30.11.2022
Since more than 270 people who took advantage of the reduced 5% VAT rate to buy their first home were found ineligible after checks carried out throughout Cyprus by the Tax Department, Konstantinos Petridis, after the meeting of the Council of Ministers, announced random checks on other categories of taxpayers and types taxes.
Since the beginning of October 2022, the Department of Taxation has been conducting a compliance campaign in Cyprus with on-site inspections of houses and apartments to ascertain whether the reduced VAT rate is applied correctly for first-time residence purposes, according to Konstantinos Petridis. According to him, the action is held in the afternoon and on weekends.
Konstantinos Petridis added that more than 1,700 spot checks were carried out in less than two months, during which, out of approximately 800 individuals identified, 275 were found to be ineligible applicants and therefore should be subject to VAT at the rate of 19%.
Mr. Petridis thanked the Tax Commissioner and department staff for their efforts and said that in 2023 and beyond, not only will special inspections continue, but on-site inspections will also begin on other categories of taxpayers and types of owners.
