Cyprus introduced VAT in 1992 by Law 246/90, which is based on the British VAT Legislation of 1983, adjusted to be consistent with the characteristics of the Cypriot economy. This VAT Law also contains some of the provisions of the Greek VAT Legislation of 1986.
In order to bring the Cyprus VAT Legislation in the line with the EU VAT Directive, VAT Law 95(I)/2000 was introduced along with several Regulations. Via the VAT Law 95(I)/2000 and the Regulations made thereunder, harmonization of the Cypriot VAT system with that of the EU was achieved to a great extend and at the same time the administrative and procedural framework was improved.
The Law and the Regulations made thereunder came into force on the 1st of February, 2002.
As from 1st May 2004 the VAT Legislation (Law and Regulations) were amended in order to incorporate the necessary provisions regarding intercommunity transactions (in view of Cyprus accession into the EU) as well as the applicable community acquisition in the field of VAT in force as at that date.