ARTICLE · 13 SEPTEMBER 2022

Indirect Tax Update

KPMG in Cyprus

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On 7 July 2022, the Cyprus Tax Tribunal issued its judgment in the FIDESCORP LIMITED & FIDESCORP SERVICES LTD case (case no. 4/2021E & 5/2021E).

CyprusTax

Michael C. Grekas

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Date: 06/09/2022

On 7 July 2022, the Cyprus Tax Tribunal issued its judgment in the FIDESCORP LIMITED & FIDESCORP SERVICES LTD case (case no. 4/2021E & 5/2021E). The Tribunal ruled that the place of supply of services related with the citizenship application under the Cypriot Investment Program (CIP) is Cyprus and as such CY VAT must be imposed.

Background facts

The abovementioned companies provided services related with the citizenship application to non-taxable (physical) persons established outside the EU. Such services included the completion and submission of the citizenship application, filling forms, preparing the necessary information, forwarding them to the competent authorities of the Republic, as well as monitoring the process until citizenship was granted.

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