VATupdate

VAT Circular in respect of leasing of yachts

On 29 Oct 2019, the Tax Office in Cyprus issued new VAT Circular in respect of leasing of yachts. The rules and conditions communicated back in May 2019 are no longer applicable and Cypriot yacht companies can no longer be VAT registered on the basis of pre-determined fixed percentages of EU and non-EU use of their vessels. The change was trigged by the new infringement procedures initiated against Cyprus by the EU Commission after May 2019.

Source Tax Office