In 2026, VAT compliance in Cyprus has shifted from “periodic reporting” to “real-time digital oversight.” With the full integration of the Tax For All (TFA) portal, the Cyprus Tax Department now has instant visibility into your cross-border transactions.
CX Financia acts as your digital tax partner, ensuring every VAT Return, VIES Recapitulative Statement, and Intrastat Declaration is filed with surgical precision. As an ICPAC regulated firm, we protect your business from the aggressive new penalty regime and the complexities of the 2026 Tax Reform.
Automate Your VAT Compliance
The High Cost of Non-Compliance in 2026
The transition to the TFA system has automated the imposition of fines. Missing a deadline by even 24 hours now triggers immediate administrative actions:
VAT Return Fines
An automatic €100 penalty is imposed for every late submission.
Late Payment Penalties
A 10% surcharge is applied to the unpaid tax amount, plus an annual interest rate (currently 5.5% for 2025/2026) calculated daily.
VIES Penalties
Failure to submit a VIES return on time results in a €51 fine per statement, while continuous non-compliance is now a criminal offense punishable by fines up to €850.
Intrastat Triggers
Many businesses overlook the 2026 Intrastat Arrival threshold of €380,000. Crossing this without filing triggers immediate statistical department queries and potential sanctions.
Our VAT Compliance & Advisory Services
We provide a managed compliance cycle that covers all European and local reporting obligations.
1. Quarterly & Monthly VAT Returns (TFA)
We handle the preparation and electronic submission of your Form T.D. 1004 via the TFA portal. Our process includes a full reconciliation of your sales ledgers against your bank statements to ensure “Audit-Ready” filings.
2. VIES (EC Sales Lists) & B2B Reporting
If you provide goods or services to VAT-registered entities in other EU Member States, we manage your monthly VIES declarations. We verify the VAT IDs of your counterparties to ensure your right to zero-rate the supply is legally protected.
3. Intrastat Arrivals & Dispatches (2026 Updates)
We monitor your trade volume against the 2026 thresholds:
- Intra-EU Arrivals: Threshold increased to €380,000.
- Intra-EU Dispatches: Threshold remains at €75,000.
4. OSS & IOSS Filing for E-Commerce
For digital entrepreneurs and cross-border retailers, we manage the One-Stop Shop (OSS) returns, allowing you to settle VAT for all 27 EU countries through a single filing in Cyprus.
Timely TAXISnet Submissions: Monthly Intrastat declarations submitted by the 10th via TAXISnet (Cyprus tax authority system). Nil declarations required even for months with no trade activity to avoid €15 penalties and potential escalation fines.
Our team verifies commodity codes, country classifications, and statistical values to prevent non-compliance penalties (€15 per late/incorrect return; up to €2,562 for persistent violations) and maintain clean trade records with EU partners.
Local Expertise, Global Standards
Our team provides strategic “Place of Supply” audits to determine where your tax liability truly lies—preventing double taxation or incorrect filings. We represent clients across the Republic’s major business hubs:
- Limassol: Specializing in complex VAT for international trading and maritime services.
- Nicosia: Focused on holding company management services and professional service firms.
- Larnaca & Paphos: Expertise in VAT for real estate developments and EU-wide logistics.
2026 Compliance Deadlines at a Glance
Avoid Penalties
Frequently Asked Questions (FAQ)
Can I correct a mistake on a submitted VIES return?
Yes. Corrections are submitted via the TFA portal. If the correction is submitted more than 1 month after the original deadline, the Tax Department imposes a statutory penalty of €15 per return.
What is the "4-month rule" regarding VAT?
While bookkeeping must be updated every 4 months, VAT returns remain quarterly. However, if your books aren’t updated, your VAT return will be based on incomplete data, leading to “Reconstruction Penalties” during a Tax Audit.
Does CX Financia provide help with VAT Refunds?
Absolutely. We manage the entire refund application process through the TFA portal, including the preparation of the necessary documentation to justify the credit balance to the Tax Commissioner.