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Maria Damianou |
The Cypriot Parliament passed amendments to VAT legislation on July 11 2013. The amendments relate to reducing charges for failure to pay VAT on due dates specified by law. Specifically approved are the following:
(1) A taxable person who submits the VAT return and pays the amount of VAT due by December 10 2013 shall not be subject to the following:
Imposition of interest for delay in payment of VAT;
Imposition of 10% additional tax for failure to pay VAT;
Additional tax for tax amount certified by the VAT Commissioner as VAT tax due; or
Enforcement of any penalties if the failure to pay VAT is considered as criminal offense.
The above relate to periods ending on:
February 28 2013
March 31 2013
April 30 2013
May 31 2013
(2) A taxable person who submits the VAT return and pays the amount of VAT due by December 10 2013 will receive the following advantages:
The additional tax on non-timely payment of VAT is reduced from 10% to 5%; and
The additional tax for the tax amount certified by the VAT commissioner is reduced from 10% to 5%.
The above relate to periods ending on:
June 30 2013
July 31 2013
August 31 2013
September 30 2013
Note that the interest on late payment of VAT due for the periods set out in (2) remain valid as provided by law.
The changes adopted are intended to assist the existing situation in the financial sector in Cyprus by relieving the burden on taxpayers.
Maria Damianou (maria.damianou@eurofast.eu)
Eurofast Taxand, Cyprus
Tel: +357 22 699 222
Website: www.eurofast.eu
