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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure CY-2020-14/442 – measures in Cyprus

Suspension of value added tax (VAT) payment

Αναστολή καταβολής Φόρου Προστιθέμενης Αξίας (ΦΠΑ)

Country Cyprus , applies nationwide
Time period Temporary, 30 March 2020 – 10 November 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Deferral of payments or liabilities
Author Loucas Antoniou (INEK) and Eurofound
Measure added 10 April 2020 (updated 06 May 2020)

Background information

The measure for the suspension of the payment of VAT is provided in the 'Amendment Value Added Tax (VAT) Law' N. 24(1) 2020.

The measure is taken by the government within a bundle of other measures to support businesses to stay afloat during the crisis.

The measure is applied to all taxable persons that are registered in the VAT Register but excludes specific economic activities that have not been affected by the coronovirus crisis.

Content of measure

According to the Law, registered persons in the VAT Register, whose their defined tax period payments are due in 29 February 2020, 31 March 2020 and 30 April 2020 are entitled with the right to suspend their payments by 10 November 2020.

The suspension of VAT payments is not implemented, however, to taxable persons in certain economic activities that have not been affected by the crisis. Among these group of economic activities are: production and provision of electricity, supermarkets, mini-markets and kiosks, pharmacies, telecommunications and food, groceries, fish, meet, pastry, bakery and pasty retail markets.

The eligible taxable persons are exempt for extra taxes and interest taken that they submit their application in time and pay their taxes by 10 November 2020.

Use of measure

No information is currently available

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Larger corporations
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Trade unions
Employers' organisations
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • N/A
  • Main level of involvement: Unknown



Views and reactions

The government has consulted social partners - trade unions, employers' organizations and political parties - and the measure was approved on an agreed base.



Eurofound (2020), Suspension of value added tax (VAT) payment , measure CY-2020-14/442 (measures in Cyprus), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.