06.06.2023
The European Commission has decided to send a reasoned opinion to Cyprus in connection with non-compliance with EU VAT rules in relation to housing purchased or built in Cyprus. The reasoned opinion sent today is a follow-up to the letter of formal notification from the Commission to Cyprus in July 2021.
Now Cyprus has two months to eliminate the shortcomings identified in the reasoned opinion. If Cyprus does not take action within the next two months, the Commission may decide to refer the case to the Court of Justice of the European Union.
This Commission decision reflects the seriousness of the violations found and highlights the importance of complying with EU rules for all members of the European Union. Value added tax is an important source of revenue for EU Member States and its enforcement plays a key role in ensuring the fairness and efficiency of taxation within the Union.
Cyprus must take this situation seriously and take the necessary measures to remedy the violations in its national legislation. Responding to the demands of the European Commission is an important step to restore trust and maintain good relations with other EU members. Compliance with EU VAT regulations will ensure a level playing field for all participants in the European market and contribute to economic stability and prosperity.
