Cyprus Compliance

Volk Accountant is designed to work in line with the practical requirements of doing business in Cyprus. The following sections describe how the application supports the Cypriot value-added tax system and the associated obligations, so that you can prepare your records and filings with confidence.

Support for the Cypriot VAT system

The application supports the Cypriot value-added tax system, including the preparation of information for the VAT-4 return. It helps you record transactions with the relevant VAT treatment and to compile the figures you need for your periodic filings.

By structuring your data around the categories used in Cyprus, Volk Accountant makes it easier to keep your VAT records complete and consistent throughout the reporting period.

Reverse-charge mechanism

Volk Accountant accommodates the reverse-charge mechanism, under which the recipient rather than the supplier accounts for the VAT due on certain transactions. The application lets you flag and handle such transactions correctly within your records.

This is particularly relevant for cross-border supplies and for specific categories of goods and services where the reverse charge applies under Cypriot and EU rules.

VIES checking for intra-Community supplies

For intra-Community supplies, the application supports checking against the VAT Information Exchange System (VIES). This allows you to verify the VAT identification numbers of your counterparties within the European Union.

Validating VAT numbers is an important step in applying the correct VAT treatment to intra-Community transactions and in supporting the corresponding entries in your records.

Receipt and document output in two languages

Receipts and documents can be produced in two languages at once: one for the recipient and one in English for the authorities. This is helpful in the international environment in which many businesses in Cyprus operate, where documents may need to be understood by parties in different language regions.

The two-language output makes your invoices and related documents readable for the recipient and for the authorities without the need for separate versions. English and German are available today; Greek and Russian are announced.

Alignment with the Cypriot tax administration

The functionality of Volk Accountant is oriented towards the requirements of the Cypriot tax administration. We aim to keep the application aligned with the way information is expected to be recorded and reported.

This alignment is intended to make it easier for you to prepare filings that correspond to the applicable requirements as they are administered in Cyprus.

Important note on certification and responsibility

There is no state certification procedure for accounting software in Cyprus. We therefore do not claim any official approval, certification or endorsement for Volk Accountant, and any statement to that effect should not be inferred from the support features described above.

Responsibility for the timely and accurate submission of filings remains with the customer or their tax advisor. Volk Accountant is a tool to support your record-keeping and preparation; it does not replace the professional judgement and obligations of the customer or their advisor.

Looking for the rules themselves rather than the product? Our article explains how the VIES return works in Cyprus: who has to file, the monthly deadline, nil statements and the penalties for filing late.