As of the 2nd November 2020, the pertinent Cyprus VAT Law has been amended to provide for an allowance the VAT- Registered persons to settle the VAT that is due on 10th November 2020 in six (6) equal monthly instalments, without the imposition of additional tax, penalties and interest.
The option to pay by installments is available only for the VAT liability of the quarterly or monthly VAT return periods ending on 29 February 2020, 31 March 2020, 30 April 2020, 31 May 2020 and 30 June 2020, where an initial payment extension was granted until 10 November 2020.
In addition, the non-imposition of additional tax and interest will apply only if the total VAT liability for the above-mentioned VAT periods is settled to the Cyprus Tax Authorities in six (6) equal instalments that are paid by the 10th day of each month.
Thus, the first instalment must be made by 10 November 2020 and the final instalment by 10 April 2021. Therefore, each instalment should be made by 10/11/2020, 10/12/2020, 10/01/2021, 10/02/2021, 10/03/2021 and 10/04/2021 the latest.
An option is also available for fewer, consecutive monthly instalments provided the amount of each instalment is not less than 1/6th of the VAT liability as at 10th November 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.