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Reasoned opinion to Cyprus (INFR(2021)2093) for its failure to properly apply EU VAT rules for dwellings purchased or constructed in Cyprus

The reduced 5% VAT rate allowed by Cyprus on the first 200 square meters of dwellings used as a principal and permanent residence goes beyond the scope of the option to apply a reduced rate provided by Council Directive 2006/112/EC. The reasoned opinion follows the letter of formal notice sent by the Commission to Cyprus in July 2021. Cyprus now has two months to address the shortcomings identified.

Source: taxathand.com

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