Cyprus VAT Update: Indirect Tax Newsletter 75
On 03/11/2017, the House of Parliament voted the long awaited amendment of Cyprus VAT Legislation concerning taxation of building land, in order to align it with the provisions of EU VAT Directive. Specifically the amendments relate to (a) the imposition of 19% VAT on the sale of building land, (b) the taxation of new commercial immovable property leasing contracts and (c) the application of reverse charge on transactions relating to transfers of immovable property during the process of loan restructuring.
(a) Imposition of 19% VAT on building land
Standard VAT rate of 19% will be imposed in all of the following cases:
transfer of ownership,
transfer of indivisible land portion,
transfer of ownership via contract or sale agreement.