Further Modernization Of Tax Procedures In Cyprus

Introduction

In 2014, the Inland Revenue department, which dealt with direct taxation, and the VAT department were merged to create a single Tax Department. One of the principal objectives of the unified body has been to modernize and streamline tax administration, for example by encouraging electronic filing of returns and settlement of tax liabilities by electronic means. Considerable progress has been made: all major categories of direct taxes can now be paid via online banking, and the queues to submit returns and pay taxes that used to be commonplace in tax offices towards the end of July and December have almost disappeared. In the spring of 2017 a system for electronic payment of VAT liabilities became operational, and electronic submission of VAT returns became mandatory. Two further steps in the modernization process took place in July 2017 with the enactment of laws making significant alterations to the VAT appeal procedure, and making electronic filing of