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Cyprus Provides VAT Installment Payment Relief for COVID-19 — Orbitax Tax News & Alerts

The Cyprus Tax Department has published a notice dated 9 February 2021, which provides that for the VAT periods ending 31 December 2020 and 31 January 2021, taxpayers are allowed to pay the VAT due in three installments, unless a taxpayer's economic activity is included in a list attached to the notice. The option to pay in installments is provided in light of the COVID-19 pandemic, with the three installment payments due, for both periods, by 10 April 2021, 10 May 2021, and 10 June 2021, without surcharge or interest. A single payment for these periods may also be made by 10 April 2021. Returns for the periods must still be submitted by the normal deadlines and if payment is not made by the set dates, a 10% surcharge and interest will apply.

Note that the Tax Department has also published a second notice that amends the initial notice in regard to an economic activity code that was inadvertently listed as an excluded activity.