Cyprus Providing VAT Payment Extensions, VAT Rate Reductions, and Return Extensions in Response to COVID-19

The Cyprus Ministry of Finance has announced a number of measures that are being taken to address the COVID-19 pandemic. Key measures include:

• a two-month suspension of VAT payment obligations for businesses with turnover not exceeding EUR 1 million in 2019 and businesses whose turnover has been reduced by more than 25%, with arrangements for VAT due to be paid gradually;
• a temporary reduction of the standard VAT rate from 19% to 17% for two months and temporary reduction of the reduced VAT…