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Tax Department

Supply of Goods and Services - Place and Tax Point


PLACE / TAX POINT

1. PLACE OF SUPPLY

1.1 Basic Rule
I. Supply of goods
Τhe place of taxation is determined by where the goods are supplied. This not only depends on the nature of the goods supplied, but also on how the supply is made
In/outside the republic of Cyprus
Intra Community Acquisitions
a) if the goods are in the Republic on the time of the supply, the transaction shall be deemed to take place in the Republic.

b) if the goods are not in the Republic at the time of the supply, the transaction is not subject to the Cypriot VAT.

The place of intra-Community acquisition of goods is the Member State where the customer is established (Law 95 (I) / 2000 - Articles 12A, 12B, 12D, 12E)
II. Supply of Services
The place where the services are supplied can be correctly determined, once the exact nature of the service and the status of the customer are Known
B2B (Business to Business)
B2C (Business to Customer)
taxed at the Member State where the customer is established

taxed at the supplier's place of establishment.
1.2 Exceptions
Exceptions to basic rule can be found in appendix 13 of VAT Law N.95(I)/2000 

2. TAX POINT
Basic Tax Point:
The basic tax point for the supply of goods is the date the goods are removed, ie; sent to or taken by, the customer. If the goods are not removed, it is the date they are made available for use by the customer.
The basic tax point for a supply of services is the date the services are performed.

Actual tax point
In the case of both goods and services, where a VAT invoice is raised or payment is made before the basic tax point, there is an earlier actual tax point created at the time the invoice is issued or payment received, whichever occurs first.

Day Rule
There is also an actual tax point where a VAT invoice is issued within 14 days after the basic tax point. This overrides the basic tax point.

Continuous supply of services 
If services are supplied on a continuous basis and payments are received regularly or from time to time, there is a tax point every time:
  • A VAT invoice is issued
  • a payment is received, whichever happens first

Summary
The tax point may be summarised (in most circumstances) as the earliest of:
  • The date an invoice is issued
  • The date payment is received
  • The date title to goods is passed, or services are completed.

Some brief examples:
SituationTax point
VAT invoice issuedDate of invoice
VAT invoice issued 15 days or more after the date of supplyDate the supply took place
Payment or invoice issued in advance of supplyDate of payment or invoice (whichever is earlier)
Payment in advance of supply and no VAT invoice yet issuedDate payment received


Further information about the place and tax point of the supply of goods and services, can be found at::
https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/where-tax_en









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