Cyprus: Guidance on VAT treatment of unredeemed expired vouchers

Guidance under Circular 3/2025 issued on April 8, 2025

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April 11, 2025

The tax department on April 8, 2025, issued Circular 3/2025 clarifying the value added tax (VAT) treatment of unredeemed expired vouchers:

  • Multi-purpose vouchers: VAT on multi-purpose vouchers is accounted for at the time of redemption. If such vouchers are not redeemed by their expiration date, they are not regarded as linked to any supply of goods or services, and no VAT is due in respect of these vouchers.
  • Single-purpose vouchers: VAT on single-purpose vouchers is accounted for at the time of issuance. If such vouchers are not redeemed by their expiration date, no VAT adjustment is required for the VAT already accounted for at issuance.

Read an April 2025 report prepared by the KPMG member firm in Cyprus

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