VAT for Online Marketplace Sellers in Cyprus

The marketplace facilitator VAT rules

Since July 2021 EU VAT rules have treated large online marketplaces as deemed suppliers for VAT purposes in many situations. When a marketplace facilitates a sale of goods from a third-party seller to an EU consumer the marketplace is treated as if it bought the goods from the seller and sold them to the consumer. The marketplace collects and remits the VAT rather than the individual seller. This applies where goods are sold to EU consumers with a consignment value not exceeding €150 or where the seller is established outside the EU.

When the marketplace handles your EU VAT

If you sell goods through Amazon, eBay or similar major EU marketplaces and your sales fall within the facilitator rules the marketplace will collect and remit EU VAT on your behalf. You should receive confirmation from the marketplace about which of your sales they are handling VAT for. For those sales you do not separately account for EU VAT — the marketplace has already dealt with it. You receive the net amount after VAT.

When you are still responsible for VAT

Marketplace facilitator rules do not cover all situations. Sales to B2B customers — where the buyer provides a VAT number — remain the seller's responsibility. Sales of goods stored in an EU warehouse by an EU-established seller above €150 remain the seller's responsibility. Direct website sales outside the marketplace are always the seller's responsibility. Domestic Cyprus sales are always the seller's responsibility regardless of the platform.

Cyprus VAT on domestic sales

Sales of goods to Cyprus customers — whether through a marketplace or your own website — are always subject to Cyprus VAT if you are VAT registered. The marketplace facilitator rules only cover certain cross-border EU sales. A Cyprus seller delivering goods to a Cyprus buyer must account for Cyprus VAT at 19% on those sales regardless of which platform they use.

OSS for marketplace sellers with direct websites

Many marketplace sellers also operate their own direct website. For EU B2C sales through the direct website the marketplace facilitator rules do not apply — you are the seller and you must handle the VAT. If cross-border EU B2C sales from your direct website exceed €10,000 per year OSS registration is required. Note that the €10,000 threshold applies to all cross-border EU B2C sales combined — if your marketplace sales are handled by the platform and not counted in your own turnover only your direct website sales count toward the threshold.