Factsheet for case CY-2020-14/442 – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 30 March 2020 – 10 November 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Deferral of payments or liabilities
|Author||Loucas Antoniou (INEK) and Eurofound|
|Case created||10 April 2020 (updated 06 May 2020)|
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.
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.
No information is currently available
|Does not apply to workers||
|Does not apply to citizens|
Social partners jointly
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
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 , case CY-2020-14/442 (measures in Cyprus), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.