Tax Department

PURPOSE OF VIES

VIES (VAT Information Exchange System) is the system for exchanging information on VAT with other Member States (MS), within the framework of administrative cooperation between MS. The information exchanged includes details of registration in the VAT Register and data collected from VAT registered persons who carry out intra-community supplies.

OBLIGATIONS OF TRADERS UNDER VIES

The provisions of the relevant EU legislation have been incorporated into the Value Added Tax Legislation and require VAT registered persons who carry out intra-Community supplies of goods or services to submit for each month the RS (RS) until the fifteenth day (15) of the month following the month to which the RS refers. In case of non-compliance, a penalty of fifty euro (€ 50) is imposed. Failure which continues is a criminal offense punishable by a fine of up to eight hundred and fifty euro (€ 850).

According to the aforementioned legislation, the RS is submitted only by electronic means, specifically through the taxpayer web portal, TFA. Therefore, when traders have an obligation to submit the RS, they should submit the application form (TFA 01) to activate the submission of the RS. The application must be completed, signed, supported by specific documents and submitted according to the instructions mentioned in the form.

In addition, the relevant legislation requires traders to submit RS without inaccuracies. Examples of such inaccuracies are the entry of an invalid Customer's VAT Registration number, an incorrect amount, failure to enter intra-Community supplies.

The legislation allows the Cypriot trader who submitted a RS with inaccuracies, to make corrections within one month from the end of the month to which the RS refers, so that the correct information is sent to the other MS in time. If the corrections are not submitted within the deadline, a penalty of fifteen euro (€15) is imposed. Corrections are made online through the TFA.