Understanding the Timeline for TFA Transition and VAT Deadlines in Cyprus
The Cypriot Tax Department has announced an extension of the deadlines for submitting VAT returns and Recapitulative Statements (VIES) due to scheduled upgrades of the Tax For All (TFA) system.
The new deadline for submitting the VAT return and paying the VAT due in Cyprus for the period ending May 31, 2025, as well as for submitting the Recapitulative Statement (VIES) for June 2025, has been extended to July 29, 2025. This extension is intended to allow taxpayers to adjust to the new electronic TFA system upgrade without incurring penalties.
After July 29, 2025, submissions and payments will be considered late and subject to penalties. These penalties include a €100 fine for late VAT Return submission, 10% additional tax on the due VAT, and a €50 fine for late Recapitulative Statement (VIES) submission. It is important to note that these penalties and additional tax are imposed for late submission, not for incorrect or incomplete submissions.
The TFA system will undergo an upgrade that will cause a temporary interruption. As a result, payments of withheld tax and contributions (PAYE/DAS) will no longer be possible through the Tax Portal after June 30, 2025. Upon completion of the transfer to TFA, corresponding payments can be resumed and made through TFA using credit/debit cards, internet banking, or at bank counters.
The penalties and additional tax are financial penalties imposed by the Tax Department. It is crucial for taxpayers to meet the extended deadlines to avoid these penalties and ensure compliance with tax regulations.
This extension of the VAT and VIES deadlines is a welcome relief for taxpayers as it provides additional time to familiarise themselves with the new TFA system and avoid penalties during the transition period.
The extension of the VAT and VIES deadlines in Cyprus, intended for the period ending May 31, 2025, and June 2025 respectively, is a relief for taxpayers, allowing them to adjust to the new electronic Tax For All (TFA) system upgrade without incurring penalties. After July 29, 2025, finance-related submissions and payments through the TFA system will be subject to penalties. The EU imposes financial penalties for late submission of VAT Returns and Recapitulative Statements (VIES), as well as for late payments in Cyprus's banking sector.
