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When issuing invoices for both EU and non-EU transactions, there
are specific VAT rules that your Cyprus company needs to be aware
of to ensure compliance. Here are some key points to consider:
1. **Invoicing within the EU**: When invoicing other EU
countries, you will need to follow the EU VAT rules for supplies of
goods and services between member states. This may include applying
the reverse charge mechanism, which shifts the responsibility for
accounting for VAT from the supplier to the recipient.
2. **Invoicing outside the EU**: For sales to non-EU countries,
these transactions are generally considered exports and are
zero-rated for VAT purposes. This means that no VAT is charged on
the invoice, but certain export documentation and compliance
requirements may need to be met.
3. **VAT numbers**: Ensure that you have the correct VAT numbers
for your customers within and outside the EU. VAT numbers can be
validated using VIES (VAT Information Exchange System) for EU
customers to verify their VAT registration status.
4. **VAT treatment**: Different rules apply to intra-EU
transactions (sales within the EU) and exports (sales outside the
EU). Make sure you understand the correct VAT treatment for each
type of transaction to avoid errors.
5. **Record keeping**: Maintain accurate records of all your
sales transactions, including EU and non-EU invoices, to support
your VAT returns and compliance with tax authorities.
Given the complexity of VAT regulations for cross-border
transactions, it is advisable to seek guidance from our tax and VAT
advisors or consultant with experience in international VAT
matters. They can provide tailored advice based on your
company’s specific circumstances and help ensure that you meet
all VAT obligations for EU and non-EU invoicing.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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