Carbon Border Adjustment Mechanism (CBAM) Reporting Cyprus

CBAM reporting is a new obligation that will cover the period from October 1, 2023 throughout the EU! The requirement to submit quarterly reports will require the implementation of new data collection and aggregation processes, which are currently not available or collected in any Cyprus ERP system. Therefore,  organizations should act now to properly prepare for the upcoming changes.

Leadership

George Liasis

George Liasis

EY Partner Tax, EY Cyprus

Simos Simou

Simos Simou

Senior Manager | Indirect and Environmental Taxes – Tax Transformation & Controversy Leader

Cyprus Tax Facts 2023

CBAM - EY Open Day

There is less and less time to prepare for CBAM reporting. For most entrepreneurs, this is a big challenge involving the implementation of new data collection procedures and the appointment of people in the organization who will manage this process. To fully meet this challenge, it is worth  planning and implementing the implementation project in such a way as to enable timely submission of the first report, which will be due by January 31, 2024. Only such a  comprehensive approach can allow for adequate adaptation to changes and avoidance of potentially significant negative consequences.

CBAM requires the presentation of data that is not available in ERP systems, because no reporting process has ever required its collection. Emissions data that will have to be reported to the European Commission must come from non-EU installations (factories), and a major doubt is not only whether their owners will agree to share such calculations, but also whether they will be able to share them at all.

CBAM is a complete novelty, organizations most often do not even know which department or employee will organize data collection, arrange contacts with exporters, aggregate data, and then take responsibility for completing and submitting the report. Additionally, there are no system tools yet, so the report will have to be prepared in person. Therefore, in order to properly prepare for this challenge,  it is worth taking the first steps with us and planning the actions necessary to take in the 4th quarter of 2023. Taking action at a later date is a practical guarantee against reporting errors or the inability to submit a report on time at all. We invite you to arrange an individual online meeting during the next EY Open Day . On that day, our experts will be at your disposal to answer your questions. The event will take place as a free, 30-minute conversation with an EY expert on a topic of your choice.

  • How can I arrange an interview?

    Fill out the form and ask the question you want to ask us about. After receiving your application, we will contact you and set a time for the interview. 

    During the meeting, you can talk to our experts about all issues related to CBAM reporting - technical, process and business. You can consult with us any doubts regarding CBAM, including the following topics:

    • How to properly plan and efficiently carry out an implementation project (in terms of time, internal resources and the number of data sources from abroad) 
    • What tools can be used when reporting CBAM 
    • Who in the organization should be responsible for implementing and running the CBAM reporting process 
    • Where to get data to complete CBAM reports that are missing in systems today 
    • What actions should be taken in relations with foreign producers 
    • How to determine greenhouse gas emissions data and whether average data can be used 
    • What does CBAM reporting look like in practice? 
    • What consequences can we expect in the event of irregularities? 
    • Will CBAM become an additional cost and when?

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