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Maria Damianou |
Effective from January 13 2014, the standard and reduced VAT rates in Cyprus increased from 18% to 19% and from 8% to 9% respectively. It was mandatory that all taxable persons subject to the aforementioned changes perform a physical inventory count to include both quantities and valuation upon the close of business on January 12. The final inventory report is to be maintained for a period of six years. In the case where a continuous electronic inventory system is used, a physical inventory count was not mandatory.
Credit notes which will be issued after January 13 2014 and relate to invoices which were already raised before that date shall apply the VAT rate which was applicable at the date of supply of goods or services.
Furthermore, agreements which were executed before January 13 2014 and continue to be in force after the increase of the standard rates, only those goods and services supplied after the effective date will be subject to the increased standard VAT rates. Any payments received after the increase of the standard VAT rates and relate to services or goods supplied before the effective date, shall apply the VAT rate which was applicable at the date of supply of goods or services.
Finally, it is important to note that any goods or services which are subject to the reduced VAT rates of 5% and 0% respectively will remain unaffected.
Maria Damianou (maria.damianou@eurofast.eu)
Eurofast Taxand, Cyprus
Tel: +357 22 699 222
Website: www.eurofast.eu
