Payment of VAT in Instalments due to COVID-19

As reported before, part of the measures to support the Cyprus economy from the effects of COVID-19 was the postponement of the deadline for payment of VAT due for certain VAT periods and the settlement of the liability in instalments.

On 9 February 2021, an amendment to the VAT Law was published in the Official Gazette of the Republic, allowing for the VAT due on VAT returns ending on 31 December 2020 and 31 January 2021 to be settled in three equal monthly instalments.

No penalties and interest will apply as long as the liability for the above-mentioned VAT periods is settled in three equal instalments, paid by the 10th day of each month, starting from 10 April 2021.

The instalment option is available provided the taxpayers submit their VAT returns on time and that they are not engaged in any of the economic activities listed in the amendment (concerning businesses and traders the activity of which was not affected significantly by the pandemic).

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