As we announced before part of the measures to support the Cyprus economy from the effects of COVID-19 was the postponement of the deadline of the VAT due for certain VAT periods, as analysed below, until 10 November 2020.
On 2 November 2020, an amendment to the VAT Law was published in the Official Gazette of the Republic, allowing for the above mentioned VAT due to be settled in six equal monthly instalments without the imposition of additional tax and interest.
The instalment option is available only for the amount due on VAT return periods ending on 29 February 2020, 31 March 2020, 30 April 2020, 31 May 2020 and 30 June 2020, where an initial payment extension was granted until 10 November 2020.
No penalties and interest will apply as long as the liability for the above-mentioned VAT periods is settled in six equal instalments, paid by the 10th day of each month, starting from 10 November 2020.
There is an option for fewer but still consecutive monthly instalments provided the amount of each instalment is not less than 1/6th of the VAT liability as at 10 November 2020.