Cyprus Expands Local Reverse Charge to Precious Metals

Domestic reverse charge in Cyprus has been expanded to include the acquisition of precious metals in their raw or semi finished forms. This is in effect as of October 7, 2022.

Because of this, the reverse charge method is applicable if the product is considered raw or semi-finished precious metals, subject to the following conditions:

• The business to business transaction involves two taxable persons: the vendor and the buyer.

• The transaction is strictly business related.

• The supplier and the customer are both taxable persons at the time of transaction.

• The business transaction involved the supply of raw and semi-finished precious metals.

Businesses and corporations that invest in precious metals in their raw or semifinished forms are required to maintain a record book for the duration of six years detailing all purchases.