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Confused about V.A.T. payable in Cyprus
http://www.paphospeople.com/ppforum/viewtopic.php?f=2&t=30538
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Author:  Topgun [ Tue Jan 05, 2016 9:44 am ]
Post subject:  Confused about V.A.T. payable in Cyprus

I am curious and hoping someone will provide clarification as to the level of V.A.T. applicable for company services provided in Cyprus.

At first glance at the following information it would seem that the 'standard 19%' we the consumers are generally charged, may or may not be the required tax paid by the company;

Quote:
Cyprus VAT rates

Whilst Cyprus follows the EU rules on VAT compliance, it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Cyprus must charge the appropriate VAT rate, and collect the tax for onward payment to the Cyprus tax authorities through a VAT filling see Cyprus VAT returns briefing.

The current rates are:
EU country Cyprus Country code CY
Standard rate Reduced rates Which goods or services?


19% All other taxable goods and services.

5% Basic foodstuffs; water supplies; pharmaceutical products; medical equipment for disabled persons; childrens car seats; some public transport; books; newspapers and periodicals; admission to cultural events and amusement parks; writers and composers; renovation and repair of private dwellings; some agricultural supplies; admission to sports events; domestic waste collection; hairdressing.

9% Some passenger transport; hotel accomodation, restaurants.


My guess is we, the consumers, are being ripped-off!

Author:  Sergio [ Tue Jan 05, 2016 9:52 am ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

think of the money as payroll for govt jobs, parliament, military, etc - they will not survive if it's not the VAT paid by us

Author:  geoffreys [ Tue Jan 05, 2016 12:59 pm ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

Sergio wrote:
think of the money as payroll for govt jobs, parliament, military, etc - they will not survive if it's not the VAT paid by us


Phew! that's OK then.
Geoff.

Author:  Yakflyer [ Tue Jan 05, 2016 4:25 pm ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

Most VAT-registered companies in Cyprus charge their customers 19% VAT and that is what they are obliged to pay the government on a quarterly basis. No ifs or buts, it's 19%.

The exemptions are as shown in your post. Those exempted companies account to the government for the lower rates shown - not 19%. So if you pay €10 for a haircut the hardrdresser gets to keep €9.52 for himself and he pays 48c VAT (5% of €9.52) to the government.

At 19% Standard rate we actually get off quite lightly. Most European states pay more than we do, in some cases quite a bit more:

Image

Author:  Sergio [ Tue Jan 05, 2016 4:33 pm ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

geoffreys wrote:
Sergio wrote:
think of the money as payroll for govt jobs, parliament, military, etc - they will not survive if it's not the VAT paid by us


Phew! that's OK then.
Geoff.

:D

Author:  Topgun [ Thu Jan 07, 2016 10:48 am ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

Being of a cynical nature, I was wondering if some businesses for example, some restaurants were charging 19% & then only paying 9%, thereby further enhancing the profit they make?

Author:  Yakflyer [ Thu Jan 07, 2016 4:32 pm ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

If they were to charge 19% VAT their end price to the customer would simply be that much higher than competitors. A wholly pointless exercise if they were to lose out. Of course restaurants work on different margins and that's not to say that one restuaranteur may not look for a bigger margin to cover a higher cost base, or excellence of food or service. VAT wouldn't need to come into it, the restauranteur could simply just charge more. However, I suspect that in these difficult times, restaurant menus are very price-sensitive and few would dare to step out of line too far.

Author:  Neil [ Thu Jan 07, 2016 10:32 pm ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

Topgun wrote:
Being of a cynical nature, I was wondering if some businesses for example, some restaurants were charging 19% & then only paying 9%, thereby further enhancing the profit they make?


Everyone should have a pre-programed till , it is the law ,
plus they must have the menu displayed outside stating the cost includes VAT ..

Author:  Topgun [ Fri Jan 08, 2016 10:24 am ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

Quote:
Everyone should have a pre-programed till , it is the law ,
plus they must have the menu displayed outside stating the cost includes VAT ..


Thanks for enlightening us Neil.

I think the two key words in your statement Neil are 'should' & 'must', this is Cyprus after all! ;)

I could name a particular restaurant that does not display drinks prices inside, outside, or on the menu - so how can this be legal?

Author:  Neil [ Fri Jan 08, 2016 11:52 am ]
Post subject:  Re: Confused about V.A.T. payable in Cyprus

Topgun wrote:
Quote:
Everyone should have a pre-programed till , it is the law ,
plus they must have the menu displayed outside stating the cost includes VAT ..


Thanks for enlightening us Neil.

I think the two key words in your statement Neil are 'should' & 'must', this is Cyprus after all! ;)

I could name a particular restaurant that does not display drinks prices inside, outside, or on the menu - so how can this be legal?

its not ...
also every year , we must submit our menu, in english and in greek to the CTO for approval ,,

and who is to say that they are ringing everything through the till ?? ..

the VAT people have been known to attend bars/ restaurants , order a drink , then when you dont give them a receipt
with there change , they identify themselves and go through everything (which they can)
they can Z your till anytime they like ..

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