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Limassol - Costas Tsielepis & Co Ltd released this week its latest A to Z Tax Guide on owning immovable property in Cyprus. The Tax Guide provides an analysis of what needs to be considered before acquiring a property, while owning it and when selling it. The Guide takes into consideration all relevant taxes involved with owning and disposing property in Cyprus, including income tax, capital gains tax, VAT, municipal and state taxes and stamp duties. This, and previous Tax Guides, are available on the Costas Tsielepis & Co Ltd website under E-Library/Articles

The Founding Members of the Cyprus VAT Association (CYVA). Nicosia - The Cyprus VAT Association (CYVA) was recently established with the aim of providing a unified and independent voice to all professionals and businesses in Cyprus on Value Added Tax (VAT) matters. According to the Association’s Articles of Association, its main objectives are to promote VAT tax, legal and related matters with the Government, the House of Parliament and the Tax Department for the purpose of adopting and implementing them. Also, to contribute to the proper adoption of VAT European Directives and Regulations, to help modernise and simplify the Cyprus VAT legislation, and to liaise and consult with the European Commission and other international bodies on Cyprus VAT matters. Another important purpose of the association is to educate its members, professional bodies, and state and non-governmental organisations on VAT matters and to serve and safeguard the public interest in matters of indirect taxation. Eligible for membership with the Association are businesses in Cyprus such as law, accounting and audit firms, corporate and administrative services companies, local and international business companies, as well as self-employed persons. The inaugural meeting of CYVA was held on Thursday, 21 November, 2019 in Nicosia, during which the founding members of the association, Chelco VAT Ltd, Nexia Poyiadjis, Scordis, Papapetrou & Co LLC, Andreas Konnaris LLC, GDK Optimus Audit Services Ltd, C. Efstathiou Audit Ltd and Kinanis LLC elected the Board of Directors and discussed their first steps. Kinanis LLC Partner, Demetra Constantinou, was elected Chairwoman, VAT consultant and Managing Director of Chelco VAT Ltd, Alexis Tsielepis, was elected Vice-Chairman, Chelco VAT Director, Panayiotis Panayi, as Secretary and Nexia Poyiadjis Senior Partner, Susana Poyiadjis, as Treasurer. Following her election, Constantinou said that CYVA offers all professionals and businesses the opportunity to unite and improve and modernise existing VAT laws and regulations for “the proper, effective and fair application of this tax in Cypriot society and the economy.” She added that the association would summon all its knowledge and know-how to train and educate indirect tax professionals and businesses alike on the island. In his comments at end of the association’s inaugural meeting, Tsielepis said that CYVA will act as a platform between professionals, businesses, the government, the parliament and the relevant European institutions. “So far there has been a gap. There was no open public dialogue on VAT matters and information and feedback on proposed changes to VAT legislation and on VAT practices was scarce. Professionals and businesses did not have a platform through which to get involved. CYVA will contribute towards an open and constructive dialogue, something that was missing,” he added.

Limassol – Renowned Maltese VAT expert, Matthew Zampa, joins forces with the Chelco International VAT Academy in Cyprus to deliver a unique seminar on the Value Added Tax (VAT) treatment of cryptocurrencies. Titled “Digital Assets: Decrypting VAT,” the first-of-its-kind seminar will be held in Limassol in the morning of Thursday, 14 November 2019 and is geared towards professionals in the forex industry, investment firms, financial services and financial technology companies and other CySEC regulated entities as well as accountants, lawyers and tax consultants dealing with digital currencies. The seminar will analyse how the existing VAT legislation regulates businesses operating in the blockchain space and present the current pitfalls. The audience will also be presented with the different operations that blockchain businesses might be involved in, with a view to identifying the applicable VAT treatment. Also explained will be the VAT treatment of the different types of Distributed Ledger Technology (DLT) assets, the raising of capital through initial coin offerings and security token offerings, the different types of exchanges and their VAT treatment and the VAT implications for such service providers as miners, digital wallet providers and portfolio managers. For the VAT treatment of cryptocurrencies Zampa will teach alongside Chelco International VAT Academy instructor, Panayiotis Panayi, while in the afternoon of the same day he will be joined by the Academy’s lead instructor, Alexis Tsielepis, to deliver a separate seminar on the upcoming changes to VAT in the EU and Cyprus. Interested professionals can attend either or both seminars. Tsielepis said that “this is the first time a VAT seminar of this calibre and on this particular subject is organised in Cyprus” and he labelled it as a must for professionals in the industry. He added that “Matthew Zampa is an authority on the subject matter and it is a privilege to have him share his knowledge with us. Panayiotis and I look forward to teaching alongside him.” Zampa is a Certified Public Accountant specialised in indirect taxation since 2008. He is member of the Malta Institute of Accountants, a member of the Institute’s tax committee and a member of the indirect taxation committee of the Malta Institute of Taxation. He is a regular lecturer of VAT in Malta and all over Europe. For more information on the seminar and to register, visit www.chelcoVAT.com.

Nicosia - The Institute of Chartered Accountants in England and Wales (ICAEW) is searching to find the brightest 100 Cypriot students with the aspiration to be the next generation of business leaders. Students are asked to test their skills against their peers by taking part in an online exercise. Students who score in the top 100 by the time the competition ends on Monday, 20 April 2020 will be in for a chance of winning exclusive opportunities and prizes. The overall lucky winner of the ICAEW 100 competition will receive an exclusive employability skills session with a member of the ICAEW student recruitment team and €1,000. There will also be more prizes for entries that best display certain skillsets. The competition is open to all students in Cyprus and Cypriot students studying in the UK. ICAEW was formed in 1880 and currently has 153,000 members across 148 countries. For further details and to apply, visit www.icaew100.com/cyprus

Limassol – In an effort to serve its clients, associates and vendors better and more efficiently, Costas Tsielepis & Co Ltd has changed its business hours. Effective Wednesday, 2 October 2019, its new office business hours will be as follows: Monday - Thursday: 8am-1pm and 2pm-5pm Friday: 8am-2.30pm During lunch time between 1pm and 2pm, the office will be closed to visitors.

The Cyprus Council of Ministers decided earlier this month to reduce the VAT rate on building land from 19% to 5% in the form of a refund, under certain conditions. In its meeting on 11 September 2019, the cabinet decided to lower the effective VAT rate on the acquisition of building land to 5%, so as to match the applicable VAT rate on the acquisition/construction of a qualifying primary residence in Cyprus. Both the VAT Directive, Directive 2006/112/EC and the national VAT Law, N.95(I)/2000, do not allow for a reduced rate on the supply of land, therefore this action will be effected via a refund to reduce the effective rate to 5%. From the limited information currently available the mechanics of this will be as follows: The purchase of a plot of land will continue to be subject to VAT at the standard rate of 19%. Where the plot of land will be used for the construction of a permanent residence which qualifies for the reduced rate of 5%, then the buyer will be eligible to apply for a refund of the VAT paid for the purchase of the land to reduce it to an effective rate of 5% matching the rate applicable for the construction of the primary residence. The Commissioner of Taxation issued on 20 September 2019 Notification ΚΔΠ 302/2019 whereby the relevant application for this refund process is communicated. This application must be submitted together with, or following, the application for the reduced 5% VAT rate on the construction of a primary residence. The refund will be made once the applicant has submitted evidence to the Department of Taxation, within 6 months of taking delivery of the residence, that it constitutes his/her permanent and main residence in Cyprus. More details and clarifications are expected soon on the issue but at this point it is understood that the process is open to anyone who bought a qualifying plot of land since the imposition of VAT on the sale of land, i.e. as of 2 January 2018. As per the notification communicated presently it would also appear that there are no restrictions based on the size of the land but it is expected that the effective VAT rate would match that to be approved for the construction of the house. For example, if the house is over 200sq.m. the reduced VAT rate of 5% applies only for the first 200sq.m. which results in an effective VAT rate between 5% and 19% depending on the size of the house. It is further understood that the scheme will be in line with the existing provisions and limitations applicable for the reduced rate on the acquisition/construction of a primary residence. Further guidance from the Tax Department is imminent as queries will start flowing from affected individuals.

Nicosia - The bankruptcy of Thomas Cook, which accounts for 5% to 6% of total tourist arrivals to Cyprus, left 15.000 tourists stranded on the island. The world’s oldest travel firm, Thomas Cook, collapsed today, stranding over half a million of holidaymakers around the globe and sparking the largest peacetime repatriation effort in British history, expected to be completed by 6 October. The liquidation marks the end of one of Britain’s oldest companies that started life in 1841 running local rail excursions before it survived two world wars to pioneer package holidays and mass tourism. The firm employed 22.000 people and ran hotels, resorts and airlines for 19 million people a year in 16 countries. Immediate repercussions from the collapse for Cyprus in particular includes an estimated €50m in financial losses as the company has not paid hoteliers for July and August as well as half of September. At the same time, hundreds of thousands of airline seats will be lost, which further complicates Cyprus’ connectivity problems. It remains unclear how much will be paid to hoteliers but Deputy Tourism Minister, Savvas Perdios, told reporters after chairing a crisis meeting in Nicosia today that “there is a high possibility this money will be lost”. But he said that the stay of Thomas Cook customers currently in hotels in Cyprus will be covered by insurance. Hoteliers who have bookings for the rest of the year are left counting their losses as it is difficult to fill the gap created in such a short period. Thomas Cook brought 250,000 to 300,000 tourists to Cyprus every year mainly from the United Kingdom, but also from Scandinavian countries. Perdios said that they account for about 5% to 6% of arrivals, but represent a higher share of overnight stays as Thomas Cook clients tended to come for longer holidays. Other tour operators are expected to cover much of the gap but travels experts said this could take time. Britain is Cyprus’ biggest tourism market accounting for about one third of total arrivals and the closure of Thomas Cook only adds to deep uncertainty related to Brexit.

Limassol - Tsielepis staff and guests bid farewell to the summer holidays this year with a cruise along the Limassol coastline last Friday, 13 September 2019. The evening started with a one-hour walking tour of Limassol with tour guides Demetra and Andri who offered the group an inside look into the old town. Then, as the sun set, staff boarded the catamaran Sail Away at the Old Port for a cruise of Limassol Bay which included food, an open bar and a DJ. The catamaran sailed along the coast of Limassol and then anchored for the party in full view of the city at night. Staff ate, drank and danced the night way and the party remained in full swing until the boat’s return to the harbour, three hours later. [rl_gallery id="6699"]

Brussels - The 20th International School on Indirect Taxation has extended its registration deadline until the 22nd of September. The conference will be held in Brussels, Belgium from 30 September to 4 October 2019 and is organised by the VAT Forum, an international partnership of indirect tax specialists. It will be addressed by an array of renowned European VAT experts, including Chelco VAT Ltd Managing Director, Alexis Tsielepis, who will deliver a full-day seminar on the reasoning of the EU VAT Directive as well as a series of workshops. Other seminar topics include VAT considerations in Distributed Ledger Technology, the new VAT rules for taxation of trade between Member states 2020 and an in-depth analysis of selected ECJ cases. Workshops will deal with such issues as electronic invoicing, drop shipments, supply with installation, proof of B2B supply of services, holding companies and VAT, invoices showing undue VAT, transfer pricing, logistics services, recharging expenses, the new VAT rules on vouchers and much more. The School is designed for people who already have experience in international VAT and have sufficient knowledge of their national VAT system. Its aim is to provide a forum for people who are responsible for international VAT within a company or group of companies. At the event, participants can meet and talk to VAT experts from different European countries and other people responsible for VAT in major companies. For more information and to take advantage of the registration extension, you may download the event’s brochure here.

Limassol – Managing Director of Chelco VAT, Alexis Tsielepis talks to Greek-language IN Business News media about his business and personal life, the economy, the first advice he ever gave his dad, his alarm clock, his favourite book and work-life balance… or lack of. Alexis talked to the online news site as part of a series of interviews with selected local entrepreneurs that belong to the millennial generation. https://inbusinessnews.reporter.com.cy/millennial_entrepreneurs/article/220283/a-tsielepis-to-work-life-balance-einai-thema-epilogs