Cyprus Tax News: Application of reverse charge for unprocessed and semi-processed precious metals

We would like to inform you that on 7 October 2022 a Decree was passed which provides that purchasers of certain unprocessed and semi-processed precious metals as defined in the Cyprus VAT Law, must account for VAT in Cyprus based on the reverse charge provisions.

Sellers are thus not required to charge VAT on the sale of such goods provided that both the seller and the purchaser are taxable persons for VAT purposes and the latter acquires the goods for business purposes.

Furthermore, purchasers must maintain written records of all purchases of used goods for six years, as specified by the Cyprus Organization of Marking of Articles of Precious Metals Law.

Normal VAT deduction rules will apply for such transactions.