Reverse Charge on the acquisition of raw and semi-finished precious metals

The Cyprus House of Representatives has recently approved the amendment of the Cyprus VAT Act (95(I)/2000), by virtue of introducing article 11στ. More precisely, as per the provisions of Law 152(I)/2022, effective  as from 7/10/2022, the reverse charge mechanism shall be applicable to the acquisition of raw and semi-finished precious metals. The recipient of the precious metals is therefore obliged to self-account for and pay 19% output VAT on the value of the acquired goods, provided that the precious metals comply with the following requirements:

i.             they are supplied by a taxable person,

ii.            they fall under the definition of raw and semi-finished precious metals; and

iii.           they are acquired by a taxable person acting as such.

Buyers of raw and semi-finished precious metals are obliged to maintain a separate register in accordance with the relevant provisions of the Cyprus Organization for the Hallmarking of Articles of Precious Metals Law of 2009 (Ν.52/2009).

How can KPMG assist?

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

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