Indirect Tax Update Deferral of VAT payments Indirect Tax Update Deferral of VAT payments
Date: 7 May 2021
In the context of assisting businesses facing liquidity problems due to the COVID-19 pandemic, the Ministry of Finance announced its immediate intention of submitting a bill to the House of Representatives, which will include relevant amendments for the non-imposition of monetary penalties or interest to taxable persons having VAT payable amount on 10/5/2021, 10/6/2021 and 10/7/2021.
Nevertheless, the amounts due should be paid by 10/8/2021, 10/9/2021 and 10/10/2021 respectively.
It is pointed out that in order for the abovementioned deferral to be applied, taxable persons should timely submit their VAT returns by 10/5/2021, 10/6/2021 and 10/7/2021 respectively.
The announcement published by the Ministry of Finance on 6/5/2021 has not been voted into Law, and it will not be possible to be voted by Monday 10th of May 2021, where the respective VAT payment is due. However, we are of the opinion that the entitled taxable persons can benefit from the deferral provided they timely submit their VAT return, considering that the Law should be voted at a later stage by the new House of Representatives.
It is also noted that the amendment will not cover taxable persons with activities falling into the categories specified in the relevant announcement (refer to the link for more info).
How can KPMG assist?
Should you like to further discuss the content and potential impact of the Circular to your business, please contact one of our trusted advisors from the Indirect Tax Department 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.
