Cyprus extends application of the domestic reverse charge for VAT

Cyprus is to extend the application of the domestic reverse charge to mobile phones, CPU’s, games consoles, laptops and similar products. This will come into effect from 1 October 2020.

Reverse charge to block missing trader fraud

The measure obliges resident or non-resident providers of such goods should not charge Value Added Tax when selling to VAT registered customers within Cyprus. Instead, the customer records the sale and input VAT on their next VAT return and so has to make no VAT cash payment. The aim is reduce the opportunity for VAT fraud. Laptops and mobile phones, as small and lightweight goods, have been prone to extensive VAT missing trader fraud in the past ten plus years.

Cyprus already operates the domestic reverse charge on:

• Scrap and waste materials since October 2014
• Construction since March 2012

Calculate or verify Cyprus or any country’s reverse VAT calculations on individual or batch transactions with our Advisor and Auditor  services.

EU VAT General and Domestic Reverse Charge rule by country