Cyprus Tax Refund: All You Need To Know     

Cyprus Tax Refund

Imagine the joy of discovering a hidden treasure in the heart of the Mediterranean. That’s the feeling many get when they navigate the Cyprus tax refund system successfully. Need help in Cyprus tax refund? Fret Not! We’ve got you covered!

Whether you’re a local resident or an expat soaking up the Cypriot sun, this guide will illuminate the path to claiming what’s rightfully yours. Let’s embark on a journey to uncover the secrets of securing your tax refund in Cyprus, turning complexity into clarity.

Let’s dive in!

Who Can File For A VAT Refund?

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VAT refund is available to non-EU residents. 

To be eligible for a VAT refund, the following conditions generally apply:

  • Meet the minimal eligible age of 16
  • Proof of non-EU residency for more than 365 days in the last 2 years before the date of purchase.

On top of this, there are some other conditions that must be fulfilled:

  • Meet the minimum purchase threshold for a tax-free refund which is EUR 50.
  • The goods must be exported before the end of the third month following the month in which the goods were purchased.
  • The claim must be submitted within six months after the end of the calendar year during which it is refundable, namely until 30th June. 

The claim can be filed starting the month following a calendar quarter, or where it applies, each calendar year. 

What Are The Documents Required For The VAT Refund?

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Here is a list of the documents typically required for the refund:

  • You are obliged to present a valid Tax Free form, which must be stamped by customs.
  • Receipt issued by the customs authorities in your country stating that all applicable duties and taxes have been paid.
  • Passport and travel documents to prove your residency status.
  • Stamped box C2 of the VAT refund form.

The claimant must return the Tax Free form to the shopkeeper, who shall refund the VAT once they receive it.

In the scenario where you are visiting from abroad you can get a VAT refund on goods purchased in Cyprus from shops that use the retail export scheme. 

Are There Any Penalties Associated With VAT Refund?

Avalara states that If there are any mis declarations or late filings of VAT returns, foreign companies may be subject to penalties. Late filings are subject to a charge of EUR51 per return. 

There is also a fine of EUR85 per month for not registering with the VAT authorities. 

Avalara continues to say, if VAT is reported incorrectly a penalty of an additional 10% on the output VAT due is imposed in addition to an annual interest on the output VAT. 

Penalties of up to 300% of the value of the output VAT will be charged for tax evasion. There is a six year statute of limitations for Cyprus VAT. In the case of fraud, it is extended to twelve years.

Which Expenses Are Eligible For VAT Recovery?

The following expenses are generally eligible for VAT refunds in Cyprus:

  • Goods and services purchased for business purposes, such as office supplies, equipment, and services.
  • Expenses related to attending conferences, trade shows, and other business events.
  • Expenses related to business travel, such as transportation, accommodation, and meals.
  • Expenses related to the import and export of goods, such as customs duties and brokerage fees.

The following expenses are not eligible for VAT return:

  • Accommodation expenses for business associates
  • Entertainment expenses for business associates
  • Gifts and fringe benefits for employees
  • Corporate gifts with a value exceeding EUR17

Where To Go To Get Your VAT Refund?

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To get a VAT refund in Cyprus, you may choose to visit Global Blue or Planet Tax Free offices.

These offices are located near the Passport Control booths (Immigration) at the airport. 

The Customs Office is located near the Boarding Pass Control point, close to the gate.

Additionally, you can obtain a VAT refund for merchandise carried within your checked luggage before you check-in your luggage at your airline’s counter. 

Conclusion

As we conclude our expedition through the Cyprus tax refund labyrinth, it’s clear that with the right map, even the most daunting journeys can lead to rewarding destinations. Armed with this knowledge, you’re now ready to claim your financial treasure and enjoy the fruits of your labor on this beautiful island.

May your future in Cyprus be as rich and fulfilling as the refund you’re about to claim. Here’s to smooth sailing on your financial seas!

Refund Secured!

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