The reduced 5% VAT rate allowed by Cyprus on the first 200 square meters of dwellings used as a principal and permanent residence goes beyond the scope of the option to apply a reduced rate provided by Council Directive 2006/112/EC. The reasoned opinion follows the letter of formal notice sent by the Commission to Cyprus in July 2021. Cyprus now has two months to address the shortcomings identified.
Source: taxathand.com
Latest Posts in "Cyprus"
- Cyprus Extends Reduced VAT Deadline for New Primary Residences Under Specific Conditions
- Cyprus Extends Reduced VAT Housing Application Deadline to 31 December 2026 Amid Permit Delays
- Cyprus Extends VAT and VIES Deadlines to 20 May 2026 Due to TFA System Shutdown
- Reduced 5% VAT on New Dwellings: Key Updates, Deadlines, and Transitional Provisions
- Cyprus Real Estate VAT Overhaul 2026: New Use-Based Rules and End of 5% Regime
