The purpose of the present newsletter is to inform taxpayers of the recent amendments to the Cyprus VAT Act in relation to the procedure that they will have to follow when submitting an appeal against an assessment issued by the Tax Department.
In accordance with the legislation that was in force until recently, taxable persons, whether legal entities and/or physical persons, had the right to submit written objection against VAT assessments resulting from VAT audits performed by the Tax Authorities to their books and records to the:
Prior to the submission of a VAT appeal to the Minister of Finance in relation to VAT matters listed in Article 52 (amended by article 52A) of the Cyprus VAT Act, the taxpayer should have:
a) Submitted all VAT returns· and
b) Paid the total of the disputed VAT amount.
Amendments to Articles 50 and 51A of the Cyprus VAT Act
According to the recent amendments, the right to appeal to the Minister of Finance is replaced with the right to submit hierarchical appeal to the Tax Tribunal (eforiako symvoulio). Also, there is a replacement of the phrase «High Court» to that of «Administrative Court» since the role of the first party is now assigned to the Administrative Court.
Replacement of Article 52 of the Cyprus VAT Act
Taxable persons, whether legal entities and / or physical persons, before submitting an appeal to the Administrative Court can submit a hierarchical appeal to the Tax Tribunal, within 45 days from the date of notification of the Commissioner's decision to the applicant, for the following matters:
Addition of Article 52A of the Cyprus VAT Act
Taxable persons, whether legal entities and / or individuals have the right to submit objections to the Commissioner of Taxation, but not to the Tax Tribunal, in relation to VAT matters included in the amended Article 52 of the Cyprus VAT Act, such as the registration and deregistration of a taxable person for VAT purposes, any request for claiming input VAT as per Article 12D etc.
Replacement of Article 53 of the Cyprus VAT Act
Preconditions for appealing to the Tax Tribunal:
Addition of Article 54A of the Cyprus VAT Act
The Tax Tribunal has the right within 12 months of the submission of an appeal to:
It should be noted that the taxpayer reserves the right to submit an appeal to the Administrative Court following the final decision of the Tax Tribunal but not the Commissioner of Taxation.
The amendments are applicable since 7 July 2017.