Place of supply for VAT services

According to the general rule, the place of services liable to VAT supplied to other taxable persons, is where the receiver belongs. When the services are supplied to non-taxable persons, the place of performance is where the provider belongs. Taxable persons, who belong to the Republic of Cyprus and receive services from a provider outside the Republic, are also considered as the receiver. Since these services are being conducted in the Republic he/she is obliged to pay tax to the governmentof Cyprus using the reverse charge. According to the method of reverse charging, the receiver is also considered as the provider of these services to himself and he/she should therefore pay the amount of tax due; attributable to the value of the transaction, by entering the VAT amount of the output tax, into the payable VAT section. Respectively, he registers to the allowed VAT section, the amount of input tax which may be deducted; subject to the rules of Capital duty.
Regardless of the status of the recipient (taxable or non-taxable person) and of the place where he belongs, the following rules are applied regarding the transactions as referred below:
– Services related to real estate property are taxed where the real estate property is located;
– Transport services are taxed where the transfer is taking place;
– Access to cultural, artistic, athletic, and other such services are taxed where these events occur;
– Restaurant and catering services are taxed where these services are running;
– Restaurant and catering services for consumption on board ships, aircrafts or trains are taxed at the point of departure;
– Short term rental of vehicles is taxed where the means of transport is available to the client;
Furthermore, special rules are in force in relation to the place of supply of services to non-taxable persons.