Every online sale into the EU: where VAT is due, which scheme applies, and the rate your customer pays.

No. It is one figure for the whole EU. A Cyprus seller adds together goods shipped to consumers in every other EU state and digital services supplied to consumers there, for the calendar year. €4,000 to France, €4,000 to Germany and €3,000 to Italy is €11,000, which is over the threshold, although no single country came close.

Usually not. Above the threshold you owe VAT in each customer's country, but the Union one-stop-shop scheme lets you declare and pay it all on one quarterly return filed in Cyprus. You still need a separate registration wherever you hold stock, for example in a fulfilment warehouse in Germany, because sales from that stock to local customers fall outside the scheme.

Only while its cross-border consumer sales of goods and digital services stay at €10,000 a year or less, and it has not opted in. Above that it charges the customer's rate, from 17% in Luxembourg to 27% in Hungary. Sales to businesses with a valid VAT number in another EU state carry no Cyprus VAT at all, because the customer reverse charges.

A business established in Cyprus registers for the Union scheme online with the Cyprus Tax Department, using its existing Cyprus VAT number. The scheme normally starts on the first day of the next calendar quarter. If you make your first qualifying sale earlier, it starts from that sale, provided you notify the Tax Department by the 10th day of the following month.

Union and non-Union returns are quarterly, due by the last day of the month after the quarter: 30 April, 31 July, 31 October and 31 January. Payment is due by the same date. Import scheme returns are monthly, due by the end of the following month. A nil return is still required for a period with no sales, and deadlines do not move for weekends or public holidays.

None, provided the customer gives you a valid VAT number, which you should check on the EU's VIES system and keep on file. For services the customer accounts for VAT under the reverse charge. For goods you ship, the sale is an exempt intra-Community supply. Either way the invoice needs both VAT numbers and the correct wording, and the sale goes on your Cyprus EU sales statement.

Electronically supplied services are delivered over the internet with minimal human involvement: software and SaaS subscriptions, apps, streaming, e-books, recorded online courses, digital downloads and online advertising space. Telecoms and broadcasting are taxed the same way. A live online class or a video consultation is usually not electronically supplied, and follows the rules for other services.

For digital services, keep two items of evidence that do not contradict each other, such as billing address, IP address, the country of the bank or card, or the country of a mobile SIM. While your cross-border digital sales stay at €100,000 or less in the current and previous year, one item from a third party such as your payment provider is enough. For goods, the delivery address and proof of shipment do the job.

Usually you do. A seller established in Cyprus and shipping from EU stock stays liable for the VAT, even on Amazon. The marketplace becomes the deemed supplier only for imported consignments of €150 or less, and for goods in the EU sold by sellers established outside the EU. Check the marketplace's VAT reports each quarter so the same sale is never declared twice.

Only part of it. Sales from that warehouse to consumers in other EU states can go through the scheme. Sales to consumers in the warehouse country, and moving your own stock into it, need a local VAT registration there. The VAT in the Digital Age package plans to bring more of these supplies into the scheme from 1 July 2028, which the adviser should confirm against national law.

No. A business established outside the EU owes VAT in the customer's country from its first sale to an EU consumer. A US or UK SaaS company registers for the non-Union scheme in one EU state, which can be Cyprus, and declares every country's VAT there each quarter.

The Import scheme cannot be used and marketplaces are not deemed suppliers. Import VAT at 19% and any customs duty are charged at the border, normally to the customer through the courier, who adds a handling fee. A seller can ship duties paid to spare the customer that, but must then be registered for VAT in Cyprus.

Since Brexit the UK is outside the EU schemes, so the one-stop-shop does not cover it. Digital services to UK consumers carry UK VAT at 20% from the first sale, and a seller with no UK establishment must register with HMRC because no threshold applies to it. Goods sent in consignments of £135 or less carry UK VAT charged at checkout, by you or by the marketplace. Sales to UK businesses are reverse charged. Northern Ireland still follows EU rules for goods.

The package was adopted in March 2025 and phases in until 2035. From 1 July 2028, platforms are due to become deemed suppliers for short-term accommodation and passenger transport, though states may delay this, and the one-stop-shop is extended to more supplies. From 1 July 2030, intra-EU business sales move to e-invoicing with near real-time digital reporting. Sources differ on some dates, so all of them are marked Confirm.

Ten years from the end of the year of the sale, even after you leave the scheme. The records show the customer's country, what was sold, the date, the price, the VAT, any later adjustment, and the evidence of where the customer was. Tax authorities in any EU state can ask for them electronically.