VAT Registration
Last Updated on Saturday, 19 September 2009 18:04
Registration can be either voluntary or mandatory. Mandatory registration is triggered when the value of supplies of goods and services (taxable turnover) for any twelve month period exceeds the threshold limit of €15,377, or if there is an expectation that during the next 30 days the value of supplies of goods and services will exceed the threshold limit of €15,377. This test is applied at the end of each month.
Voluntary registration (even where the taxable turnover does not reach the threshold) is permitted. Advantages of voluntary registration include the ability to recover VAT input tax. A general disadvantage of voluntary registration is the additional costs incurred for submitting VAT returns and the additional cost of service to customers, which will now include a VAT charge.
To determine the taxable turnover, all taxable supplies are included, including zero rated supplies but excluding exempt supplies. The amount is the VAT exclusive amount.
A person must register within 30 days after the end of the month in which the taxable turnover exceeds the threshold limit. The registration is made at the VAT Office on Form 101.
Individual documents
- Identification card or passport of individual
- Proof of registration of business name (if trading under other than own Christian name)
Company documents
Originals or certified copies of
- Certificate of Registration
- Certificate of Shareholders
- Certificate of Directors & Secretary
- Certificate of Registered office
Group Registrations
Group registration is available in Cyprus, the effect of group registration is
- intercompany goods and services supplied are outside the scope of VAT
- only the representative member of the group is responsible for the submission and payment of VAT, reducing administration costs.
Partnership Registrations
Partnership registration is done in the name of the Partnership, ensuring that a change in the partners (signaling the disbanding and reforming of the partnership) ensures the continuation of registration.
De-registration
De-registration can be either voluntary or mandatory. Mandatory de-registration occurs when a trader ceases to make taxable supplies or where an intending trader ceases to have the intention to trade. The Commissioner of VAT must be notified within 60 days of ceasing to make supplies, or ceasing to have the intention to make supplies. The trader is de-registered from either the date of cessation or at another agreed date.
Voluntary de-registration occurs when the anticipated taxable turnover for the coming year is not expected to exceed the threshold. Again, the Commissioner of VAT must be notified of the de-registration and must be satisfied that the expected value of the supplies for the next year will not exceed the limit. The trader is de-registered from either the date of cessation or at another agreed date.
