VAT Tax - Cyprus ?

[ajo]

I'm thinking to incorporate company in Cyprus, I have one noob question ...


Do I need pay VAT tax ? if yes when I should pay ? How much ? I'm selling software products only online, from which countries I should add additional VAT cash to my products ? Is It necesserry to pay VAT if im selling software products globallly ?


thanks for response.

 

[JohnLocke]

You will need to charge your customers VAT i.e. 15% and then pay the charged amount to the Cypriot VAT office once every 3 months.


Actually you will have to charge only European countries for VAT.


Alternative is that you don't register your Cyprus company for VAT while the only purpose for this company will be to charge for instant a Seychelles company which don't is liable to charge VAT at the time speaking. This is a common way to avoid the VAT issue and also to be able to sell services like your 15% cheaper than the competition. The same applies for physical goods.

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[trisstann]

Admin said:
Alternative is that you don't register your Cyprus company for VAT while the only purpose for this company will be to charge for instant a Seychelles company which don't is liable to charge VAT at the time speaking. This is a common way to avoid the VAT issue and also to be able to sell services like your 15% cheaper than the competition. The same applies for physical goods.
Click to expand...

In this case the Cyprus owner must also own the Seychelles Company?


Thanks

 

[jauser]

Admin said:
You will need to charge your customers VAT i.e. 15% and then pay the charged amount to the Cypriot VAT office once every 3 months.


Actually you will have to charge only European countries for VAT.


Alternative is that you don't register your Cyprus company for VAT while the only purpose for this company will be to charge for instant a Seychelles company which don't is liable to charge VAT at the time speaking. This is a common way to avoid the VAT issue and also to be able to sell services like your 15% cheaper than the competition. The same applies for physical goods.
Click to expand...

Hello Admin

But if you want sell from Cyprus company to Seychelles company then you should prove that the goods left Cyprus to non-eu country for that Cyprus office dont request pay VAT
Or you speak about of have as director a Seychelles company in Cyprus company?

 

[cutmetwo]

You open an 4 years old thread 😀 Let's see if Admin reply 😉

 

[negon]

jauser said:
Hello Admin

But if you want sell from Cyprus company to Seychelles company then you should prove that the goods left Cyprus to non-eu country for that Cyprus office dont request pay VAT
Or you speak about of have as director a Seychelles company in Cyprus company?
Click to expand...

Actually there is no one really that is going to check this!

 

[Marco]

auric said:
Actually there is no one really that is going to check this!
Click to expand...

Even if audits are now mandatory in Cyprus?

 

[negon]

No who should do that?

 

[Marco]

auric said:
No who should do that?
Click to expand...

Well these audits will be submitted to someone won't they? Usually to the government. Or am I missing something?

 

[negon]

it's to the local tax office and they will not care at all unless it is illegal activity!