned Schedule regulates the extent to which the supply of immovable property is taxable.

On 13 July 2023, the Advocate Generalof the Court of Justice of the European Union issued an opinion on the Value Added Tax treatment of activities carried out by a member of the board of directors of a company (case C-288/22).

On 30 June 2022, Cyprus opened a new chapter with regards to transactions with controlled parties and Transfer Pricing. Read more.

The Council of Ministers of Cyprus approved, on 10 May, a bill with new tax incentives aimed at attracting foreign talent to Cyprus and encouraging international companies to relocate their headquarters to Cyprus.

On 26/4/2021 an amendment to the Cyprus VAT Law was published in the official Gazette which exempts from VAT educational services for vehicle technicians.

On 29/4/2021 an amendment to the Cyprus VAT Law was published in the official Gazette which precludes the imposition of penalties in specific cases

The European Commission has issued a press release on 12/4/2021 according to which it has proposed to exempt from Value Added Tax (VAT) goods and services made available by the European Commission, EU bodies and agencies to Member States and citizens during times of crisis.

Following the amendments of the Cyprus VAT Law that were announced in the Government Gazette on 20/08/2020, the Tax Department will impose penalties, as from 1st July 2021, in relation to the non-application of the reverse charge mechanism.

We would like to inform you that in accordance with the Decree issued on 12 March 2021, the following electronic submission deadlines are extended to 30 September 2021

The Cyprus Tax Department has issued Implementing Regulation No.11/2021 of 17 February 2021, providing clarifications in relation to the time of supply in cases of non-monetary consideration in the construction industry.

Following the enactment of N5(1)/2021 amending the Cyprus VAT Law which was announced on 9/1/2021, the Tax Department issued a notice providing clarifications in relation to the payment of VAT in instalments.

We would like to inform you that the Cyprus Tax Department announced on 03 February 2021, that the EU Directive regarding DAC6 is expected to be incorporated into the Cypriot legislation within the current month.

The Tax Department has issued a notice reminding that in accordance with Regulation ΚΔΠ 268/2020 the reduction from 9% to 5% of the VAT rate which applies to the aforementioned services is effective only for the period from 1/7/2020-10/1/2021.

We would like to inform you that in accordance with an announcement issued by the Cyprus Tax Department on 15 December 2020, the following filing deadlines are extended to 31 January 2021

A new VAT law amendment (Decree N.147(I)/2020) published in the Cyprus Gazette on 2/11/20 provides for an extension of the payment for the outstanding amounts arising from the VAT returns submitted for the periods ending 29 February, 31 March and 30 April of 2020.