Cyprus: New bill on imposing 19% VAT on building land approved
The Parliament in Cyprus has recently approved a bill which will impose 19% VAT on the sale of construction land. This bill now complies with an EU condition; 10 years after the original deadline. The new legislation will come into effect as of the 2nd of January 2018.
The law should have come into force on the 1st of January 2008. Accoridngly, the delays caused the EU Commission to initiate continuous warnings to Cyprus with heavy fines.
The bill was passed with 26 MP votes from Diko, Disy, the Green Party and Solidarity. However on the oppositition, 18 MPs from Edek, Elam, Akel and one MP from both Solidarity and Diko, voted against the bill.
Averof Neophytou, Disy Leader and House Finance Committee Chairman, has stated that VAT can be reimbursed and will only be required in instances where the land is sold by a business or an individual who has registered with the VAT service.