Amendments to Cyprus VAT Act

Recent amendments have been made to the VAT Act concerning the right to appeal a decision of the Tax Authorities regarding VAT.  Specifically, taxable persons can submit a hierarchical appeal to the Tax Tribunal, within 45 days from the date of notification of the Commissioner's decision to the applicant, before submitting an appeal to the Administrative Court for the following:

(a) VAT imposed on the supply of goods or services, intra-community acquisition of goods or importation of goods from outside the EU.

(b) Transaction between related parties when no VAT is claimable

(c) Omission of the submission of VAT returns or certificates in connection to the acquisition of certain goods from non-taxable persons

(d) Limitation period and supplementary assessments

(e) The amount of any input VAT a taxable person is eligible to claim.

Taxable persons, whether legal entities or individuals have the right to submit objections to the Commissioner of Taxation, but not to the Tax Tribunal, in relation to VAT matters included in the amended Article 52 of the Cyprus VAT Act, such as the registration and deregistration of a taxable person for VAT purposes and  any request for claiming input VAT as per Article 12D.

Preconditions for appealing to the Tax Tribunal

The applicant must have submitted all the necessary evidence/documentation, all VAT returns must have been submitted and any amount payable has been paid/arranged to be paid and the undisputed amount payable has been paid or relevant guarantee has been given.

The Tax Tribunal within 12 months of the submission of an appeal can either cancel, confirm, amend or issue a new decision replacing the previous decision of the Commissioner as well as refer the case back to the Commissioner with instructions on specific points.  It should be noted that the taxpayer reserves the right to submit an appeal to the Administrative Court following the final decision of the Tax Tribunal but not the Commissioner of Taxation. 

The content of this circular is for information purposes only and is not tax or legal advice. Our team of specialists is ready to assist you in detail on all tax matters.

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