The Cyprus VAT Legislation which did not provide for payment of interest on any VAT refunds, was amended in accordance with Council Directive 2008/9/EC. The amendment provides for payment of interest as from the expiry of a four month period following the submission of a refund claim.

The four month period is extended to eight months in the case a VAT investigation is carried out in relation to the refund claim. The current rate of interest is set at 5% per year.

This amendment will be in effect as from 19 February 2012 and applies for VAT periods commencing from 1 March 2013.

Our firm can assist with the preparation and submission of a VAT refund claim and assist clients in VAT investigations.