Extract
Cyprus Tax Facts 2007 Part 2 of 2.
Value Added Tax
VAT is imposed on the provision of goods and services in Cyprus, as well as on the importation of goods into Cyprus and on the acquisition of goods from the European Union. Taxable persons charge VAT on their taxable supplies (output tax) and are charged with VAT on goods or services, which they receive (input tax). If output tax in a VAT period exceeds total input tax, a payment has to be made to the state. If input tax exceeds output tax a repayment is due from the state. With regard to intra-community acquisitions the trader does not pay VAT on receipt of the goods in Cyprus but instead he accounts for VAT using acquisition accounting. This involves a simple accounting entry in the books of the business whereby he self-charges VAT and at the same time claims it back if it related to taxable supplies thereby creating no cost to the business. VAT rates The following rates apply ...See the full content of this document
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