Indirect Tax Update: Deferral of VAT payments Indirect Tax Update: Deferral of VAT payments Indirect Tax Update: Deferral of VAT payments

Date: 23 July 2021

In the context of assisting businesses facing liquidity problems due to the Covid-19 pandemic, the Ministry of Finance announced its intention of submitting a bill to the House of Representatives regarding the deferral of VAT payments.

In particular payments payable on 10/5, 10/6 and 10/7 which have been suspended for 10/8,10/9 and 10/10 respectively, will now become payable on 10/10, 10/11 and 10/12, on the condition that taxable persons comply with their other obligations.

It is pointed out that, in order for the abovementioned deferral to be applied, taxable persons should timely submit their VAT returns by 10/08/2021, 10/09/2021 and 10/10/2021 respectively.

It is also noted that the amendment will not cover taxable persons being involved in activities falling into the categories specified in the relevant announcement.

How can KPMG assist?

Should you like to further discuss the content and potential impact of the above announcement to your business, please contact one of our trusted advisors from the Indirect Tax Department at KPMG Cyprus.

KPMG’s Indirect Tax team provides advice and assistance at the Cyprus and international level. We structure our effort to dovetail with your business issues and strategy. Our focus is on supplying value adding and pragmatic advice rather than just a list of recommendations.

Our tax professionals are able to review your company’s current tax position and provide relevant advice and planning on a range of indirect taxes, including VAT, customs duties and excise taxes (such as tax audits, reorganizations and acquisitions, etc.). Furthermore, we can help your company with its administrative obligations and contacts with administrative bodies.