Cyprus VAT Record Keeping Requirements

What records must be kept for Cyprus VAT?

Every VAT-registered business in Cyprus must maintain adequate VAT records to support the figures declared on its returns. Records must be sufficient for the Tax Department to verify the output VAT declared, the input VAT claimed and the VAT treatment of all significant transactions. Adequate records are not merely keeping VAT returns — the underlying documents supporting each figure on every return must be retained.

Documents that must be retained for Cyprus VAT

• All VAT invoices issued — sales invoices with VAT details
• All VAT invoices received — purchase invoices supporting input VAT claims
• Credit notes issued and received
• Import documentation — C88 customs entry forms for imported goods
• Export documentation — export declarations, bills of lading, airway bills
• Copies of all VAT returns submitted
• VIES recapitulative statements
• Bank statements showing VAT payments made and refunds received
• VAT registration and deregistration correspondence
• Capital goods scheme adjustment records
• Partial exemption calculations and workings
• All correspondence with the Cyprus Tax Department

The 6-year retention period

VAT records must be retained for 6 years from the date of the supply or the date the document was created — whichever is later. The 6-year period aligns with the Tax Department's standard assessment window. If records are destroyed before the 6 years have elapsed and the Tax Department subsequently opens an audit for that period they can make their own assessment of the VAT liability without the benefit of your actual records. Such assessments are typically made on an unfavourable basis.

Electronic records

Electronic records are fully acceptable in Cyprus for VAT purposes provided they are stored in a format that allows the Tax Department to access, read and verify them on request. Electronic invoices, scanned copies of paper invoices and accounting system exports all qualify. The key requirements are that the records are legible, accessible and complete. Storing records on a system that becomes inaccessible — obsolete software, expired cloud subscriptions — does not meet the retention requirement even if the underlying data technically exists.

Record keeping after deregistration

Deregistering from VAT does not end your record keeping obligations. All VAT records from the period you were registered must be retained for 6 years from the deregistration date. The Tax Department can open an audit for any period within the 6-year window regardless of whether you are currently registered. Destroying records after deregistration but before the 6 years have elapsed is a compliance failure with potential penalties.