23.07.21
Announcement by the Ministry of Finance for further suspension of VAT payments

Announcement by the Ministry of Finance for further suspension of VAT payments

As a part of the measures to support companies facing liquidity problems due to the COVID-19 pandemic, the Ministry of Finance, further to its announcement made on the 6th of May 2021 regarding the deferment of the VAT payments due on 10/5/2021, 10/06/2021 and 10/07/2021 by 3 months (10/08/2021, 10/09/2021 and 10/10/2021), it proceeded with a second announcement on the 22nd of July 2021 by which it offers a further deferment for the settlement of the vat dues for the same VAT quarters by another 2 months as follows:


VAT Quarter

Payment due

1st extention

2nd extention

01/01/2021 - 31/03/2021

10/05/2021

10/08/2021

10/10/2021

01/02/2021 - 30/04/2021

10/06/2021

10/09/2021

10/11/2021

01/03/2021 - 31/05/2021

10/07/2021

10/10/2021

10/12/2021

It should be noted that in order for the above regulation to apply, each taxable person must be in compliance with the submission of their subsequent tax return, i.e. by 10/08/2021, 10/09/2021 and 10/10/2021, respectively.
It is further emphasized that the payments of the subsequent VAT Quarters should be paid on the specified dates even if they coincide with the dates of this extension.
The intention of the Ministry of Finance is to submit a bill to the House of Representatives, which will include the above regulations, as well as arrangements for not imposing any financial burden or interest on taxable persons who will benefit from the above measure.
Please note that the said regulation will not cover the economic activities presented below:


1. Supermarkets and grocery stores 47.11.1

2. Mines and Quarries 05. to 09.

3. Forestry and Logging 02.

4. Satellite and other telecommunications services 61.

5. Electricity generation 35.

6. Production of chemicals, products, metals and other non-metallic products 20,23,25.

7. Manufacture of medicinal products and pharmaceutical preparations 21.

8. Manufacture of electrical equipment, machinery and electronic equipment for medical and therapeutic use 27,28,26.6

9. Repair and installation of machinery and equipment 33.

10. Water supply, wastewater treatment, waste management and related 36,37,38,39.

11. Financial and insurance activities, including Licensed Banking Institutions and related activities 64,65,66.

12. Doctors 86.

13. Construction sector and construction related companies 41,42,43.

14. Wholesale trade related to the construction sector 46.63,46.73,46.74

15. Wholesale of motor vehicles and motorcycles, as well as maintenance, manufacture and repair of motor vehicles and related activities and related businesses 45.

16. Commercial agents 46.11 to 46.19

17. Wholesale of tobacco, perfumes and cosmetics, furniture, carpets, electronic & telecommunications equipment & accessories, electrical household appliances, radio & television, PCs, computer peripherals and software, porcelain, glassware and cleaning materials and the like companies 46.21,46.35,46.43,46.44,46.45,46.47,46.51,46.52

18. Non-specialized wholesale trade in food, beverages and tobacco 46.39

19. Programming, computer and related activities 62.

20. Hospital Activities 86.1

21. Nursing Homes 87.30.1

22. Pharmacies 47.73.1

23. Trade in medical, orthopedic and pharmaceutical products 47.74

24. Lotteries and newsagents 47.99.5,47.99.6

25. Land and water transport, storage, postal activities 49,50,52,53.

26. Private health companies and clinical laboratories 86.10.2,86.21.2,86.22.1,86.23.2,86.90.1

27. Home help activities and household activities as employers of domestic staff 87,97.

28. Film production and related activities 59.

29. Funeral home activities and related activities 96.03

30. Veterinary Activities 75.

31. Head office activities, management consulting and related activities 70.

32. Legal, accounting and architectural activities 69.71.

33. Laundries 96.01

34. Gas Stations 47.3

35. Real estate services 68.

36. Protection and research activities as well as service activities in buildings and outdoors 80,81.

37. Rental and leasing of personal or household goods, machinery and equipment 77.

 

Please do not hesitate to contact our VAT Department for further information and clarifications.

Contact:

VAT@kinanis.com