Should you deregister for VAT?
If your taxable supplies for the next 12 months are expected to be €13,668.81 or less, deregistration may be appropriate. Not there yet? See our Cyprus VAT registration guide for the full registration process.
The short answer
You can apply to deregister when your taxable supplies for the next 12 months are expected to be €13,668.81 or less, which is below the €15,600 registration threshold. If your taxable activity stops altogether, you must tell the Tax Department within 60 days. Before you deregister, check the VAT on goods and assets you still hold: it may be due when your registration ends.
- Deregistration threshold
- €13,668.81
- Notify cessation within
- 60 days
- Registration threshold
- €15,600
- Keep VAT records for
- 6 years
Deregistration Key Facts
Assets at Deregistration — Liability Estimator
If you claimed input VAT on assets you still hold, you may owe output VAT on their current market value at the date of deregistration — even if you don't sell them.
Mandatory vs voluntary deregistration
Mandatory
You must notify the Tax Department within 60 days if you stop making taxable supplies, for example when you cease trading. Late notice costs €85.
Voluntary
You can apply to deregister while still trading if your taxable supplies over the next 12 months are expected to be no more than €13,668.81.
The Deregistration Process
Confirm eligibility
Check 12-month rolling turnover
Identify assets with claimed input VAT
Stock, equipment, property
Calculate output VAT due on those assets
At current market value
Submit form VAT 204 to the Tax Department
File your final VAT return
Covers period up to deregistration date
Pay any VAT due including on assets
Receive deregistration confirmation
4–8 weeks
Common Deregistration Mistakes
Forgetting asset VAT
The most expensive mistake. Input VAT claimed on stock, equipment and property must be repaid based on current market value. Most businesses underestimate this.
Wrong deregistration date
The date matters for your final return period and for calculating asset values. Getting this wrong creates discrepancies the Tax Department will query.
Incomplete final return
Your final VAT return must cover the full period from your last return to the exact deregistration date. Missing days or overlapping periods cause processing delays.
Not retaining records
VAT records must be kept for 6 years after deregistration. The Tax Department can still audit you for periods when you were registered.
Frequently asked questions
Work out the VAT on your own figures
Add or remove VAT at any Cyprus rate, with the rates from our facts table.
Open the VAT calculator →