CYPRUS V.A.T. AND TX ACTS BY THE CYPRUS GOVERNMENT

In its efforts to help individuals and entrepreneurs for a smooth operation of their business activities and finances the Cyprus Government has recently voted and approved the following acts as follows:

V.A.T. Submissions and Deferrals of Payments

The act allows for V.A.T. Returns with period ending 29 February 2020, 31 March 2020 and 30 April 2020 to be still submitted on time as per normal deadlines but the payment to be deferred until the 10^th of November 2020. In cases whereby the V.A.T. submissions will be submitted on time then no penalties or interests will apply to the V.A.T. amount due until the 10^th of November 2020.

It should be noted that certain categories of business are excepted from the above act like producers of  electric power, supermarkets, retailers of vegetable shops and distribution, fuel retailing, internet services, pharmacies etc.

General Health System Contributions – G.E.S.Y.

The government has also postponed the increase on contributions to the healthcare system until the 30^th of June 2020; i.e. the months of April, May, June 2020 will be payable under the same contribution levels payable in the previous months. The increase will be applicable after the 1^st of July 2020 unless otherwise amended by the Government Authorities.

The content of the above article is to provide a general briefing on the recent developments in the V.A.T. and Tax laws as taken in place for Covid-19. Specialized, tailor made advice should be requested based on each scenario and specific needs.