NEW LAWS FOLLOWING THE COVID-19 OUTBREAK

Following our latest newsletter sent on 19th March 2020, the Cyprus Parliament has voted the relevant TAX and VAT laws on 27th March 2020.

VAT RATE:

The normal VAT rate of 19% will NOT be reduced to 17% from 01/04/2020.

Also the reduced rate of 9% will NOT be reduced to 7% from 01/04/2020.

General Health System (GHS) Law

Decreased Contributions for Gesy for 3 months, April – June 2020, as per below table:

VAT Law

Deferral of the VAT payable amounts for the VAT quarters ending:

• 29 February 2020 (due 10 April 2020)
• 31 March 2020 (due 10 May 2020)
• 30 April 2020 (due 10 June 2020)

Only if the VAT declaration is submitted by the due date, and any VAT payable is paid by 10 November 2020.

If for any reason there is late submission of the VAT return, then the following will be applied:

• Additional tax of 10% on VAT payable amounts
• Annual interest of 1,75%

The application of the amendments does not apply to certain categories of businesses as follows:

• Producers of electricity
• Collection and distribution of water (for water supply)
• Groceries and supermarkets that are mainly for food
• Convenience stores and mini markets
• Retailing of a variety of goods in department stores where food, beverages and

            tobacco are not predominant

• Retail of fruit and vegetables – fruit shops
• Retail sale of meat and meat products including poultry
• Retail sale of fish and seafood-fish and molluscs
• Retail sale of bread, other bakery and confectionery products
• Retail sales of fuel
• Retail sale of computers, peripherals and software
• Retail sale of books
• Retail sales of newspapers and stationary
• Retail sales of toys of all kinds except video games
• Pharmacies
• The Cyprus Telecommunications Authority (CYTA)
• Internet services
• Satellite telecommunications services
• Other telecommunication services, besides CYTA

We always remain available to our clients and we are doing our best to ensure the best quality of our services.

Sincerely,

Multibusiness Ltd