I make purchases from suppliers outside Cyprus. When can I be invoiced without VAT?

The usual is for the supplier outside Cyprus to charge the VAT of its country, i.e. if from Greece the supplier charges 24% VAT.

VERY IMPORTANT to know is that the non-Cyprus VAT paid cannot be claimed in the VAT declaration. The non-Cyprus VAT is considered part of the expense and added to the work expenses.

The cases where the supplier outside Cyprus can invoice the buyer in Cyprus without VAT, are the following:

1. When the supplier is from an EU country and the buyer in Cyprus has a VAT number. These invoices must include the buyer's VAT number in Cyprus (there must be an entente between the buyer and the supplier).

2. When the supplier is from a country outside the EU, the item being invoiced is only service (not products) and the buyer in Cyprus can prove that is running a business activity that makes sales within Cyprus. (Again there must be an entente between buyer-supplier.)

VAT-free transactions/purchases are declared in the quarterly VAT submission using the reverse charging mechanism and separating into products or services.

Note: There are rare cases of purchasing products outside the EU where, although the VAT of the supplier's country has already been charged, the customs office in Cyprus imposes an additional Cypriot VAT.

The Logistaras service automatically generates the correct VAT declaration to be submitted, based on the selections when the transaction is recorded: if within the EU or outside the EU, if products or services, etc.