June 24, 2025 – Nicosia
Cyprus has amended its VAT Law (Schedule 13) effective January 1, 2025, to clarify VAT treatment of virtual event participation.
Key Changes:
B2B Services: Participation in virtual events is no longer considered an “admission” under VAT. Tax is now applied based on the location of the business customer. Non-EU businesses are outside VAT scope, while EU businesses are subject to the reverse-charge mechanism (provided they are listed in VIES).
B2C Services: VAT is applied based on where the consumer resides. For EU consumers, the applicable rate is based on their country of residence. Providers may need to register under the One-Stop-Shop (OSS) system for compliance.
What Businesses Should Do:
Cypriot companies hosting or providing access to webinars or digital conferences should update invoicing, review VAT registration obligations, and ensure proper VIES reporting. Consultation with a tax advisor is highly recommended.
