In relation to the exit of the United Kingdom (UK) from the EU on 1 January 2021, the Tax Department issued on 15/02/2021 Implementing Regulation 10/2021 regarding the appointment of VAT Representatives.
As per the Implementing Regulation, taxable persons established in the UK or natural persons residing in the UK making taxable supplies in Cyprus without having a fixed establishment in Cyprus, are neither required to appoint a VAT representative nor to pay a security deposit.
However, if the Trade Agreement is not ratified by the EU then arrangements will be in place so that the persons mentioned above will proceed either with the appointment of a VAT representative or to pay the relevant security deposit.
How can KPMG assist?
Should you like to further discuss the content and potential impact of the above to your business, please contact one of our trusted advisors from the Indirect Tax practice at KPMG Cyprus.
KPMG’s Indirect Tax team provides advice and assistance at the Cyprus and international level. We structure our effort to dovetail with your business issues and strategy. Our focus is on supplying value adding and pragmatic advice rather than just a list of recommendations.
Our tax professionals are able to review your company’s current tax position and provide relevant advice and planning on a range of indirect taxes, including VAT, customs duties and excise taxes (such as tax audits, reorganizations and acquisitions, etc.). Furthermore, we can help your company with its administrative obligations and contacts with administrative bodies.