Key Update from Cyprus Tax Department: Circular 235 clarifies VAT treatment of vouchers – Courtesy of EY

What is the impact on your business – What are the next steps?

Further to the amending VAT legislation (effective from 1 January 2019 & covered in our June VAT Newsletter) on the VAT treatment of vouchers, the Cyprus Tax Department (CTD) has released Circular 235 to provide clarity on a number of significant aspects among others categories of vouchers affected, coupons not constituting vouchers, single and multi-purpose voucher distinctions, timing of VAT accounting and implications for intermediary sellers and purchasers.

1. Circular Overview

Applicability: On vouchers issued for the purchase of goods/services after 1 January 2019. There is express reference that amending VAT legislation is applicable even for vouchers issued up to 21 May 2019 before law enactment.

For further information click here: ey-cyprus-alert-circular-235-vat-treatment-of-vouchers-july-2019