Cyprus, as an EU member state, applies the EU VAT framework with national specifics. This guide covers: when Cyprus VAT registration is mandatory (€15.6k threshold for residents, immediate for cross-border), how OSS simplifies B2C EU sales, IOSS for low-value imports, reverse charge rules for B2B services, and VIES validation for intra-EU supplies.
You sell digital subscriptions to consumers in 15 EU countries — register in each?
No — use OSS (One-Stop-Shop) in Cyprus. Quarterly OSS return covers all EU B2C digital sales. Cyprus tax department distributes VAT to destination countries. Threshold: €10k/year across all EU before destination VAT applies.
B2B service to a French VAT-registered customer — Cyprus VAT or French?
B2B services to EU VAT-registered customer = reverse charge (zero Cyprus VAT). Invoice notes "Reverse charge — Article 196 EU VAT Directive". Customer self-accounts for French VAT. Sales reported in VIES quarterly recap.
Selling to a UK customer post-Brexit — what changed?
UK is no longer EU. B2C: UK VAT applies if ≥£70k UK sales (UK VAT MOSS abolished, register in UK). B2B: UK reverse charge (no Cyprus VAT). Customs declarations now needed for goods.
The 4b2b ecosystem covers every topic described here.
