The European Commission has sent a reasoned opinion to Cyprus for not properly applying EU VAT rules on dwellings. Cyprus allows a reduced VAT rate of 5% on the first 200m2 of dwellings used as the principal and permanent residence without limitations. However, the wide scope of the Cypriot legislation and the lack of limitations indicate that the measure goes beyond the objective of social policy. The Commission considers that Cyprus has failed to fulfil its obligations under the VAT Directive. Cyprus now has two months to address the shortcomings identified, or the Commission may refer the case to the Court of Justice of the European Union.
Source: Orbitax
Latest Posts in "Cyprus"
- Cyprus Extends Zero VAT on Essential Goods and Cuts PV System Rate
- Cyprus Reduces VAT to 9% on Residential Photovoltaic Systems
- Cyprus Extends Zero VAT Rate on Baby Products, Hygiene Items, Fruit and Vegetables Until End-2027
- Cyprus approves temporary 0% VAT on essential goods
- Cyprus: Zero VAT Rate Applied to Essential Goods Until May 2027
