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Changes on the submission of VAT Returns and payment of VAT

McMillan Cyprus > СТАТЬИ > СТАТЬИ > Changes on the submission of VAT Returns and payment of VAT
Changes on the submission of VAT Returns and payment of VAT article photo

Introduction

According to the announcement issued on 16 April 2020 by the Tax Department, the VAT filing obligations of businesses that have received the relevant Notification (through their email address which is registered in the Taxisnet system), are briefly amended, (so they file monthly VAT returns instead of quarterly), as follows:

  1. Change of the specified tax period

The duration of the VAT periods of these businesses is amended, with their current tax period ending on 31 March 2020 and their subsequent tax periods lasting one (1) calendar month up to 30 June 2020.

In addition, the date of submission of each VAT return is changed from March 2020 up to June 2020 (inclusive), with a submission deadline on the 27th day of the following month.

Specifically:

(a) Businesses whose normal VAT period is January – March 2020, must submit the VAT return for the relevant quarter by 27 April 2020 and commence filing monthly VAT returns from April onwards.

(b) Businesses whose normal VAT period is February – April 2020, must submit the VAT return for the months February and March, by 27 April 2020 and commence filing monthly VAT returns from April onwards.

(c) Businesses whose normal VAT period is March – May 2020, must submit the VAT return for the month March, by 27 April 2020 and commence filing monthly VAT returns from April onwards

  1. Calculation of VAT payable

The VAT due for businesses, whose tax period has been amended, is determined as follows:

(a) Persons who fall into any of the categories mentioned in the Table below

Persons belonging to any of the categories in the Table below, must pay the full amount of tax due, i.e. they must complete each tax return as specified above and pay the VAT due.

(b) Persons who do not fall into any of the categories mentioned in the Table but have received the relevant Notification

For any other person who does not fall into the categories listed in the Table below but has received the relevant Notification, the tax payable is set at 30% of the total tax due as at the end of the relevant VAT period. The total amount of VAT due is calculated each time taking into account the balance of the remaining VAT, from previous VAT periods.

For the calculation of the VAT due, it is clarified that persons whose tax return has been expired on 29 February 2020 and which was submitted on 10 April 2020 without the payment of any payable VAT amount, for the determination of the VAT due to be paid on 27 April 2020, the VAT due relating to the tax period that has been expired on 29 February 2020 will also be taken into account.

Persons who fall into this category must complete their tax return with the relevant amounts and pay the VAT due at least as follows:

(i.) VAT payment date 27 April 2020: 30% of the VAT due for the period up to 31 March 2020 (including the VAT for the quarter ended on 29 February 2020).

(ii.) VAT payment date 27 May 2020: 30% of the VAT due for the period up to 30 April 2020 + 30% of the remaining VAT due for the period up to 31 March 2020 (including the VAT for the quarter ended on 29 February 2020).

(iii.) VAT payment date 27 June 2020: 30% of the VAT due for the period up to 31 May 2020 + 30% of the remaining VAT due for the periods up to 31 March2020 (including the VAT for the quarter ended on 29 February 2020) and 30 April 2020.

(iv.) VAT payment date 27 July 2020: 30% of the VAT due for the period up to 30 June 2020 + 30% of the remaining VAT due for the periods up to 31 March 2020 (including the VAT for the quarter ended on 29 February 2020), 30 April 2020 and 31 May 2020.

The balance of the tax due that has not been paid by the submission of the relevant tax returns must be paid at any time up to 10 November 2020.

Payment can be made electronically via Internet Banking or through commercial banks in the usual way, using the code shown in each tax return.

Lastly, it is noted that, in relation to the tax periods that follow 30 June 2020, a relevant announcement will be issued by the Tax Department.

  1. Table of Businesses which are being affected (for which the VAT due is paid immediately upon submission of the VAT return)
Economic activity code Category
35111 Electricity generators
36001 Water collection and distribution (for water supply)
47111 Grocery stores and supermarkets
47112 Mini markets / stores
47211 Retail sale of fruits and vegetables-fruit shops
47221 Retail sale of meat and meat products including poultry
47241 Retail sale of bread and other bakery products
47242 Retail sale of confectionery
47301 Retail sale of fuel
47411 Retail sale of computers, peripherals and video game software
47621 Retail sale of newspapers and stationery
61101 Cyprus Telecommunications Authority (CYTA)
61201 Internet services
61301 Satellite telecommunications services
61901 Other telecommunications services except of CYTA

 

 

 

 

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