# cyprus-vat-return

## Cyprus VAT Return Skill (VAT4 Form) v2.0

## Verified rates & thresholds (accountant-reviewed)

Reviewed against the cited tax authorities by **Christos Thoma** on 2026-06-12.
Items flagged for further clarification are tracked separately and excluded here.
This block is generated from verified `skill_facts` — edit the facts, not the prose.

### cyprus-vat-return

- **Cyprus VAT standard rate** — 19%  _(Income Tax Law (Law 118(I)/2002))_
- **Reduced rate — accommodation and restaurant/catering** — 9%  _(Fifth Schedule Part II)_
- **Reduced rate — food, pharmaceuticals, books, newspapers, water supply, medical devices** — 5% applies to specified goods/services including foodstuffs and pharmaceutical products and, subject to conditions, qualifying primary residences; books/newspapers/periodicals and several medical/disability/waste/cultural items moved to the 3% super-reduced rate.  _(https://taxsummaries.pwc.com/cyprus/corporate/other-taxes ; https://www.ey.com/en_gl/technical/tax-alerts/cyprus-introduces-3--vat-rate-and-adds-goods-to-0--vat-list)_
- **Reduced rate — specific social housing** — 3% super-reduced VAT rate applies to specified goods/services such as books/newspapers/periodicals, certain disability/orthopaedic products, private waste/sewage services and admission to first performances of qualifying cultural works. Qualifying primary residence relief is generally a 5% reduced-rate regime, not a 3% social housing rate.  _(https://taxsummaries.pwc.com/cyprus/corporate/other-taxes ; https://www.ey.com/en_gl/technical/tax-alerts/cyprus-introduces-3--vat-rate-and-adds-goods-to-0--vat-list)_
- **Zero rate — exports, intra-EU B2B supplies of goods, international transport** — 0%  _(Sixth Schedule)_
- **Reverse charge output VAT rate (EU and non-EU services/goods received)** — 19%  _(Sections 11, 11A)_
- **Utility — water supply VAT rate** — 5%  _(Fifth Schedule Part III)_
- **Utility — electricity VAT rate** — 19%  _(VAT Law Section 17)_
- **Utility — telecoms VAT rate** — 19%  _(VAT Law Section 17)_
- **Commercial rent VAT rate** — 19%  _(VAT Law Section 17)_
- **Legal, accounting and notary professional services VAT rate** — 19%  _(VAT Law Section 17)_
- **Domestic courier/parcel VAT rate** — 19%  _(VAT Law Section 17)_
- **Bus and taxi transport VAT rate** — 9% for certain local passenger transport services, including passenger transport by urban/intercity/rural taxis and buses; otherwise standard-rated supplies remain at 19%.  _(https://taxsummaries.pwc.com/cyprus/corporate/other-taxes)_
- **International flights VAT rate** — 0%  _(Sixth Schedule)_
- **Exempt supplies without input tax credit — financial services, insurance, healthcare, education, postal, gambling, residential rental** — Exempt without credit  _(Seventh Schedule)_
- **Residential rental VAT treatment** — Exempt  _(Seventh Schedule)_
- **Bank charges and fees VAT treatment** — Exempt (exclude)  _(Seventh Schedule)_
- **Insurance premiums VAT treatment** — Exempt (exclude)  _(Seventh Schedule)_
- **Standard postal service (Cyprus Post) VAT treatment** — Exempt — universal service  _(Seventh Schedule)_
- **Payment processor transaction fees (Stripe, PayPal) VAT treatment** — Exempt (exclude)  _(Seventh Schedule)_
- **VAT registration threshold — annual turnover below which entity is non-registered** — EUR 15,600  _(VAT Law N.95(I)/2000 (as amended))_
- **VAT return form** — VAT4  _(VAT Law N.95(I)/2000 (as amended))_
- **Filing portal** — https://taxisnet.mof.gov.cy (TAXISnet / TFA portal)
- **Standard filing frequency** — Quarterly  _(VAT Law N.95(I)/2000 (as amended))_
- **Optional filing frequency — large exporters** — Monthly  _(VAT Law N.95(I)/2000 (as amended))_
- **VAT4 submission deadline** — 10th of the second month after quarter end (e.g. 10 May for Q1)  _(VAT Law N.95(I)/2000 (as amended))_
- **Q1 (Jan–Mar) filing deadline — example** — 10 May  _(VAT Law N.95(I)/2000 (as amended))_
- **Currency** — EUR only
- **VAT number format** — CY + 8 digits + letter
- **Number of VAT4 boxes** — 11 boxes plus sub-boxes
- **Box 1 — VAT due on sales and other outputs (all rates combined)** — VAT due on sales and other outputs (all rates combined)
- **Box 2 — VAT due on acquisitions from EU + services from abroad (reverse charge output)** — VAT due on acquisitions from EU + services from abroad (reverse charge output)
- **Box 3 — Total output VAT formula** — Box 1 + Box 2
- **Box 4 — VAT reclaimed on purchases and inputs** — All deductible input VAT
- **Box 5 — Net VAT payable or refundable formula** — Box 3 minus Box 4
- **Box 6 — Total value of sales and outputs (excl. VAT)** — Total value of sales and outputs (excl. VAT)
- **Box 7 — Total value of purchases and inputs (excl. VAT)** — Total value of purchases and inputs (excl. VAT)
- **Box 8A — Value of intra-EU supplies of goods** — Value of intra-EU supplies of goods
- **Box 8B — Value of B2B services supplied to other EU states** — Value of B2B services supplied to other EU states
- **Box 9 — Value of zero-rated outputs (exports and other zero-rated not in 8A/8B)** — Value of zero-rated outputs (exports, other zero-rated not in 8A/8B)
- **Box 10 — Sales outside CY VAT scope with right of deduction** — Sales outside CY VAT scope with right of deduction
- **Box 11A — Value of goods acquired from EU** — Value of goods acquired from EU
- **Box 11B — Value of services received from EU (reverse charge)** — Value of services received from EU (reverse charge)
- **EU services received — legal basis** — Output VAT at 19% in Box 2; input in Box 4; value in Box 11B  _(Section 11A)_
- **EU goods received — legal basis** — Output in Box 2; input in Box 4; value in Box 11A  _(Section 11)_
- **Non-EU services received — legal basis** — Output Box 2; input Box 4  _(Section 11A)_
- **Domestic reverse charge — construction services** — Output and input both reported by recipient  _(Section 11B)_
- **Entertainment — input VAT recovery** — Blocked (0%)  _(VAT Law N.95(I)/2000 — general business-use principle)_
- **Personal use — input VAT recovery** — Blocked (0%)  _(VAT Law N.95(I)/2000 — general business-use principle)_
- **Motor vehicle fuel — input VAT recovery** — Proportional deduction based on business use (not hard-blocked); default 0%  _(VAT Law N.95(I)/2000)_
- **Default rate when VAT rate on a sale is unknown** — 19%
- **Default VAT status of a purchase when unknown** — Not deductible
- **Default counterparty country when unknown** — Domestic Cyprus
- **Default B2B vs B2C classification for unknown EU customer** — B2C, charge 19%
- **Default business-use proportion when unknown** — 0% recovery
- **Default SaaS billing entity when unknown** — Reverse charge from non-EU
- **Default blocked-input status when unknown** — Blocked
- **Default scope treatment when unknown** — In scope
- **HIGH flag — single transaction size** — EUR 3,000
- **HIGH flag — tax delta on a single default** — EUR 200
- **MEDIUM flag — counterparty concentration** — >40%
- **MEDIUM flag — conservative default count** — >4
- **LOW flag — absolute net VAT position** — EUR 5,000
- **Input VAT claim threshold requiring purchase invoice** — No general EUR 200 threshold for claiming input VAT. Deductible input VAT must be supported by a valid VAT invoice / import document; simplified invoicing under EU rules is generally for invoices not higher than EUR 100 or equivalent, subject to national rules.  _(https://taxation-customs.ec.europa.eu/taxation/vat/vat-businesses/invoicing_en)_
- **B2B service supplied to EU VAT-registered customer — place of supply** — Place of customer (customer's member state); 0% in Box 8B; verify VAT number  _(EU VAT Directive 2006/112/EC — Article 44)_
- **Intra-EU B2B goods — reporting box** — Box 8A; 0%  _(Sixth Schedule)_
- **Primary VAT legislation** — VAT Law N.95(I)/2000 (as amended)  _(VAT Law N.95(I)/2000)_
- **Partial exemption pro-rata provision** — Section 26  _(VAT Law N.95(I)/2000 Section 26)_
- **Reverse charge provisions** — Sections 11, 11A–11E  _(VAT Law N.95(I)/2000)_
- **Immovable property special VAT rules** — Eighth Schedule  _(VAT Law N.95(I)/2000 Eighth Schedule)_

## Section 1 — Quick reference

Read this whole section before classifying anything. The workflow runbook is in `vat-workflow-base` Section 1.

**Quick reference field table**

**Quick reference field table**

| Field | Value |
| --- | --- |
| Country | Cyprus (Republic of Cyprus) |
| Standard rate | 19% |
| Reduced rates | 9% (accommodation, restaurant/catering), 5% (food, pharmaceuticals, water, qualifying primary residences), 3% (specific social housing) |
| Zero rate | 0% (exports, intra-EU B2B supplies of goods, international transport) |
| Return form | VAT4 |
| Filing portal | https://taxisnet.mof.gov.cy (TAXISnet / TFA portal) |
| Authority | Cyprus Tax Department, Ministry of Finance |
| Currency | EUR only |
| Filing frequencies | Quarterly (standard); Monthly (option for large exporters) |
| Deadline | 10th of second month after quarter end (e.g. 10 May for Q1) |
| Companion skill (Tier 1, workflow) | **vat-workflow-base v0.1 or later — MUST be loaded** |
| Companion skill (Tier 2, EU directive) | **eu-vat-directive v0.1 or later — MUST be loaded** |
| Validated by | Deep research verification, April 2026 |
| Validation date | April 2026 |

**Key VAT4 boxes**

| Box | Meaning |
| --- | --- |
| 1 | VAT due on sales and other outputs (all rates combined) |
| 2 | VAT due on acquisitions from EU + services from abroad (reverse charge output) |
| 3 | Total output VAT (Box 1 + Box 2) |
| 4 | VAT reclaimed on purchases and inputs (all deductible input VAT) |
| 5 | Net VAT payable or refundable (Box 3 minus Box 4) |
| 6 | Total value of sales and outputs (excl. VAT) |
| 7 | Total value of purchases and inputs (excl. VAT) |
| 8A | Value of intra-EU supplies of goods |
| 8B | Value of B2B services supplied to other EU states |
| 9 | Value of zero-rated outputs (exports, other zero-rated not in 8A/8B) |
| 10 | Sales outside CY VAT scope with right of deduction |
| 11A | Value of goods acquired from EU |
| 11B | Value of services received from EU (reverse charge) |

**Conservative defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown rate on a sale | 19% |
| Unknown VAT status of a purchase | Not deductible |
| Unknown counterparty country | Domestic Cyprus |
| Unknown B2B vs B2C for EU customer | B2C, charge 19% |
| Unknown business-use proportion | 0% recovery |
| Unknown SaaS billing entity | Reverse charge from non-EU |
| Unknown blocked-input status | Blocked |
| Unknown whether in scope | In scope |

**Red flag thresholds**

| Threshold | Value |
| --- | --- |
| HIGH single-transaction size | EUR 3,000 |
| HIGH tax-delta on single default | EUR 200 |
| MEDIUM counterparty concentration | >40% |
| MEDIUM conservative-default count | >4 |
| LOW absolute net VAT position | EUR 5,000 |

## Section 2 — Required inputs and refusal catalogue

### Required inputs

**Minimum viable** — bank statement for the quarter. Acceptable from: Bank of Cyprus, Hellenic Bank, RCB Bank, Eurobank Cyprus, Astrobank, Revolut Business, Wise Business.

**Recommended** — sales invoices (intra-EU B2B, exports), purchase invoices for input VAT claims (valid VAT invoice required for all deductible input VAT), CY VAT number (CY + 8 digits + letter).

**Ideal** — complete invoice register, prior VAT4, VIES listings, credit brought forward reconciliation.

### Cyprus-specific refusal catalogue

- **R-CY-1 — Non-registered entity** — Trigger: not registered, turnover below EUR 15,600. Message: "Non-registered entities do not file VAT4 returns."  _(R-CY-1)_
- **R-CY-2 — Partial exemption** — Trigger: mixed taxable/exempt supplies. Message: "Mixed supplies require pro-rata input VAT apportionment under Section 26. Use a licensed accountant."  _(R-CY-2)_
- **R-CY-3 — Domestic reverse charge (construction Section 11B)** — Trigger: construction services received/supplied. Message: "Construction domestic reverse charge requires specialist classification."  _(R-CY-3)_
- **R-CY-4 — Ship management / international services** — Trigger: shipping or maritime services. Message: "Ship management and tonnage tax structures require specialist advice."  _(R-CY-4)_
- **R-CY-5 — Special schemes (TOMS, margin)** — Message: "Tour operator margin scheme and second-hand goods margin scheme require specialist computation."  _(R-CY-5)_
- **R-CY-6 — Immovable property classification** — Trigger: property transactions with option to tax. Message: "Immovable property VAT classification under the Eighth Schedule requires specialist review."  _(R-CY-6)_

## Section 3 — Supplier pattern library

Match by case-insensitive substring. Most specific match wins.

### 3.1 Cypriot banks (fees exempt — exclude)

**Cypriot banks table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| BANK OF CYPRUS, BOC | EXCLUDE for bank charges/fees | Exempt financial service |
| HELLENIC BANK | EXCLUDE for bank charges/fees | Same |
| RCB BANK | EXCLUDE for bank charges/fees | Same |
| EUROBANK CYPRUS | EXCLUDE for bank charges/fees | Same |
| ASTROBANK | EXCLUDE for bank charges/fees | Same |
| REVOLUT, WISE, N26 (fee lines) | EXCLUDE | Check for taxable subscription invoices |
| TOKOI, INTEREST | EXCLUDE | Interest, out of scope |
| DANEIO, LOAN | EXCLUDE | Loan principal, out of scope |

### 3.2 Cypriot government and statutory bodies (exclude)

**Government and statutory bodies table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| TAX DEPARTMENT, TMHMA FOROLOGIAS | EXCLUDE | Tax payment |
| SOCIAL INSURANCE, KOINONIKON ASFALISION | EXCLUDE | Social security |
| REGISTRAR OF COMPANIES | EXCLUDE | Registration fees |
| CYPRUS STOCK EXCHANGE | EXCLUDE | Regulatory fee |

### 3.3 Cypriot utilities

**Cypriot utilities table**

| Pattern | Treatment | Box | Notes |
| --- | --- | --- | --- |
| EAC, ELECTRICITY AUTHORITY CYPRUS | Domestic 19% | 4 (input) | Electricity |
| WATER BOARD, SYMVOULIO YDATOPROMITHEIAS | Domestic 5% | 4 (input) | Water at 5% |
| CYTA, CYTANET | Domestic 19% | 4 (input) | Telecoms |
| EPIC, PRIMETEL | Domestic 19% | 4 (input) | Telecoms |

### 3.4 Insurance (exempt — exclude)

**Insurance table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| GENERAL INSURANCE CYPRUS | EXCLUDE | Exempt |
| CNP CYPRIALIFE | EXCLUDE | Same |
| ALLIANZ CYPRUS | EXCLUDE | Same |
| ATLANTIC INSURANCE | EXCLUDE | Same |
| ASFALEIA, INSURANCE | EXCLUDE | All exempt |

### 3.5 Post and logistics

**Post and logistics table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| CYPRUS POST, KYPRIAKO TACHYDROMEIO | EXCLUDE for standard post | Universal service, exempt |
| CYPRUS POST (parcel/courier) | Domestic 19% | Non-universal |
| AKIS EXPRESS, ACS COURIER CY | Domestic 19% | Courier |
| DHL INTERNATIONAL | EU reverse charge | Check invoice entity |

### 3.6 Transport

**Transport table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| TRAVEL EXPRESS, INTERCITY BUSES | Domestic 19% | Bus |
| TAXI | Domestic 19% | Local |
| RYANAIR, WIZZ AIR (international) | EXCLUDE / 0% | International flight |

### 3.7 Food retail (blocked unless hospitality)

**Food retail table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| ALPHAMEGA, PAPANTONIOU, LIDL CY, CARREFOUR CY | Default BLOCK | Personal provisioning |
| RESTAURANT, ESTIATORIO, TAVERNA | Default BLOCK | Entertainment |

### 3.8 SaaS — EU suppliers (reverse charge, Box 2 output + Box 4 input)

**SaaS EU suppliers table**

| Pattern | Billing entity | Notes |
| --- | --- | --- |
| GOOGLE (Ads, Workspace, Cloud) | Google Ireland Ltd (IE) | EU reverse charge |
| MICROSOFT (365, Azure) | Microsoft Ireland Operations Ltd (IE) | Reverse charge |
| ADOBE | Adobe Systems Software Ireland Ltd (IE) | Reverse charge |
| META, FACEBOOK ADS | Meta Platforms Ireland Ltd (IE) | Reverse charge |
| LINKEDIN | LinkedIn Ireland Unlimited (IE) | Reverse charge |
| SPOTIFY | Spotify AB (SE) | EU reverse charge |
| DROPBOX | Dropbox International Unlimited (IE) | Reverse charge |
| SLACK | Slack Technologies Ireland Ltd (IE) | Reverse charge |
| ATLASSIAN | Atlassian Network Services BV (NL) | EU reverse charge |
| ZOOM | Zoom Video Communications Ireland Ltd (IE) | Reverse charge |

### 3.9 SaaS — non-EU suppliers (reverse charge, Box 2 output + Box 4 input)

**SaaS non-EU suppliers table**

| Pattern | Billing entity | Notes |
| --- | --- | --- |
| AWS EMEA SARL | AWS EMEA SARL (LU) | LU = EU reverse charge |
| NOTION | Notion Labs Inc (US) | Non-EU reverse charge |
| ANTHROPIC, CLAUDE | Anthropic PBC (US) | Non-EU reverse charge |
| OPENAI, CHATGPT | OpenAI Inc (US) | Non-EU reverse charge |
| GITHUB | GitHub Inc (US) | Check if billed by IE |
| FIGMA | Figma Inc (US) | Non-EU reverse charge |
| CANVA | Canva Pty Ltd (AU) | Non-EU reverse charge |

### 3.10 Payment processors

**Payment processors table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| STRIPE (transaction fees) | EXCLUDE (exempt) | Financial service |
| PAYPAL (transaction fees) | EXCLUDE (exempt) | Same |

### 3.11 Professional services (Cyprus)

**Professional services table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| DIKIGOROS, LAWYER, ADVOCATE | Domestic 19% | Legal |
| LOGISTIS, ACCOUNTANT, AUDITOR | Domestic 19% | Accounting |
| SYMVOLAIOGRAFOS, NOTARY | Domestic 19% | Notary |

### 3.12 Payroll and social security (exclude)

**Payroll and social security table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| KOINONIKES ASFALISIS, SOCIAL INSURANCE | EXCLUDE | Social contributions |
| SALARY, MISTHOS | EXCLUDE | Wages |

### 3.13 Property and rent

**Property and rent table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| ENOIKIO, RENT (commercial with VAT) | Domestic 19% | Commercial lease |
| ENOIKIO, RENT (residential) | EXCLUDE | Exempt |

### 3.14 Internal transfers and exclusions

**Internal transfers and exclusions table**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| OWN TRANSFER, INTERNAL | EXCLUDE | Internal movement |
| MERISMA, DIVIDEND | EXCLUDE | Out of scope |
| LOAN REPAYMENT | EXCLUDE | Loan principal |
| ATM, CASH WITHDRAWAL | Ask | Default exclude |

## Section 4 — Worked examples

### Example 1 — Non-EU SaaS reverse charge (Notion)

**Input line:**
`03.04.2026 ; NOTION LABS INC ; DEBIT ; Monthly subscription ; USD 16.00 ; EUR 14.68`

**Reasoning:**
US entity. Self-assess output VAT at 19% in Box 2. Claim input in Box 4. Net zero. Box 11B value not applicable (non-EU service — use Box 7 only).

**Output table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box (input) | Box (output) | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03.04.2026 | NOTION LABS INC | -14.68 | -14.68 | 2.79 | 19% | 4 | 2 | N | — |

### Example 2 — EU service reverse charge (Google Ads)

**Input line:**
`10.04.2026 ; GOOGLE IRELAND LIMITED ; DEBIT ; Google Ads ; -850.00 ; EUR`

**Reasoning:**
IE entity. EU reverse charge. Output in Box 2, input in Box 4. Value in Box 11B.

**Output table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box (input) | Box (output) | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 10.04.2026 | GOOGLE IRELAND LIMITED | -850.00 | -850.00 | 161.50 | 19% | 4 | 2 | N | — |

### Example 3 — Entertainment

**Input line:**
`15.04.2026 ; COLUMBIA STEAK HOUSE LIMASSOL ; DEBIT ; Business dinner ; -220.00 ; EUR`

**Reasoning:**
Restaurant. Entertainment input VAT is blocked in Cyprus under the general "not for business use" principle. Default: block.

**Output table**  _("Entertainment: blocked")_

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Question? | Excluded? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 15.04.2026 | COLUMBIA STEAK HOUSE | -220.00 | -220.00 | 0 | — | — | Y | Q1 | "Entertainment: blocked" |

### Example 4 — Capital goods

**Input line:**
`18.04.2026 ; LOGITECH CYPRUS ; DEBIT ; Laptop ; -1,595.00 ; EUR`

**Reasoning:**
Business equipment. Input VAT deductible at 19%. No specific capital goods threshold in Cyprus VAT4 (unlike Malta). Goes to Box 4.

**Output table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 18.04.2026 | LOGITECH CYPRUS | -1,595.00 | -1,340.34 | -254.66 | 19% | 4 | N | — |

### Example 5 — EU B2B service sale

**Input line:**
`22.04.2026 ; STUDIO KREBS GMBH ; CREDIT ; IT consultancy ; +3,500.00 ; EUR`

**Reasoning:**
B2B service to Germany. Place of supply = Germany. 0% in Box 8B. Verify USt-IdNr.

**Output table**  _(Q2 (HIGH) "Verify USt-IdNr")_

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 22.04.2026 | STUDIO KREBS GMBH | +3,500.00 | +3,500.00 | 0 | 0% | 8B | Y | Q2 (HIGH) "Verify USt-IdNr" |

### Example 6 — Motor vehicle

**Input line:**
`28.04.2026 ; PETROLINA STATIONS ; DEBIT ; Fuel ; -60.00 ; EUR`

**Reasoning:**
Fuel. In Cyprus, input VAT on motor vehicle fuel is deductible if vehicle is used for business. Unlike Malta's hard block, Cyprus allows deduction proportional to business use. Default: 0% (business use unknown).

**Output table**

| Date | Counterparty | Gross | Net | VAT | Rate | Box | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 28.04.2026 | PETROLINA STATIONS | -60.00 | -60.00 | 0 | — | — | Y | Q3 "Vehicle business-use %?" |

## Section 5 — Tier 1 classification rules (compressed)

### 5.1 Standard rate 19% (VAT Law Section 17)

- **Default rate treatment** — Default rate. Output: Box 1. Input: Box 4.  _(VAT Law Section 17)_

### 5.2 Reduced rate 9% (Fifth Schedule Part II)

- **Reduced 9% scope** — Accommodation, restaurant/catering services.  _(Fifth Schedule Part II)_

### 5.3 Reduced rate 5% (Fifth Schedule Part III)

- **Reduced 5% scope** — Food, pharmaceuticals, water supply, qualifying primary residences, medical devices.  _(Fifth Schedule Part III)_

### 5.4 Reduced rate 3%

- **Reduced 3% scope** — Specific social housing.

### 5.5 Zero rate (Sixth Schedule)

- **Zero rate scope** — Exports, intra-EU B2B goods (Box 8A), intra-EU B2B services (Box 8B), international transport.  _(Sixth Schedule)_

### 5.6 Exempt without credit (Seventh Schedule)

- **Exempt scope** — Financial services, insurance, healthcare, education, postal, gambling, residential rental.  _(Seventh Schedule)_

### 5.7 Reverse charge — EU services received (Section 11A)

- **Rule** — Output VAT at 19% in Box 2, input in Box 4. Value in Box 11B.  _(Section 11A)_

### 5.8 Reverse charge — EU goods received (Section 11)

- **Rule** — Output in Box 2, input in Box 4. Value in Box 11A.  _(Section 11)_

### 5.9 Reverse charge — non-EU services (Section 11A)

- **Rule** — Same mechanism: output Box 2, input Box 4.  _(Section 11A)_

### 5.10 Domestic reverse charge — construction (Section 11B)

- **Rule** — Output and input both reported by recipient. Flag for reviewer — R-CY-3.  _(Section 11B)_

### 5.11 Blocked input VAT

- **Blocked input categories** — - Entertainment: blocked (no specific statutory list like Malta's 10th Schedule; follows general business-use principle) - Personal use: blocked - Motor vehicles: proportional deduction based on business use (not hard-blocked like Malta)

### 5.12 Cyprus consolidated Box structure

- **Box structure note** — Unlike Malta's ~45-box periodic VAT return, Cyprus VAT4 has only 11 boxes plus sub-boxes. All rates are aggregated into Box 1 (output) and Box 4 (input).

## Section 6 — Tier 2 catalogue (compressed)

### 6.1 Fuel and vehicle costs

- **Default and question** — Default: 0%. Question: "Vehicle type and business-use percentage?"

### 6.2 Entertainment

- **Default and question** — Default: block. Question: "Business purpose? (Note: blocked regardless in most cases.)"

### 6.3 Ambiguous SaaS

- **Default and question** — Default: non-EU reverse charge. Question: "Check invoice entity."

### 6.4 Owner transfers

- **Default and question** — Default: exclude. Question: "Customer payment, own money, or loan?"

### 6.5 Individual incoming

- **Default and question** — Default: domestic B2C at 19%. Question: "Sale? Country?"

### 6.6 Foreign incoming

- **Default and question** — Default: 19%. Question: "B2B? Country? VAT number?"

### 6.7 Large purchases

- **Default and question** — Default: deductible; flag if capital. Question: "Useful life > 1 year?"

### 6.8 Mixed-use telecom/home office

- **Default and question** — Default: 0%. Question: "Business line or mixed?"

### 6.9 Outgoing to individuals

- **Default and question** — Default: exclude. Question: "Contractor, wages, or personal?"

### 6.10 Cash withdrawals

- **Default and question** — Default: exclude. Question: "Cash purpose?"

### 6.11 Rent

- **Default and question** — Default: exempt (residential). Question: "Commercial or residential?"

## Section 7 — Excel working paper template (Cyprus-specific)

Per `vat-workflow-base` Section 3. Column H accepts CY VAT4 box codes (1-11B). Sheet "Box Summary" maps directly to the VAT4 form. Bottom-line: Box 5 (net payable/refundable = Box 3 minus Box 4).

## Section 8 — Cyprus bank statement reading guide

**CSV conventions.** Bank of Cyprus and Hellenic Bank typically use comma delimiters, DD/MM/YYYY dates.

**Greek language variants.** Enoikio (rent), misthos (salary), tokoi (interest), metafora (transfer). Treat as English equivalent.

**Internal transfers.** "Own transfer", "esoteriki metafora". Exclude.

**IBAN prefix.** CY = Cyprus. IE, DE, NL = EU. US, GB = non-EU.

## Section 9 — Onboarding fallback

### 9.1 Entity type

- **Inference and fallback** — Inference: Ltd = company; sole trader. Fallback: "Company or self-employed?"

### 9.2 VAT registration

- **Fallback** — Fallback: "Are you VAT-registered?"

### 9.3 VAT number

- **Fallback** — Fallback: "CY VAT number? (CY + 8 digits + letter)"

### 9.4 Filing period

- **Inference and fallback** — Inference: quarterly by default. Fallback: "Which quarter?"

### 9.5 Industry

- **Fallback** — Fallback: "What does the business do?"

### 9.6 Exempt supplies

- **Fallback** — Fallback: "Any exempt supplies?" If yes: R-CY-2.

### 9.7 Credit brought forward

- **Fallback** — Fallback: "Excess VAT credit from prior quarter?"

### 9.8 Cross-border customers

- **Fallback** — Fallback: "Customers outside Cyprus?"

## Section 10 — Reference material

### Sources

1. VAT Law N.95(I)/2000 (as amended)
2. Fifth-Ninth Schedules (rates, exemptions, special schemes)
3. Sections 11, 11A-11E (reverse charge provisions)
4. EU VAT Directive 2006/112/EC — via companion skill
5. VIES — https://ec.europa.eu/taxation_customs/vies/

### Known gaps

1. Ship management/maritime sector not covered.
2. Construction domestic reverse charge (Section 11B) flagged as refusal.
3. Immovable property special rules not detailed.

### Change log

- **v2.0 (April 2026):** Full rewrite to Malta v2.0 structure. Cypriot banks (Bank of Cyprus, Hellenic Bank, RCB).
- **v1.0 (April 2026):** Initial skill.

## End of Cyprus VAT Return Skill v2.0

This skill is incomplete without BOTH companion files: `vat-workflow-base` v0.1+ AND `eu-vat-directive` v0.1+.

## Disclaimer

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The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com).