No, Northern Cyprus is not in the EU for VAT.
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Northern Cyprus is not a member of the European Union (EU) and does not apply EU VAT rules. The island of Cyprus was divided into the Republic of Cyprus and the Turkish Republic of Northern Cyprus after a Turkish invasion in 1974. The international community views the northern part of the island as a Turkish-occupied territory, while Turkey considers it a separate state. As a result, Northern Cyprus is not internationally recognized as a sovereign state and is not a member of the EU.
According to the European Commission, “The situation of Northern Cyprus is unique and exceptional. In the absence of a comprehensive settlement of the Cyprus problem, the EU acquis [set of rules and laws] is suspended in those areas where the Government of the Republic of Cyprus does not exercise effective control.”
VAT in Northern Cyprus is governed by the Turkish Cypriot authorities. The Turkish lira is the official currency with the Euro being widely accepted in tourist areas. Interesting facts about Northern Cyprus include that it boasts over 300 days of sunshine per year, has a rich history dating back to ancient times, and is home to one of the last remaining wild donkey populations in Europe.
Table: Comparison of Northern Cyprus and Cyprus
| Northern Cyprus | Cyprus | |
|---|---|---|
| Official Language | Turkish | Greek and Turkish |
| Currency | Turkish Lira (TRY) | Euro (EUR) |
| Capital | North Nicosia / Lefkoşa | Nicosia / Lefkosia |
| Time Zone | Eastern European Time (UTC+2) | Eastern European Time (UTC+2) |
| Population | Approx. 300,000 | Approx. 1.2 Million |
| Religion | Majority Muslim | Majority Greek Orthodox Christian |
| Independence | Unilaterally in 1983 | 1960 |
| International Recognition | Only recognized by Turkey | Recognized by the United Nations and the European Union |
In conclusion, Northern Cyprus is not a member of the EU for VAT purposes as it is not internationally recognized as a sovereign state. Its VAT regulations are controlled by Turkish Cypriot authorities.
Watch related video
Northern Cyprus has become an increasingly popular destination for foreign students due to its affordable universities marketed as being recognized within Europe. However, weaknesses in the education system have emerged, including inconsistent quality of education and financial difficulties for some students, with agents accused of acting as human smugglers charging them to cross the green line to gain entry. Discrimination in healthcare and limited job opportunities have also been reported. Asylum seekers, particularly those who held student visas, face a difficult situation, with long wait times to obtain asylum and tension between the two parts of the island. Prospective students are advised to research universities themselves and check diploma recognition to avoid false promises by agents.
Other options for answering your question
The northern part of Cyprus is legally part of the EU, but law is suspended due to it being under the control of the Turkish Republic of Northern Cyprus, which the EU does not recognise. The North uses the Turkish lira instead of the euro, although the euro circulates alongside the lira and other currencies.
Northern Cyprus is recognised by law as part of the Republic of Cyprus but is recognised as being outside the control of the Greek Cypriot government. It is temporarily exempted from EU legislation.
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Is Cyprus VAT compliant?
Response to this: Whilst Cyprus follows the EU rules on VAT compliance, it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%.
How long does it take to get a Cyprus VAT number?
In reply to that: If your file is complete, it generally takes one month to obtain the VAT number from the competent Cypriot tax office. Is a fiscal representative necessary? Cypriot VAT authorities may require non-European companies to appoint a fiscal representative. This is a local company that will represent you to the local VAT authorities.
Can a Cyprus-registered company buy and sell to the same country?
Answer: Buying from and selling to the same country: A Cyprus-registered company buying and selling goods in the same country is not considered intra-community trade or export. The Cyprus VAT authorities will not accept VAT registration in this case and will likely ask the Cyprus company to register with that country’s VAT department instead.
Who appoints a vat representative in Cypriot?
In reply to that: Cypriot VAT authorities may require non-European companies to appoint a fiscal representative. This is a local company that will represent you to the local VAT authorities. He is responsible for the respect of all your VAT obligations, including those of which he was not aware.
Is Cyprus VAT compliant?
Response: Whilst Cyprus follows the EU rules on VAT compliance, it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%.
How long does it take to get a Cyprus VAT number?
The response is: If your file is complete, it generally takes one month to obtain the VAT number from the competent Cypriot tax office. Is a fiscal representative necessary? Cypriot VAT authorities may require non-European companies to appoint a fiscal representative. This is a local company that will represent you to the local VAT authorities.
Is Northern Cyprus a part of the EU?
As a response to this: However the Republic of Cyprus de facto controls only the south of the island while the TRNC government controls the north. Due to this dispute, northern Cyprus is de jure part of the EU by virtue of de jure being part of the Republic of Cyprus.
What percentage of Cyprus exports from the EU?
Response: Intra-EU trade accounts for 34% of Cyprus’ exports (Greece 9% and the Netherlands 5%), while outside the EU 8% go to Liberia and 9% to the United Kingdom. In terms of imports, 59% come from EU Member States (Greece 22% and Italy 8%), while outside the EU 8% come from the United Kingdom and 6% from China.