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EY Cyprus COVID-19 Updates

Import duties and VAT waiver on specific medical equipment

The EU Commission, through a decision published on 03 April 2020, has temporarily waived the import duties and VAT that is due on the importation from non-EU countries of specific medical equipment needed to combat the effects of COVID-19 outbreak. This decision will financially support the public health system in getting the medical equipment needed during this pandemic.

The measure is applicable for the period 30 January 2020 to 31 July 2020 with a possibility for further extension. The beneficiaries are state organizations as well as other organizations that are approved by the EU Member States.

The decision of the EU Commission has been endorsed by the Cyprus Customs Department through the Circular ‘’M’’(67) published on 09 April 2020. The list of specific medical equipment that is needed to combat the COVID-19 outbreak and which are eligible to benefit from the import duties and VAT temporary exemption can be found here.

Practical application: 

No specific procedure is provided with respect to this benefit, other than the reference to code C26 as noted in the circular of the Customs Authorities. Businesses who wish to import relevant qualifying goods can benefit from the application at the time of importation of the goods.

 

Postponement of Consumption Taxes on Energy products, Tobacco and Alcohol

The Cyprus Customs Department on 30 March 2020,  has announced a possibility of a postponement of the payment for the excise duty on energy products, tobacco and alcohol, upon request from taxable persons. According to the Notification issued (Κ.Δ.Π. 133/2014), the taxable persons may receive an extension of up to 1 month for the payment of the excise duties upon filing the relevant request to the Customs Director. In addition, in the cases of ‘’extreme need’’, the Customs authorities may grant an extension of up to 2 months.

We note that the above relief is available to persons who are ordinarily involved in the production, importation from outside the EU and intra-community acquisitions from other Member States, of energy products or/and tobacco products and/or alcohol and alcoholic drinks and (a) whose yearly turnover exceeds €3.500.000 and (b) they are paying the excise duties through the Thiseas electronic system.

This is an important opportunity for qualifying importers and producers of the above categories of products to streamline their cash-flows in these stressful times.

Our teams remain at your disposal to assist you with asserting whether you qualify for the above relief and carrying out the necessary steps to attain it.

 

For additional information with respect to this Alert, please contact the following:

 

George Liasis

Partner, Indirect Tax 

Tel: +357 22 209 759

Mob: +357 99 428 911

George.Liasis@cy.ey.com

 

Iacovos M. Kefalas

Manager, Indirect Tax 

Tel: +357 22 209 885

Mob: +357 99 476 037

Iacovos.Kefalas@cy.ey.com

 

Simos Simou

Manager, Indirect Tax 

Tel: +357 22 209 894

Mob: +357 95 561 636

Simos.Simou@cy.ey.com

 

 

 

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