Paying VAT on Cyprus

[Nivis]

Hello. I have company on Cyprus. Company sells Japanese machinery shipped from Japan directly to customers

Our customers are mainly non-EU customers but some live in EU. Company gets payments from many countries to Cyprus and then pays to Japan.

Company also receive payments from UK LPs Leupay account – because some customers pay to Leupay first using bank card. Sometimes we need return fund to LPs Leupay account if customers cancel order.

Will I have to pay any vat in these 2 cases or have any tax difficulties? Please kindly advice.

 

[JohnLocke]

Generally speaking you will alsways have to charge VAT if your invoice someone from your Cyprus company! However, so far I have not seen the tax auth. in Cyprus to go after any foreigners that own a Cyprus company and which don't charge VAT, however, there may be others that have had a different experience.

 

[Nivis]

Generally speaking you will alsways have to charge VAT if your invoice someone from your Cyprus company! However, so far I have not seen the tax auth. in Cyprus to go after any foreigners that own a Cyprus company and which don't charge VAT, however, there may be others that have had a different experience.

Thank you for your reply. I see. I was thinking that the basis for VAT taxation is place where goods/services are provided. In case with my company we always ship goods to non-EU countries and they are never sold in Cyprus. So I was thinking that VAT should not be applied at all. Same takes place for exporters but in my specific case goods are never imported to EU and relevant contract may be provided.

 

[JohnLocke]

You may have registered your company non-resident then. It would have eliminated the VAT question.