M. Target Group would like to inform you that on 11 November 2022, Decree K.Δ.Π. 423/2022 (available in Greek only) was issued in the Cypriot official gazette, amending the eighth schedule of the VAT law in relation to the supply of Immovable Property.
The amendment introduces new criteria to determine whether the supply of a building, and the land transferred therewith, is considered as taxable or exempt.
In particular, paragraphs 1(b)(i) and 1(b)(ii) of the eighth schedule are amended with the replacement of the phrase “before the first occupation“ with the following:
“before the first supply within a period of five (5) years from the date of completion and any subsequent supplies within the period of five (5) years provided that no actual use by unrelated person has been occurred for at least of a period of twenty four (24) months”.
The amendment has immediate effect as from the date of its publication in the official gazette, yet further information is expected from the VAT authorities to clarify any ambiguities.
As always, M. Target Group specialists remain at your disposal should you require any further information, clarification or professional assistance with any tax matter.