Cyprus: Reverse-charge mechanism applicable to acquisition of precious metals
Effective 7 October 2022, reverse-charge mechanism is applicable to acquisition of raw and semi-finished precious metals
Effective 7 October 2022, reverse-charge mechanism is applicable to precious metals
The reverse-charge mechanism is applicable to the acquisition of raw and semi-finished precious metals effective 7 October 2022, following approval of an amendment to the value added tax (VAT) law by the House of Representatives.
The recipient of the precious metals is therefore obligated to self-account for and pay 19% output VAT on the value of the acquired goods, provided that the precious metals:
- Are supplied by a taxable person
- Fall under the definition of “raw and semi-finished precious metals”
- Are acquired by a taxable person acting as such
Buyers of raw and semi-finished precious metals are required to maintain a separate register.
Read an October 2022 report prepared by the KPMG member firm in Cyprus
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