On 4 October 2026, the Cyprus Tax Department announced it has issued second and final notices to a number of businesses that failed to comply with mandatory receipt issuance and electronic payment acceptance requirements. Under the amended tax legislation, the Department now has the authority to order the temporary closure of non-compliant premises for up to 30 days, marking the first time such enforcement action has been taken since the rules were introduced. The move signals a significant escalation in the government’s efforts to combat tax evasion and improve VAT compliance in the retail and services sectors.
Key Takeaways
- Enforcement Milestone: The issuance of closure orders represents a shift from advisory warnings to punitive measures, leveraging the 2023 amendments to the Tax Assessment and Collection Law that empower the Tax Department to seal business premises.
- Compliance Requirements: Businesses are legally required to issue a receipt for every transaction and accept electronic payments via card or mobile applications; failure to do so constitutes a criminal offence punishable by fines and closure.
- Expected Revenue Impact: The Tax Department estimates that full compliance could recover millions of euros in lost VAT revenue annually, while also leveling the playing field for compliant businesses.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement