When issuing invoices for both EU and non-EU transactions, there are specific VAT rules that your Cyprus company needs to be aware of to ensure compliance. Here are some key points to consider:
1. **Invoicing within the EU**: When invoicing other EU countries, you will need to follow the EU VAT rules for supplies of goods and services between member states. This may include applying the reverse charge mechanism, which shifts the responsibility for accounting for VAT from the supplier to the recipient.
2. **Invoicing outside the EU**: For sales to non-EU countries, these transactions are generally considered exports and are zero-rated for VAT purposes. This means that no VAT is charged on the invoice, but certain export documentation and compliance requirements may need to be met.
3. **VAT numbers**: Ensure that you have the correct VAT numbers for your customers within and outside the EU. VAT numbers can be validated using VIES (VAT Information Exchange System) for EU customers to verify their VAT registration status.
4. **VAT treatment**: Different rules apply to intra-EU transactions (sales within the EU) and exports (sales outside the EU). Make sure you understand the correct VAT treatment for each type of transaction to avoid errors.
5. **Record keeping**: Maintain accurate records of all your sales transactions, including EU and non-EU invoices, to support your VAT returns and compliance with tax authorities.
Given the complexity of VAT regulations for cross-border transactions, it is advisable to seek guidance from our tax and VAT advisors or consultant with experience in international VAT matters. They can provide tailored advice based on your company's specific circumstances and help ensure that you meet all VAT obligations for EU and non-EU invoicing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.