Skip to content
← Share and support customer ideas for Xero

Settings and activity

1 result found

  1. VAT EU - Reverse charges in Global edition of Xero

    57 votes

    We're glad you're here

    Please sign in to leave feedback
    Signed in as (Sign out)
    Close
    Close

    We’ll send you updates on this idea

    submitted  ·  22 comments  ·  Reports & tax » Fixed Assets  ·  Admin →
    How important is this to you?

    We're glad you're here

    Please sign in to leave feedback
    Signed in as (Sign out)
    Close
    Close
    Pegasus Flight Centre supported this idea  · 
    An error occurred while saving the comment
    Pegasus Flight Centre commented  · 

    Our company is VAT registered in Cyprus. In accordance with local VAT legislation, we are required to apply the reverse charge mechanism to the following categories of transactions:

    - Goods purchased from EU suppliers (intra-Community acquisitions)
    - Services received from both EU and non-EU suppliers
    - Local goods and services subject to reverse charge under Cyprus VAT law

    Under the reverse charge mechanism, VAT is self-assessed by the recipient on the value of the goods or services purchased (output VAT), which is simultaneously recoverable as input VAT when the taxpayer is involved in taxable transactions, subject to the normal deduction rules. These entries must be correctly reflected in our accounting records in accordance with the provisions of Cyprus VAT law.

    Could you please advise on the following:

    1. Whether there is a way to enable or access VAT reverse charge tax rates for a Cyprus-registered organisation in Xero
    2. Whether a dedicated Cyprus VAT return module currently exists, or is planned for the future

    If no dedicated Cyprus module is currently available, could you also advise whether Xero has a recommended or supported method for handling reverse charge VAT reporting?

    Given the technical nature of this request, we would be grateful if it could be forwarded to a member of your team with expertise in EU VAT compliance, so that we may discuss this matter in more detail.