On the 15th of February the Tax Department issued the Implementing Guidance 10/2021 clarifying that neither a Fiscal Representative nor guarantee is required for UK established persons registered with the VAT Authorities in Cyprus, as a result of the provisional application of the EU-UK Trade and Cooperation Agreement (the Protocol on Administrative Cooperation and the Fight against Fraud in the field of Value Added Tax and Mutual Assistance for the Collection of Tax-Related Claims and Duties) as of 1 January 2021.

It is also clearly stated that in the event that this Agreement is not ratified by the Partnership Council, then people based in the UK will be given time to provide information on the appointment of a VAT representative or provide a guarantee in the amount to be determined by the Cyprus VAT Authorities.

Author

Demetra Constantinou
Partner - Accounting & Vat Department
VAT@kinanis.com