Value added tax (VAT) can impact almost every transaction in the conduct of local and international business. It constitutes a key factor in managing the cashflows of a business and in many cases a real bottom-line cost.
The complexity of VAT legislation is of growing relevance to businesses as Governments are increasingly shifting towards indirect taxes as a means of revenue on a global level. Globally, while corporation tax rates have generally decreased, VAT rates have risen. Companies need to comply with thorny VAT rules when entering new markets, stretching out globally or joining international supply chains. Meanwhile, liabilities, errors and assessments can also attract interest and penalties. Hence, the effective management of VAT and other indirect taxes is essential. At Grant Thornton Cyprus, our experienced VAT specialists are available to assist companies and entrepreneurs of all industries and sizes in meeting their obligations. Relying on our finely tuned local knowledge and collaboration with international VAT teams from our global organisation, we can provide support for all national and international VAT issues, positively influencing your company's financial position in the long term and helping you to navigate complex and time-consuming regulations.
VAT Advisory services
- VAT planning strategies - for example VAT review of proposed business activities or intended application of operational models
- pre-execution VAT review of agreements – Review of draft agreements prior to finalization to identify and mitigate embedded VAT risks
- provision of professional opinion in relation to daily business with high level of practical and sector-oriented approach for national and cross-border issues with coordination of the colleagues in the concerned countries worldwide
- provision of advice on specific situations or issues including cash-flow optimization, intercompany supplies, business restructuring, holding companies, optimization/application of partial exemption rules, input VAT recovery and place of supply of goods/services
- inhouse workshops and training courses, client-designed for the typical business cases and qualifications of the participating employees
- conduct of internal VAT due diligence aimed at identifying VAT risks and proposing actions to address them
- impact assessment and advise in relation to changes in local or European VAT legislation;
- representation with local Tax Authorities including provision of support in VAT audits, preparation of appeals to VAT assessments and negotiation with the VAT Authorities on points of legal uncertainty
- preparation and submission of VAT rulings to the Tax Department on points of legal interpretation.
VAT Compliance service
- assistance in handling local VAT compliance obligations including the filing of VAT returns, Intrastat Reports and EC Sales Listings (VIES)
- facilitating payments of VAT liabilities to the VAT Authorities
- facilitating VAT registration/de-registration locally and in other jurisdictions, both EU and non-EU
- preparation and submission of VAT refund applications and other declarations/applications to the VAT Authorities
- registration and advice on the use of One Stop Shop (OSS) for electronically supplied services (EU and non-EU scheme) and Distance Selling regime for goods
- conduct reviews of VAT returns, supporting records and preparation of local and international VAT returns on your behalf
- assistance with partial exemption calculations and input VAT recovery.