The Cyprus Tax Department has announced an extension of the deadline for filing the VAT return and paying the tax due for the reporting period ending on 30 June 2026. All obligations can now be fulfilled up to and including 20 August.
The same extension applies to the submission of the VIES recapitulative statement for intra-European Union transactions for July 2026. The decision was made by Tax Commissioner Sotiris Markides. According to the Department, the extension is due to the summer holiday period and the need to give companies additional time to meet their tax obligations.
VAT return must be filed and tax paid by 20 August
The Tax Department draws particular attention to an important detail: the extension applies to two obligations:
- filing the VAT return;
- paying the VAT due.
In addition, the VIES recapitulative statement, which must be submitted by companies supplying goods or services between European Union countries, must be filed by 20 August. All procedures are carried out electronically through the government’s Tax For All portal, which is gradually replacing Cyprus’s previous tax services. Experts remind taxpayers that submitting a return on time without paying the tax due does not constitute full compliance with their obligations.
What penalties will apply from 21 August
Starting from 21 August 2026, all documents that have not been submitted and all unpaid amounts will be considered overdue. The following penalties will apply:
- €100 — for late filing of a VAT return;
- 10% of the outstanding amount — an additional tax charge for late payment of VAT;
- €50 — for late submission of a VIES statement.
Therefore, if a company misses both the VAT return and VIES filing deadlines, the minimum amount of fixed penalties will be €150. If VAT also remains unpaid, an additional 10% of the tax due will be charged, meaning the total cost could be significantly higher.
Why it is worth making good use of the extension
Experts advise businesses not to postpone meeting their obligations until the last day. The additional time is better used to verify accounting data and prepare the required reports. Before filing, it is recommended to:
- reconcile accounting records;
- check that VAT has been calculated correctly;
- make sure that all intra-EU transactions are correctly reflected in the VIES system;
- check for any discrepancies between tax documents and accounting records.
Errors in VIES statements are among the most common reasons for subsequent enquiries from the tax authorities and the need to submit corrected returns.
The Tax Department reminds taxpayers that 20 August 2026 is the final deadline for filing both the VAT return and the VIES statement, as well as for paying the tax due. After this date, the penalties and financial sanctions provided for by law will automatically apply.