Obligation of legal entities to submit electronically their VAT return forms via the Taxisnet system.
Based on the current policy of the Cyprus Tax Department, taxable persons, whether legal entitles and/or individuals, are not obligated to submit their VAT return forms electronically. However, this current policy is imminent to soon change as the Tax Department has already submitted for discussion and approval a bill of law before the House of Representatives, proposing the mandatory electronic submission of VAT returns via the Taxisnet system in relation to legal entities (companies, partnerships, associations, foundations, etc).
In discussing the Tax Department’s proposed Bill of Law, the Parliament requested from the Tax Commissioner to also seriously consider, in addition to the electronic submission of quarterly VAT returns, the electronic submission of 4B forms and the introduction of an electronic payment system thus giving the option to taxpayers to settle their VAT obligations electronically.
For the timely compliance of all VAT registered legal entities with the above described filing obligation, the Tax Department has published a relevant announcement, the exact content of which can be found in the alert.
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