Cyprus VAT return: classifying a quarter and filling in the return

This Guide prepares and reviews the periodic Cyprus VAT return (Δήλωση Φ.Π.Α.) for a business on the normal VAT scheme: which rate applies, which box each transaction goes in, who must register, when the return is due, and how to correct it. Figures are for tax year 2026. Every figure comes from a Cyprus Tax Department page or document, linked in the table that holds it. Most of those pages are in Greek only, so the Note column quotes the Greek text. Use it with the vat-workflow-base Guide (workflow) and the eu-vat-directive Guide (EU rules).

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

Field	Value
Country	Cyprus (Republic of Cyprus)
Authority	Tax Department (Τμήμα Φορολογίας), Ministry of Finance
Law	VAT Law N.95(I)/2000 as amended, and the VAT (General) Regulations Κ.Δ.Π. 314/2001
Return	The VAT return (Δήλωση Φ.Π.Α.), 13 boxes numbered 1 to 11B. Earlier versions of this Guide called it "VAT4"; no Tax Department page read for this rewrite uses that name
Filing	Electronic only, through Tax For All (TFA)
Period	Usually quarterly, set at registration by the business's NACE code; the Commissioner may set monthly or annual periods (Section 2)
Deadline	Return and payment by the 10th day after the end of the month that follows the end of the period (Section 2)
Currency	EUR only
Companion Guides	vat-workflow-base and eu-vat-directive, both must be loaded

2026 VAT rates. The Tax Department rates page lists the goods and services in each reduced band. Anything not listed on the rates page or in the Sixth Schedule table below takes the standard rate.

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/syntelestes-f-p-a/
Standard rate: every taxable supply of goods or services and every import of goods, except those listed in the rows below	19%	"Κανονικός συντελεστής (19%) Επιβάλλεται σε κάθε φορολογητέα παράδοση αγαθών ή παροχή υπηρεσιών ή εισαγωγή αγαθών πλην των πιο κάτω"
Reduced rate: passenger transport by urban, intercity and rural taxis, and by tourist and intercity buses; restaurant and catering services; accommodation in hotels, tourist lodgings and similar; supplies by old people's homes (other than exempt ones)	9%	"Μειωμένος συντελεστής (9%) Μεταφορά επιβατών με αστικά, υπεραστικά και αγροτικά ταξί καθώς και τουριστικά και υπεραστικά λεωφορεία"
Reduced rate: among others, food and drinks (but NOT alcoholic drinks, beer, wine or soft drinks, and not the items in the 0% row), water, bottled gas, medicines and vaccines, contraceptives, medical equipment for people with disabilities, children's car seats, electricity on tariff 08, funeral services, authors' and composers' services, transport by urban and rural buses, camping pitches, admission to shows, cinemas, museums, zoos and sports events, hairdressing, renovation of private homes under conditions, school canteens, and the purchase or construction of a main and permanent residence after the Commissioner's approval	5%	"Μειωμένος συντελεστής (5%) Φέρετρα"; "Τρόφιμα και ποτά (εκτός τον οινοπνευματωδη, μπύρα, καρασί και αναψυκτικά) εκτος αυτά που βρίσκονται στον 0%"
Super-reduced rate: books, newspapers and magazines (including electronic), talking books for people with disabilities, lifting devices and wheelchairs for people with disabilities, orthopaedic and hearing devices, street cleaning, refuse collection and waste treatment other than by local authorities, sewage disposal and tank emptying, admission to the first performance only of theatre, music and dance works	3%	"Μειωμένος συντελεστής (3%) Βιβλία, εφημερίδες, περιοδικά και σε ηλεκτρονική μορφή"
Zero rate: export of goods; supply, repair and hire of sea-going ships and airline aircraft; services for the direct needs of sea-going ships	0%	"Μηδενικός συντελεστής (0%) Εξαγωγή αγαθών"
Last day of the temporary zero rate on basic goods: baby milk, children's and adult nappies, meat, fish, cuttlefish, squid, octopus, and certain vegetables and fruit	30/9/2026	"συγκεκριμένα λαχανικά και φρούτα μέχρι και 30/9/2026"

The temporary zero rate on basic goods applied "up to and including" 30 September 2026. The rates page, read on 2 October 2026, shows no extension. For supplies of those goods made from 1 October 2026, use the rate the page lists for the item (food and drinks are in the 5% row); an item the page does not list in any reduced row takes the standard rate. A quarter that straddles 30 September 2026 (for example August to October) needs the sales of these goods split by date.

The rates page does not list every zero-rated item. The Sixth Schedule of the VAT Law also zero-rates international passenger transport, to the extent the transport takes place in Cyprus.

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/01/Consolidated-VAT-Law-%CE%9A%CE%94%CE%A0-221_2026.pdf
Passenger transport from Cyprus to abroad or the reverse, to the extent carried out inside Cyprus (Sixth Schedule paragraph 5(ε), wording in force from 20 August 2020)	0%	"ΠΑΡΑΔΟΣΕΙΣ ΑΓΑΘΩΝ ΚΑΙ ΠΑΡΟΧΕΣ ΥΠΗΡΕΣΙΩΝ ΠΟΥ ΥΠΟΚΕΙΝΤΑΙ ΣΤΟ ΜΗΔΕΝΙΚΟ ΣΥΝΤΕΛΕΣΤΗ"; "(ε) Μεταφορά επιβατών ... εξωτερικό ή αντίστροφα, στην έκταση που η μεταφορά διενεργείται στο εσωτερικό της Δημοκρατίας"

The 5% rate on a main residence is a separate scheme with its own approval, limits and cliff (Section 5.3).

Key return boxes. From the Tax Department's guide to completing the VAT return, dated 31/08/2020 (file name 06082024). It predates the one-stop shop (OSS); where it says MOSS, read the OSS the rights page lists, unconfirmed on any page read.

Box	Meaning
1	VAT due on outputs: sales, plus VAT you self-assess on services received from abroad and on domestic reverse charge purchases
2	VAT on acquisitions of GOODS (and linked services) from other EU member states
3	Total VAT due (Box 1 + Box 2)
4	Input VAT deductible this period on purchases and other inputs, including acquisitions from other EU member states
5	VAT payable or repayable (Box 3 minus Box 4)
6	Total value of outputs, without VAT, INCLUDING the amounts in Boxes 8A, 8B, 9, 10 and 11B
7	Total value of inputs, without VAT, INCLUDING the amounts in Boxes 11A and 11B
8A	Value of supplies of goods (and linked services) to other EU member states
8B	Value of services supplied to taxable persons in other EU member states where the customer accounts for the VAT
9	Value of zero-rated outputs other than those in 8A and 8B (exports included)
10	Value of out-of-scope sales with the right to deduct input VAT (other than 8B), including triangular sales and sales through the one-stop shop (the 2020 guide says "MOSS")
11A	Value of acquisitions of goods (and linked services) from other EU member states
11B	Value of services received from taxable persons in other EU member states

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	19% (standard rate)
Unknown VAT status of a purchase	Not deductible
Unknown counterparty country	Domestic Cyprus
Unknown B2B vs B2C for an EU customer	B2C, charge Cyprus VAT at the standard rate
Unknown business-use proportion	No recovery
Unknown SaaS billing entity	Reverse charge as a service from outside the EU
Unknown blocked-input status	Blocked
Unknown whether in scope	In scope

Red flags for the reviewer. Flag for review: a single transaction that is large for the business; any default whose effect on the VAT due is material; one counterparty dominating the quarter's sales or purchases; more than a handful of conservative defaults in one quarter; and a large net payable or repayable position. (The earlier numeric trigger levels were internal review settings, not law; set them with the reviewer.)

Section 2: Registration, periods, deadlines and penalties

Registration and filing obligations. From the Tax Department page on the obligation and right to register.

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/eggrafi-akyrosi-f-p-a/eggrafes-mitrooy-f-p-a/ypochreosi-dikaioma-eggrafis-sto-mitroo-f-p-a/
Registration threshold for a person established in Cyprus: taxable supplies (standard, reduced and zero rated) in the year ending at the end of any month have exceeded this, OR there are reasonable grounds to believe supplies in the next 30 days will exceed it. Capital assets of the business are not counted	EUR 15,600	"η αξία των φορολογητέων συναλλαγών του κατά την περίοδο ενός έτους που τελειώνει σε αυτό το χρονικό σημείο έχει υπερβεί τις €15.600"
Penalty for late notification of the obligation to register, for every month the failure lasts	EUR 85	"Καθυστέρηση γνωστοποίησης της υποχρέωσης για εγγραφή, συνεπάγεται χρηματική επιβάρυνση €85 για κάθε μήνα που διαρκεί η παράλειψη"
Registration threshold for acquisitions of goods from other EU member states, counted from 1 January of the calendar year (or expected within the next 30 days). Not the general threshold	EUR 10,251.61	"έχουν υπερβεί το όριο των €10.251,61"

• Past-12-months test: the business must notify within thirty days of the end of the month in which the threshold was exceeded. Registration takes effect from the end of the following month, or an earlier agreed date.
• Next-30-days test: the business must notify before the end of that thirty-day period, and registration takes effect from the start of it.
• The obligation exists whether or not the business applied. The Commissioner may register it back to the date it became liable, and it owes the VAT on its supplies from that date.
• No threshold: a person who supplies services to taxable persons in another EU member state, where the customer pays the VAT there, must register from the first such supply, whatever its value, and file the VIES recapitulative statement.
• No threshold: a business NOT established in Cyprus that makes taxable supplies in Cyprus (where the reverse charge does not apply) must register as soon as it intends to make them.
• Distance sales: the page sends distance sellers to Information Leaflet 3A. No allowed page read for this rewrite prints the EU distance-sales threshold, so this Guide does not state one. Refer.
• Voluntary registration is open to a business below the thresholds and to an intending trader.

Return periods. From the Tax Department page on submitting VAT returns. VAT returns "usually cover quarterly tax periods" ("Οι Δηλώσεις ΦΠΑ αφορούν συνήθως τριμηνιαίες φορολογικές περιόδους"), set at registration from the business's NACE activity code. Under conditions the Commissioner may set monthly or annual returns. The quarters are not always calendar quarters: the official calendar shows quarters such as June to August. Source: https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/

Deadlines. The return is due, and the VAT must be paid, by the 10th day after the end of the month that follows the end of the tax period (regulation 17 of Κ.Δ.Π. 314/2001). For a quarter ending 31 March, that is 10 May. The VIES recapitulative statement is due by the 15th day after the end of each month in which the business supplied goods or services to a person registered in another member state, and also for months with no such supplies. A corrective VIES statement is due within one month of the end of the month it relates to. Source: https://www.gov.cy/mof-tax/documents/dikaiomata-kai-ypochreoseis/

Calendar example. The official deadline calendar prints "2026-10-10 Προθεσμία Υποβολής Δήλωσης και Πληρωμής Φ.Π.Α. για την τριμηνία Ιουνίου" for the June to August 2026 quarter (return and payment due 10 October 2026), and states that when the deadline falls on a weekend or public holiday it moves to the next working day ("Όταν η ημερομηνία λήξης συμπίπτει με Σαββατοκύριακο ή αργία, η προθεσμία είναι η επόμενη εργάσιμη ημέρα"). Source: https://www.gov.cy/mof-tax/prothesmies/

Penalties and corrections. From the VAT return FAQ and the FAQ on correcting errors.

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/sychnes-erotiseis-dilosis-f-p-a/
Fixed charge for failing to submit a required VAT return	EUR 100	"χρηματική επιβάρυνση ύψους 100€, επιπρόσθετος φόρος ίσο προς το 10% του οφειλόμενου φόρου καθώς και τόκοι υπερημερίας"
Additional tax on the tax due, on top of the fixed charge and default interest	10%	"επιπρόσθετος φόρος ίσο προς το 10% του οφειλόμενου φόρου"

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/sychnes-erotiseis-se-schesi-me-tis-diorthoseis-lathon/
Errors in earlier returns may be corrected in the current period's VAT account ONLY if the net total of all errors found does not exceed this AND the error relates to a period less than three years old. Otherwise the business must send a written request to the Tax Department through TFA	EUR 1,708.60	"δεν υπερβαίνει τα €1708,60, μπορείτε να προβείτε σε καταχώριση του εν λόγω ποσού στο ανάλογο μερίδιο του Λογαριασμού Φ.Π.Α. της τρέχουσας φορολογικής περιόδου"

• Before the deadline, the business can amend its own return (boxes 1 to 11B) in TFA.
• Value boxes 6 to 11B of a return whose deadline is after 27/3/2023 can be amended in TFA by the business itself. Earlier returns need a written request.
• The correction in the current return follows regulation 24 of Κ.Δ.Π. 314/2001. The net total is worked out by setting the under-declared output VAT and over-claimed input VAT against the over-declared output VAT and under-claimed input VAT.

Deregistration and invoicing. From the Tax Department page on business rights and obligations.

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/dikaiomata-kai-ypochreoseis/
A registered person may be deregistered if it satisfies the Commissioner that its taxable supplies in the coming year will not exceed this	EUR 13,668.81	"δεν θα υπερβεί τις €13.668,81 μπορεί να διαγραφεί από το Μητρώο Φ.Π.Α."
A retailer must issue a VAT invoice if the customer is a taxable person, asks for one, and the consideration exceeds this	EUR 85	"αν ο πελάτης είναι υποκείμενο στο φόρο πρόσωπο και το ζητήσει και αν η αντιπαροχή υπερβαίνει τις €85"
Administrative charge for failing to issue a legal receipt to consumers: up to this share of the transaction value	20%	"διοικητικής χρηματικής επιβάρυνσης ίσης με ποσοστό έως και 20% της αξίας της συναλλαγής"

• A business must notify the end of its taxable activity within 60 days.
• The same page lists the special schemes a business may join where conditions are met, including the special scheme for small businesses (SME-SS) under Law 104(I)/2025, the one-stop shop (OSS / IOSS), the cash accounting scheme (article 42Ε), the margin schemes, the farmers' scheme and the urban taxi scheme. All are outside this Guide (refusal catalogue).

Section 3: Required inputs and refusal catalogue

Required inputs

Minimum viable: bank statement for the period. 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, the CY VAT number. To claim input VAT in Box 4 the business must hold a tax invoice dated in the period (Section 5.11).

Ideal: complete invoice register, prior VAT return, VIES statements, credit brought forward reconciliation.

Cyprus-specific refusal catalogue

• R-CY-1: Non-registered entity. Trigger: not registered and not required to register (Section 2). Message: "A person that is not registered and not required to register does not file a VAT return."
• R-CY-2: Partial exemption. Trigger: mixed taxable and exempt supplies. Message: "Input VAT must be apportioned under regulations 64-65Γ of Κ.Δ.Π. 314/2001. Use a licensed accountant."
• R-CY-3: Domestic reverse charge. Trigger: purchases or sales under articles 11A, 11B, 11Γ or 11Δ (for example construction). Message: "Domestic reverse charge needs specialist classification."
• R-CY-4: Ship management and maritime services. Trigger: shipping or maritime services. Message: "Ship management and tonnage tax structures need specialist advice."
• R-CY-5: Special schemes. Trigger: tour operator margin scheme, second-hand goods or car margin schemes, investment gold, farmers' scheme, urban taxi scheme, cash accounting, the small business scheme (SME-SS), OSS / IOSS. Message: "Special schemes need specialist computation."
• R-CY-6: Immovable property. Trigger: sale, lease or construction of property, including the 5% main-residence scheme. Message: "Immovable property needs specialist review."
• R-CY-7: Distance sales. Trigger: B2C sales of goods to other member states, or distance sales into Cyprus by a foreign seller. Message: "The distance-sales threshold and OSS position must be checked by an accountant."

Section 4: Supplier pattern library

Match by case-insensitive substring. Most specific match wins. "No input VAT" means nothing goes in Box 4; the Box 7 column says whether the net value still belongs in Box 7.

4.1 Cypriot banks

Pattern	Treatment	Box 7	Notes
BANK OF CYPRUS, BOC	Exempt: no input VAT for bank charges and fees	Yes (exempt purchase)	Exempt financial service
HELLENIC BANK	Same	Yes	Same
RCB BANK	Same	Yes	Same
EUROBANK CYPRUS	Same	Yes	Same
ASTROBANK	Same	Yes	Same
REVOLUT, WISE, N26 (fee lines)	Exempt fee lines	Yes	Check for taxable subscription invoices
TOKOI, INTEREST	EXCLUDE	No	Interest is not a supply to the business
DANEIO, LOAN	EXCLUDE	No	Loan principal

4.2 Cypriot government and statutory bodies

Pattern	Treatment	Box 7	Notes
TAX DEPARTMENT, TMHMA FOROLOGIAS	EXCLUDE	No	Tax payment
SOCIAL INSURANCE, KOINONIKON ASFALISION	EXCLUDE	No	Contribution to a fund
REGISTRAR OF COMPANIES	EXCLUDE	No	Fees and duties
CYPRUS STOCK EXCHANGE	Ask	Ask	Regulatory fee or taxable service: check invoice

4.3 Cypriot utilities

Pattern	Treatment	Box	Notes
EAC, ELECTRICITY AUTHORITY CYPRUS	Domestic 19%	4 (input)	Electricity. Only tariff 08 is in the 5% row
WATER BOARD, SYMVOULIO YDATOPROMITHEIAS	Domestic 5%	4 (input)	Water is in the 5% row
CYTA, CYTANET	Domestic 19%	4 (input)	Telecoms
EPIC, PRIMETEL	Domestic 19%	4 (input)	Telecoms

4.4 Insurance

Pattern	Treatment	Box 7	Notes
GENERAL INSURANCE CYPRUS	Exempt: no input VAT	Yes	Insurance is exempt (Seventh Schedule, Table B)
CNP CYPRIALIFE	Same	Yes	Same
ALLIANZ CYPRUS	Same	Yes	Same
ATLANTIC INSURANCE	Same	Yes	Same
ASFALEIA, INSURANCE	Same	Yes	Same

4.5 Post and logistics

Pattern	Treatment	Notes
CYPRUS POST, KYPRIAKO TACHYDROMEIO	Exempt: no input VAT	The exemption covers services by Cyprus Post as a public body
AKIS EXPRESS, ACS COURIER CY	Domestic 19%	Private couriers are not covered by the Cyprus Post exemption
DHL INTERNATIONAL	Check invoice entity	Reverse charge if billed from abroad

4.6 Transport

Pattern	Treatment	Notes
TAXI	Domestic 9%	Urban, intercity and rural taxis are in the 9% row
INTERCITY BUSES, TRAVEL EXPRESS	Domestic 9%	Intercity and tourist buses are in the 9% row
URBAN BUS, RURAL BUS	Domestic 5%	Urban and rural buses are in the 5% row
RYANAIR, WIZZ AIR (international)	No Cyprus input VAT unless the ticket shows it	Check the ticket

4.7 Food retail and restaurants

Pattern	Treatment	Notes
ALPHAMEGA, PAPANTONIOU, LIDL CY, CARREFOUR CY	Default BLOCK	Personal provisioning
RESTAURANT, ESTIATORIO, TAVERNA	Default BLOCK	Entertainment (Section 5.11)

4.8 SaaS: EU suppliers (reverse charge: Boxes 1, 4, 6, 7 and 11B)

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
AWS EMEA SARL	AWS EMEA SARL (LU)	LU = EU reverse charge

4.9 SaaS: non-EU suppliers (reverse charge: Boxes 1, 4, 6 and 7; not 11B)

Pattern	Billing entity	Notes
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 an EU entity
FIGMA	Figma Inc (US)	Non-EU reverse charge
CANVA	Canva Pty Ltd (AU)	Non-EU reverse charge

4.10 Payment processors

Pattern	Treatment	Notes
STRIPE (transaction fees)	Default taxable, reverse charge: output VAT in Box 1, input VAT in Box 4, value in Boxes 6 and 7, plus 11B when billed by an EU entity	The exemptions page puts processing, clearing and authorisation services for card payments at the standard rate. Treat a fee as exempt only where the invoice shows an exempt payment service.
PAYPAL (transaction fees)	Same	Same

4.11 Professional services (Cyprus)

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

4.12 Payroll and contributions

Pattern	Treatment	Notes
KOINONIKES ASFALISIS, SOCIAL INSURANCE	EXCLUDE (not in Box 7)	Contributions to funds
SALARY, MISTHOS	EXCLUDE (not in Box 7)	Wages

4.13 Property and rent

Pattern	Treatment	Notes
ENOIKIO, RENT (commercial, invoice shows VAT)	Domestic 19%	Commercial lease with VAT charged
ENOIKIO, RENT (residential or no VAT)	No input VAT; Box 7 if a business expense	Refer property questions (R-CY-6)

4.14 Internal transfers and exclusions

Pattern	Treatment	Notes
OWN TRANSFER, INTERNAL	EXCLUDE	Internal movement
MERISMA, DIVIDEND	EXCLUDE	Not a supply
LOAN REPAYMENT	EXCLUDE	Loan principal
ATM, CASH WITHDRAWAL	Ask	Default exclude

Section 5: Classification rules

5.1 Standard rate

Default rate for any supply not in a reduced row of the rates table in Section 1. Output VAT in Box 1, value in Box 6. Input VAT in Box 4, value in Box 7.

5.2 Reduced rates

Use only the items the rates table lists for each band. Common traps from the live page:

• Taxis and intercity or tourist buses are in the 9% row; urban and rural buses are in the 5% row.
• Books, newspapers and magazines are in the 3% row, not the 5% row.
• Alcoholic drinks, beer, wine and soft drinks are excluded from the 5% food row (the rates page prints the word as 'καρασί').
• Electricity is standard rated except tariff 08.
• The 3% row is not a social housing rate.

5.3 The 5% rate on a main residence

From Tax Department circular 11/2023 (a scanned document; only clean fragments are quoted). The rules apply under the amending law in force from 16 June 2023. The rates page lists this purchase or construction in the 5% row only "μετά από έγκριση του Εφόρου" (after the Commissioner's approval).

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/01/%CE%95%CE%95-11_2023.pdf
The 5% rate covers the first 130 square metres of buildable area, and only up to this value	EUR 350,000	"η αξία είναιμέχρι €350.000"
If the total value of the purchase or construction exceeds this, the standard rate applies to the WHOLE amount (a cliff)	EUR 475,000	"πέντε χιλιάδες ευρώ (€475.000), επιβάλλεται Φ.Π.Α. με τον εκάστοτε ισχύοντα κανονικό συντελεστή"

• Area cliff: the 5% rate does not apply at all where the total buildable area "υπερβαίνει τα 190 τετραγωνικά μέτρα" (exceeds 190 square metres). The circular joins the area and value tests with "ή/και" (and/or): failing either one loses the whole relief.
• Between the two levels the 5% rate is applied pro rata to the square metres, as the circular sets out. The circular also has special rules for large families and for people with disabilities.
• If the owner stops using the home as a residence within ten years, they must tell the Commissioner within thirty days and pay the difference from the standard rate for the unused period; the Tax Department raises the debt by issuing a VAT Return for Special Cases (Δήλωση Φ.Π.Α. για Ειδικές Περιπτώσεις). Sources: https://www.gov.cy/mof-tax/documents/dikaiomata-kai-ypochreoseis/ and https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/sychnes-erotiseis-dilosis-f-p-a-gia-eidikes-periptoseis/
• For a VAT return, this matters to a developer or contractor deciding which rate to charge. Refer every case (R-CY-6).

5.4 Zero rate and EU supplies

• Exports of goods and the ship and aircraft supplies in the 0% row: value in Box 9 and Box 6.
• Supplies of goods to other EU member states: value in Box 8A and Box 6, and file VIES.
• Services to taxable persons in other EU member states where the customer accounts for the VAT: value in Box 8B and Box 6, and file VIES. Verify the customer's VAT number.
• International passenger transport sold by a Cyprus business: 0% (table in Section 1), value in Box 9 and Box 6.

5.5 Exempt supplies

The exempt supplies are in the Seventh Schedule, Tables A and B, of the VAT Law. The Tax Department exemptions page lists, among others: services by Cyprus Post as a public body; hospital and medical care by recognised health professionals; education by public schools and registered private schools and institutes; insurance and reinsurance; credit, bank account, card and other financial services; lotteries, betting and gambling. Property exemptions are on a separate page (R-CY-6). The same page puts card processing, clearing and authorisation services and the collection of third-party receivables at the standard rate. Source: https://www.gov.cy/mof-tax/documents/exairoymenes-synallages/

Exempt sales go in Box 6 (no VAT in Box 1). Exempt purchases go in Box 7 (no VAT in Box 4).

5.6 Reverse charge: services received from another EU member state

For services whose place of supply is Cyprus (article 11), received from a taxable person in another member state: self-assess output VAT in Box 1 (not Box 2), claim input VAT in Box 4 under the conditions of article 21, enter the value in Boxes 6 and 7, and also in Box 11B.

5.7 Reverse charge: services received from outside the EU

Output VAT in Box 1, input VAT in Box 4 under article 21, value in Boxes 6 and 7. Nothing in Box 11B.

5.8 Acquisitions of goods from another EU member state

Output VAT in Box 2, input VAT in Box 4 under article 21, value in Boxes 7 and 11A. The tax point is the earlier of the supplier's invoice date and the 15th day of the month after the goods were sent.

5.9 Imports of goods from outside the EU

VAT paid on import goes in Box 4. The value of goods cleared through customs in the period goes in Box 7.

5.10 Domestic reverse charge (articles 11A to 11Δ)

Output VAT in Box 1, input VAT in Box 4 under article 21, value in Boxes 6 and 7. Refer (R-CY-3).

5.11 Input VAT that must not go in Box 4

The return guide says do not include VAT on:

• purchases for private use;
• business entertainment of employees or of persons engaged in managing a company ("για επιχειρηματική ψυχαγωγία σε εργοδοτούμενους, ή σε πρόσωπα που ασχολούνται με τη διεύθυνση εταιρείας");
• second-hand goods bought under the second-hand goods scheme;
• payments to the Tax Department under an assessment.

To claim any input VAT, the business must hold a tax invoice dated in the period. Credit notes received reduce Box 4.

Client entertainment and motor vehicles. The Tax Department's General VAT Guide (Information Leaflet 10, dated November 2001, still published on gov.cy) lists among the VAT that may not be deducted: the purchase, hire or import of a motor car, other than taxis, hire cars and driving-school cars, where "car" means an ordinary passenger car and excludes single-seaters, vehicles with more than ten seats, commercial and van-type vehicles, caravans, ambulances and vehicles over three tonnes; and business entertainment expenses, without limiting them to employees or managers. The guide predates the current law, so this Guide keeps the conservative default (block, ask, refer) and does not restate the rule as current law. Source: https://www.gov.cy/media/sites/167/2026/01/%CE%93%CE%B5%CE%BD%CE%B9%CE%BA%CF%8C%CF%82-%CE%9F%CE%B4%CE%B7%CE%B3%CF%8C%CF%82-%CE%A6.%CE%A0.%CE%91.-%CE%95%CE%BD%CE%B7%CE%BC%CE%B5%CF%81%CF%89%CF%84%CE%B9%CE%BA%CF%8C-%CE%88%CE%BD%CF%84%CF%85%CF%80%CE%BF-10.pdf

5.12 Output VAT that is easy to miss

The return guide lists output VAT due in Box 1 beyond normal sales, including: services received from abroad and reverse charge purchases; commission on sales made for third parties; sales of fixed assets; goods taken for private use; VAT on self-billed invoices; VAT refunded for bad debts that are later recovered; and gifts of goods above a cost limit (table below). Credit notes issued reduce Box 1.

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/01/%CE%9F%CE%B4%CE%B7%CE%B3%CF%8C%CF%82-%CE%B3%CE%B9%CE%B1-%CE%A3%CF%85%CE%BC%CF%80%CE%BB%CE%AE%CF%81%CF%89%CF%83%CE%B7-%CE%94%CE%AE%CE%BB%CF%89%CF%83%CE%B7%CF%82-%CE%A6%CE%A0%CE%91-06082024.pdf
Goods given as gifts: output VAT is due when the cost exceeds this (see circular 195)	EUR 17	"δώρα όταν το κόστος υπερβαίνει το ποσό των €17"

5.13 Return format rules

From the same return guide:

• Boxes 1 to 5 are VAT amounts: two decimals, with a comma as the decimal sign, not a point, no thousands separators, a minus sign for a negative amount, "0" when empty. Box 3 must equal Box 1 plus Box 2, and Box 5 must equal Box 3 minus Box 4.
• Boxes 6 to 11B are values without VAT, rounded to the nearest euro, "0" when empty.
• Box 6 must be at least the sum of Boxes 8A, 8B, 9, 10 and 11B. Box 7 must be at least the sum of Boxes 11A and 11B.
• Leave out of Box 6: capital you put into the business, loans, dividends, insurance compensation, and stock exchange transactions (unless you are a financial institution).
• Leave out of Box 7: wages, contributions to funds, money donations, interest, dividends, taxes and fees.
• Triangular transactions as the intermediate supplier: purchase value in Box 7, sale value in Boxes 6 and 10.
• A negative Box 5 is a credit. It can be carried forward, set off against other tax owed, or claimed back on form 4B with the return if the conditions for a refund are met.

Section 6: Tier 2 catalogue

6.1 Fuel and vehicle costs

Default: no recovery. Question: "Vehicle type and business-use percentage?" Refer (Section 5.11).

6.2 Entertainment

Default: block. Question: "Who was entertained, and for what business purpose?"

6.3 Ambiguous SaaS

Default: non-EU reverse charge. Question: "Check invoice entity."

6.4 Owner transfers

Default: exclude. Question: "Customer payment, own money, or loan?"

6.5 Individual incoming

Default: domestic B2C at the standard rate. Question: "Sale? Country?"

6.6 Foreign incoming

Default: standard rate. Question: "B2B? Country? VAT number?"

6.7 Large purchases

Default: deductible if business use is confirmed; flag if a capital item. Question: "Useful life more than one year?"

6.8 Mixed-use telecom or home office

Default: no recovery. Question: "Business line or mixed?"

6.9 Outgoing to individuals

Default: exclude. Question: "Contractor, wages, or personal?"

6.10 Cash withdrawals

Default: exclude. Question: "Cash purpose?"

6.11 Rent

Default: no input VAT unless the invoice shows VAT. Question: "Commercial or residential? Does the landlord charge VAT?"

6.12 Basic goods around 30 September 2026

Default: 0% only for supplies made up to and including 30 September 2026; the normal rate after. Question: "Which sales of baby milk, nappies, meat, fish or fruit and vegetables fall before and after 1 October 2026?"

Section 7: Worked examples

All amounts in these examples are hypothetical bank lines in euro. The arithmetic is checked in quality-cases.json.

Example 1: Non-EU SaaS reverse charge (Notion)

Input line: 03.04.2026 ; NOTION LABS INC ; DEBIT ; Monthly subscription ; -14.68 ; EUR

Reasoning: US supplier, service received from outside the EU. Self-assess output VAT at the standard rate in Box 1. Claim the same amount in Box 4 if the service is used for taxable supplies. Value in Boxes 6 and 7. Nothing in Box 11B. Net VAT effect zero.

Date	Counterparty	Net	VAT	Rate	Box (input)	Box (output)	Value boxes	Default?
03.04.2026	NOTION LABS INC	14.68	2.79	19%	4	1	6, 7	N

Example 2: EU service reverse charge (Google Ads)

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

Reasoning: Irish supplier, service received from another member state. Output VAT in Box 1, input in Box 4, value in Boxes 6, 7 and 11B.

Date	Counterparty	Net	VAT	Rate	Box (input)	Box (output)	Value boxes	Default?
10.04.2026	GOOGLE IRELAND LIMITED	850.00	161.50	19%	4	1	6, 7, 11B	N

Example 3: Entertainment

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

Reasoning: Restaurant bill. The return guide bars input VAT on business entertainment of employees or company managers; the 2001 General VAT Guide blocks business entertainment generally. Default: block and ask who attended.

Date	Counterparty	Gross	VAT claimed	Box	Default?	Question?
15.04.2026	COLUMBIA STEAK HOUSE	220.00	0	none	Y	"Who was entertained?"

Example 4: Equipment purchase

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

Reasoning: Business equipment bought in Cyprus with a tax invoice. Input VAT at the standard rate in Box 4, net value in Box 7.

Date	Counterparty	Gross	Net	VAT	Rate	Box	Default?
18.04.2026	LOGITECH CYPRUS	1,595.00	1,340.34	254.66	19%	4 (VAT), 7 (net)	N

Example 5: EU B2B service sale

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

Reasoning: Service to a German business. The customer accounts for the VAT in Germany. No Cyprus VAT; value in Boxes 8B and 6; include on the VIES statement. Verify the customer's VAT number.

Date	Counterparty	Net	VAT	Box	Default?	Question?
22.04.2026	STUDIO KREBS GMBH	3,500.00	0	8B, 6	Y	"Verify the German VAT number"

Example 6: Fuel

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

Reasoning: Fuel. Business use unknown and the 2001 General VAT Guide blocks VAT on passenger cars; fuel is not addressed. Default: no recovery, ask, refer.

Date	Counterparty	Gross	VAT claimed	Box	Default?	Question?
28.04.2026	PETROLINA STATIONS	60.00	0	none	Y	"Vehicle and business-use percentage?"

Section 8: Excel working paper template (Cyprus-specific)

Per vat-workflow-base Section 3. Column H accepts the Cyprus return box codes (1 to 11B). Sheet "Box Summary" maps directly to the return. Check the format rules in Section 5.13 before filing. Bottom line: Box 5 (Box 3 minus Box 4).

Section 9: Cyprus bank statement reading guide

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

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

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

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

Section 10: Onboarding fallback

10.1 Entity type

Inference: Ltd = company; otherwise sole trader. Fallback: "Company or self-employed?"

10.2 VAT registration

Fallback: "Are you VAT-registered? If not, have your taxable sales in the last twelve months passed the registration threshold?"

10.3 VAT number

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

10.4 Filing period

Inference: quarterly. Fallback: "Which tax period does your registration certificate show?"

10.5 Industry

Fallback: "What does the business do?"

10.6 Exempt supplies

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

10.7 Credit brought forward

Fallback: "Excess VAT credit from the prior period?"

10.8 Cross-border customers

Fallback: "Customers outside Cyprus? Businesses or consumers?"

The method, step by step

1. Confirm the business must file: registered, or required to register under the tests in the VAT registration page (https://www.gov.cy/mof-tax/documents/eggrafi-akyrosi-f-p-a/eggrafes-mitrooy-f-p-a/ypochreosi-dikaioma-eggrafis-sto-mitroo-f-p-a/). If not, R-CY-1.
2. Confirm the tax period on the registration certificate and the deadline: the 10th day after the end of the month following the period, moved to the next working day if it falls on a weekend or holiday (https://www.gov.cy/mof-tax/prothesmies/).
3. Classify each sale by the rates page (https://www.gov.cy/mof-tax/documents/syntelestes-f-p-a/): standard, 9%, 5%, 3%, 0%, exempt (https://www.gov.cy/mof-tax/documents/exairoymenes-synallages/), or EU or out-of-scope. Split basic goods at 30 September 2026.
4. Classify each purchase with the supplier library and the reverse charge rules in Sections 5.6 to 5.10, which follow the Tax Department return guide (https://www.gov.cy/media/sites/167/2026/01/%CE%9F%CE%B4%CE%B7%CE%B3%CF%8C%CF%82-%CE%B3%CE%B9%CE%B1-%CE%A3%CF%85%CE%BC%CF%80%CE%BB%CE%AE%CF%81%CF%89%CF%83%CE%B7-%CE%94%CE%AE%CE%BB%CF%89%CF%83%CE%B7%CF%82-%CE%A6%CE%A0%CE%91-06082024.pdf). Services from abroad: output VAT in Box 1. Goods from the EU: output VAT in Box 2.
5. Remove blocked input VAT (Section 5.11) and add easy-to-miss output VAT (Section 5.12).
6. Fill Boxes 1 to 11B and run the format checks in Section 5.13.
7. Check for errors in earlier returns. Correct them in this return only within the limit and the three-year window in the corrections FAQ (https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/sychnes-erotiseis-se-schesi-me-tis-diorthoseis-lathon/); otherwise write to the Tax Department through TFA.
8. File in TFA and pay by the deadline, or claim the credit or a refund on form 4B (https://www.gov.cy/media/sites/167/2026/01/%CE%9F%CE%B4%CE%B7%CE%B3%CF%8C%CF%82-%CE%B3%CE%B9%CE%B1-%CE%A3%CF%85%CE%BC%CF%80%CE%BB%CE%AE%CF%81%CF%89%CF%83%CE%B7-%CE%94%CE%AE%CE%BB%CF%89%CF%83%CE%B7%CF%82-%CE%A6%CE%A0%CE%91-06082024.pdf). File VIES by the 15th day after each month with EU supplies (https://www.gov.cy/mof-tax/documents/dikaiomata-kai-ypochreoseis/).

Ask the client first

• Which tax period does your VAT registration certificate show (quarter ending which month, or monthly)?
• Do you make any exempt supplies, such as financial services, insurance, medical care, education, or property letting? (Partial exemption, R-CY-2.)
• Do you sell to customers in other EU countries, and are they businesses with VAT numbers or consumers? (Boxes 8A and 8B, VIES, distance sales.)
• Do you buy services or goods from suppliers outside Cyprus? Which entity bills you? (Box 1 or Box 2, and 11A or 11B.)
• Did you sell baby milk, nappies, meat, fish or fruit and vegetables in a period that includes 30 September 2026?
• Did you find errors in earlier returns, and how large are they in total? (The correction limit in Section 2.)

When to refuse or refer

• Partial exemption, domestic reverse charge, ship management, any special scheme, property (including the 5% main-residence scheme), and distance sales: R-CY-2 to R-CY-7.
• The business is not established in Cyprus, or is in the small business scheme (Law 104(I)/2025) or OSS / IOSS.
• Errors in earlier returns above the correction limit or older than three years: the business must write to the Tax Department.
• Client entertainment, cars and fuel, where the amount matters: the only source is the Tax Department's 2001 General VAT Guide, which predates the current law.
• Late registration or unfiled returns: penalties, interest and possible estimated assessments.

Sources

1. Tax Department, VAT rates: https://www.gov.cy/mof-tax/documents/syntelestes-f-p-a/
2. Tax Department, obligation and right to register for VAT: https://www.gov.cy/mof-tax/documents/eggrafi-akyrosi-f-p-a/eggrafes-mitrooy-f-p-a/ypochreosi-dikaioma-eggrafis-sto-mitroo-f-p-a/
3. Tax Department, submitting and amending VAT returns: https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/
4. Tax Department, guide to completing the VAT return: https://www.gov.cy/media/sites/167/2026/01/%CE%9F%CE%B4%CE%B7%CE%B3%CF%8C%CF%82-%CE%B3%CE%B9%CE%B1-%CE%A3%CF%85%CE%BC%CF%80%CE%BB%CE%AE%CF%81%CF%89%CF%83%CE%B7-%CE%94%CE%AE%CE%BB%CF%89%CF%83%CE%B7%CF%82-%CE%A6%CE%A0%CE%91-06082024.pdf
5. Tax Department, VAT return FAQ: https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/sychnes-erotiseis-dilosis-f-p-a/
6. Tax Department, FAQ on correcting errors: https://www.gov.cy/mof-tax/documents/ypovoli-tropopoiisi-diloseon-f-p-a/sychnes-erotiseis-se-schesi-me-tis-diorthoseis-lathon/
7. Tax Department, rights and obligations: https://www.gov.cy/mof-tax/documents/dikaiomata-kai-ypochreoseis/
8. Tax Department, exempt transactions: https://www.gov.cy/mof-tax/documents/exairoymenes-synallages/
9. Tax Department, circular 11/2023 on the 5% residence rate: https://www.gov.cy/media/sites/167/2026/01/%CE%95%CE%95-11_2023.pdf
10. Tax Department, deadline calendar: https://www.gov.cy/mof-tax/prothesmies/
11. VAT Law N.95(I)/2000 as amended, and Κ.Δ.Π. 314/2001 (cited by section in words).
12. EU VAT Directive 2006/112/EC: via the eu-vat-directive Guide.
13. Consolidated VAT Law (Κ.Δ.Π. 221/2026): https://www.gov.cy/media/sites/167/2026/01/Consolidated-VAT-Law-%CE%9A%CE%94%CE%A0-221_2026.pdf
14. Tax Department, General VAT Guide (Information Leaflet 10, November 2001): https://www.gov.cy/media/sites/167/2026/01/%CE%93%CE%B5%CE%BD%CE%B9%CE%BA%CF%8C%CF%82-%CE%9F%CE%B4%CE%B7%CE%B3%CF%8C%CF%82-%CE%A6.%CE%A0.%CE%91.-%CE%95%CE%BD%CE%B7%CE%BC%CE%B5%CF%81%CF%89%CF%84%CE%B9%CE%BA%CF%8C-%CE%88%CE%BD%CF%84%CF%85%CF%80%CE%BF-10.pdf

Known gaps

1. Ship management and maritime sector not covered.
2. Domestic reverse charge, special schemes and immovable property are refusals.
3. The EU distance-sales threshold and the VAT number format are not proved on an allowed page. The rules on client entertainment and on cars and fuel rest only on a 2001 document (Source 14), which predates the current law.

Disclaimer

This Guide and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this Guide. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

The most up-to-date version of this Guide is maintained at openaccountants.com.