A GUIDE TO VAT REFUNDS FROM CYPRUS

Limassol, Cyprus

How to Get a VAT Refund from Cyprus

This page deals with refunds for cross-border transactions, it does not address VAT refunds where both vendor and customer are based in the same country. If you are travelling to or conducting business with companies in Cyprus, you may be eligible to claim back Cypriot VAT. We have compiled everything you need to know on this page about VAT refund eligibility, Cypriot VAT rates, deadlines for claiming the VAT back, the common services with refundable VAT and the processes to recover Cypriot VAT.

We maximise your foreign VAT refund and get it right the first time. There are constant changes in tax legislation, rules and regulations. The foreign VAT reclaim process is complicated, time-consuming and requires in-depth understanding of country specific procedures. Due to these demanding factors and a deadline-driven process, it is crucial to get filings right the first time.

Being the pioneer of VAT recovery, we know how to best manage the entire VAT recovery and related compliance process for your company. With a 30 year of track record, one of the largest networks of local experts, presence in over 40 countries, and long term relations with local authorities; you are really in safe hands. Let us manage and maximise your foreign VAT recovery.

Who can Claim VAT Refunds?

 

VAT Refunds for EU Companies

If you are a VAT registered company in an EU Member State and have conducted cross border transactions in another Member State where you are not VAT registered then you are eligible to recover the VAT according to Articles 170-171a VAT Directive and following the full rules laid out in Directive 2008/9/EC .

VAT Refunds for Non-EU Companies

If you are a VAT registered company established outside of the EU and you are charged VAT on business activities conducted in an EU Member State where you are not VAT registered, then you are entitled to deduct the VAT through means of a refund from the country where the VAT was paid according to the 13th Directive (69/59/EEC).

Click here for details regarding the country specific rules for VAT refund in each EU country.

https://ec.europa.eu/taxation_customs/business/vat/eu-country-specific-information-vat_en

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Cypriot VAT Rates: FPA

Standard rate    19%

Reduced rate     9%  – This applies to restaurants and hotels

Reduced rate     5%

With Cash Back, our VAT claims are managed successfully by local staff members whilst their international VAT experts recover our VAT from many different authorities. They always provide an efficient and totally transparent service.

Jolanta Stanislawska, Head of Accounting, Bayer

Deadlines for Claims Submission

For companies outside the European Union

December 30 (Year n + 1)

For companies in another EU member state

September 30 (Year n + 1)

VAT Refund Information

 

Retrospective Claims

A company can claim back VAT from the previous VAT year, no extended deadline is available.

 

Rule of Reciprocity

An EU claimant can claim VAT from any other EU Member State and recover the VAT according to the Member State of Refund’s local VAT legislation.

For non-EU claimants and/or refunds from non-EU Member States, some countries will only grant a VAT refund if the country where your company is registered offers similar VAT refund arrangements, the so-called rule of reciprocity.

Cyprus has a reciprocal agreement with Israel and Norway.

 

Services where VAT Refund is Available

The common services with refundable VAT are:

 Fuel for various means of transport

Expenditure on receptions, entertainment, hospitality, and other luxury services

Attending fairs, seminars, exhibitions, and related costs

Hosting fairs, seminars, exhibitions, and related costs

VAT Refund Process

 

VAT Refund Process for EU Companies

An electronic refund claim is submitted to the claimant’s national tax authority portal providing the following:

  1. Claimants details
  2. Summary of the refund request
  3. Details of each invoice related to the VAT refund application.
  4. Cyprus request scanned images of original invoices above 1000€ excluded VAT and above 250€ excluded VAT for fuel.

 

 

VAT Refund Process for Non-EU Companies

An application to the tax authority where the VAT was incurred shall be sent in original providing the following:

  1. Claimants details
  2. Summary of the refund request
  3. Details of each invoice related to the VAT refund application
  4. All original invoices related to the VAT refund must be included with the application

 

Contact Us

For additional information regarding the process and how we can assist,

please get in touch with us.

Our good placement all around the world will get you covered.

 

 

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