To allow users to familiarise with the new system, the tax department said the new submission date for filing tax returns from Q4 last year has been extended to April 26. Likewise, the new submission date for filing tax returns from January 1 to March 31 has been moved forward to May 26.

Moreover, the deadline to submit the VIES report, formally called Recapitulative Schedule, for the month of March has been pushed to April 26.

A VIES report enables traders to confirm the VAT registration numbers of their customers in other EU member states, allowing them to check the validity of VAT numbers quoted to them. The VIES system applies to intra-EU trade only. Individuals and legal entities submitting tax returns for direct tax purposes can still use the old Taxisnet system for the time being.

A direct tax is a tax that a person pays directly to the entity that imposed it. All direct taxes are paid by an individual taxpayer directly to the government. As opposed to direct tax, an indirect tax is one that can be passed on to another person or group by the person or business that owes it. VAT is considered an indirect tax because it is generally collected and remitted by the seller.

Tax Commissioner Sotiris Markides said the new Tax For All system will improve his department’s efficiency, while providing users with a more reliable and more user-friendly tool. He added, however, that people will be able to pay their direct tax on the new online portal only at the end of 2024.

Source: Cyprus Mail