Category: VAT



Birds in the sunset
27/05/2021

EU e-commerce VAT rules

in 2021, VAT

Changes to the EU e-commerce VAT rules concerning Business to customers (B2C) will take effect as from 1 July 2021.

Below mentioned changes, will align with EU e-commerce VAT rules and are expected to be approved by newly formed parliament.

As a result, from 1 July 2021 there will be two types of distance sales of goods:

  • intra-community distance sales. Business to consumer (B2C) Sales of goods dispatched from EU Member State to a customer in another EU Member State
    • distance sales of goods imported from third (non-EU) countries. These are B2C sales of goods from a third country to a customer in an EU Member State

For intra-community distance (B2C) Sales

  • A new EU-wide turnover threshold of EUR 10 000, irrespective of the VAT registration thresholds per country, will replace the existing thresholds for distance sales of goods within the EU.
  • VAT to be charged will be that of the country of residence of the customer.
  • Existing Union scheme of the Mini One Stop Shop (MOSS) will be extended to cover both cross-border supplies of goods and services under the new portal, the One Stop Shop (OSS). Suppliers can declare and pay VAT due in all other Member States through the portal of their Member State of establishment. Otherwise, suppliers would have to register in each Member State where they make B2C distance sales.

For distance sales of goods imported from third (non-EU) countries

  • VAT small item exemption of EUR 22 will be removed meaning all goods imported into EU from third countries will now be subject to VAT. As a result, customer will collect by the national postal service or a courier service.

To ease the process, the European Commission has introduced two optional systems:

  • the Import one stop shop (IOSS) that allows businesses to collect the VAT at the time of the order and to declare and pay the VAT on these distance sales of imported goods for the whole EU in a single VAT return.
  • the special arrangements that allow post and couriers to declare and pay the collected VAT on a monthly basis.

New Rules for Online Sales Platforms / Electronic Interfaces

Online platforms that are “deemed suppliers” will be responsible (jointly and severably with the actual supplier of the goods) for reporting and paying VAT on sales made by suppliers that use the platforms.

Platforms facilitating supplies of goods become “deemed suppliers” when facilitating the distance sales of imported goods made by a seller and the goods are:

  • distance sales of goods imported to EU with a value not exceeding EUR 150 and not subject to excise duties; and/or
  • supplies of goods to customers in the EU, irrespective of their value, when the underlying supplier/seller is not established in the EU (both domestic supplies and distance sales within the EU are covered).

The OSS/IOSS online portals are also available to online platforms / electronic interfaces facilitating these distance sales of goods. Again, if the electronic interface is established outside the EU, they will normally need to appoint an EU-established intermediary to fulfil their VAT obligations under the IOSS.

Bee
17/04/2020

CHANGE OF TAX PERIOD AND CALCULATION OF VAT PAYABLE

in 2020, Updates, VAT

The following must be applied ONLY by those Companies that have been notified by the Authorities through TAXISnet.

Change of Tax period

The next tax period ends on 31st March 2020 and then after every calendar month until 30th June 2020.

The filling day of the VAT Return will be the 27th day following the end of each period. In that respect the filling dates change as follows:

Normal tax periodNew tax periodDeadline for filing and payment of VAT for the tax period up to 31/3/2020
1/1/2020- 31/3/20201/1/2020- 31/3/202027/4/2020
1/2/2020- 30/4/20201/2/2020- 31/3/202027/4/2020
1/3/2020- 31/5/20201/3/2020- 31/3/202027/4/2020

Then after and starting as from 1/4/2020:

New Tax periodFinal date for T.R. submission and payment of tax payable
1/4/2020-30/4/202027/5/2020
1/5/2020- 31/5/202027/6/2020
1/6/2020- 30/6/202027/7/2020

Calculation of tax payable

  • For those Companies that are included in Table 1 here below the VAT amount payable must be in full – 100%
  • For any other Company, VAT payable 30% of the amount due up to that period taking into consideration the balance due from previous periods.
Payment date  27/4/202027/5/202027/6/202027/7/2020
 Calculation of tax payable30% of the VAT due for the period up to 31/03/202030% of the VAT due for the period up to 30/4/2020   plus 30% of the VAT due for the period up to 31/03/202030% of the VAT due for the period up to 31/5/2020   plus 30% of the VAT due for the period up to 30/04/2020 and 31/03/202030% of  the VAT due for the period up to 30/6/2020 plus 30% of the VAT due for the period up to 31/05/2020, 30/04/2020 and 31/03/2020

The balance due must be settled by November 10th 2020.

TABLE 1

35111 Electrical power supply
36001 Collection and distribution of water
47111 Supermarkets
47112 Mini – markets
47211 Retail sales of fruits and vegetables
47221 Retail sales of meat and poultry
47241 Bakeries
47242 Patisseries
47301 Petrol stations
47411 Computer hardware, software and video games retailers
47621 Office supplies reatilers and newspaper distributors
61101 CYTA
61201 Internet providers
61301 Satellite communications
61901 Other telecommunication companies

Stack Landscape
06/02/2018

VAT changes on Land & Leasehold property

in 2018, VAT

On the 3rd of November and 29th of December 2017, the House of Parliament voted the amendment of the Cyprus VAT Legislation regarding the taxation of building land, in order to align it with the provisions of EU VAT Directive.

The amendments relate to (1) the imposition of 19% VAT on the sale of building land, (2) the taxation of new commercial immovable property leasing contracts and (3) the application of reverse charge on transactions relating to transfers of immovable property during the process of loan restructuring.

For more details regarding the amendments voted, please click here.