VAT for foreign companies in Cyprus.
Still obligated. Foreign companies supplying taxable goods or services in Cyprus must register for VAT — regardless of turnover. No €15,600 threshold applies to non-established businesses.
The short answer
A foreign company making taxable supplies in Cyprus must register for Cyprus VAT from its first supply — the €15,600 threshold applies only to businesses established in Cyprus. Where the customer is a Cyprus VAT-registered business, the reverse charge often applies instead.
- Standard rate
- 19%
- Threshold (established businesses only)
- €15,600
- EU distance-sales threshold
- €10,000
Do you need one?
Non-EU established companies generally require a Cyprus fiscal representative to register for VAT. EU-established companies do not — but it is recommended for compliance support.
OSS and IOSS
When a non-established business supplies B2B services to a Cyprus VAT-registered customer, the reverse charge mechanism applies. This means the Cyprus customer accounts for the VAT — not the foreign supplier. The foreign supplier does not need to register in Cyprus for these transactions.
VAT obligations for non-EU businesses in Cyprus
Non-EU companies that are not established in Cyprus but make taxable supplies there must register for VAT without any turnover threshold. This catches many online businesses that sell physical goods into Cyprus, supply services to Cypriot consumers or have contracts with Cyprus businesses for work performed in Cyprus.
Since the 2021 EU VAT reform, many cross-border B2C digital service suppliers have moved to the One-Stop-Shop (OSS) mechanism — registering in one EU country and filing a single return covering all EU member states. If you are already registered for OSS in another EU state, you do not need a separate Cyprus VAT registration for those supplies.
Foreign company supplying into Cyprus?
Ask Taxerly about VAT registration, fiscal representatives, OSS/IOSS elections and reverse charge compliance.
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