One of the main areas businesses across the world are urgently addressing in these unprecedented circumstances is their cash flow management. Businesses in Cyprus are no exception.
In this respect, a reminder of the applicable in Cyprus VAT provisions on bad debt relief could be very useful.
Even though the conditions under which the bad debt relief applies have not been eased in response to the current crisis, which would be a welcome measure, some businesses might find that VAT previously paid by them on goods or services they have supplied could be claimed back subject to the applicable conditions and timeframes.
To check if they are eligible for bad debt relief, VAT registered businesses in Cyprus should review all their outstanding receivables in order to confirm if the conditions of the bad debt relief are met.
The guide below aims to assist VAT registered businesses in Cyprus in evaluating the relevant conditions.
Source Silviya Ivanova
