Reverse Charge On The Acquisition Of Precious Metals

Reverse Charge on the acquisition of raw and semi-finished precious metals

The Cyprus House of Representatives has recently approved the amendment of the Cyprus VAT Act (95(I)/2000), by virtue of introducing article 11στ. More precisely, as per the provisions of Law 152(I)/2022, effective as from 7/10/2022, the reverse charge mechanism shall be applicable to the acquisition of raw and semi-finished precious metals. The recipient of the precious metals is therefore obliged to self-account for and pay 19% output VAT on the value of the acquired goods, provided that the precious metals comply with the following requirements:

1. they are supplied by a taxable person,
2. they fall under the definition of raw and semi-finished precious metals; and