Cyprus: Extended deadlines for VAT payments (COVID-19)

Cyprus: Extended deadlines for VAT payments (COVID-19)

Amendments to the value added tax (VAT) law, intended to assist businesses manage their cash-flow due to the coronavirus (COVID-19) pandemic, delay the dates for remitting VAT payments.

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The amendments relate to the deferral of payment of VAT for periods ending 31 December 2020 and 31 January 2021. The VAT payment for these periods is due in three equal installments on the following dates:

  • 10 April 2021
  • 10 May 2021
  • 10 June 2021

The deferral of payment of VAT due only applies to periods ending on 31 December 2020 and 31 January 2021, provided that:

  • The relevant VAT returns are timely filed (10 February and 10 March, respectively)
  • Taxpayers do not come within categories specified in the amending law. Businesses may need to confirm their economic activity code with the tax department to check whether they fall under the specified categories.

If the conditions are met and the amount due is paid in three equal installments by 10 April 2021, 10 May 2021, and 10 June 2021, neither administrative penalties nor interest will be levied.

Read a February 2021 report prepared by the KPMG member firm in Cyprus

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