PEPPOL IN EUROPE
E-invoicing in Cyprus
Cyprus is fully committed to the further digitization of public procurement and VAT compliance. Under EU Directive 2014/55/EU, Cypriot government agencies must be able to receive and process electronic invoices that comply with the European standard EN 16931.
Currently, public authorities in Cyprus are required to be able to receive electronic invoices for B2G transactions. Suppliers, however, are not required to issue electronic invoices. They may voluntarily choose to send e-invoices via the national government portal or through the Peppol network. Peppol also facilitates the smooth cross-border exchange of electronic invoices with government agencies in other EU member states.
For B2B and B2C transactions, there is currently no general requirement to send electronic invoices. Cyprus is, however, preparing for further European developments regarding digital VAT reporting and e-invoicing, particularly the European ViDA initiative (VAT in the Digital Age). This initiative will further expand e-invoicing and digital reporting in the coming years.
What are the current e-invoicing requirements in Cyprus?
Cypriot government agencies must be able to receive electronic invoices that comply with the European standard EN 16931. This requirement stems from Law 89(I)/2019, which transposed EU Directive 2014/55/EU into Cypriot law.
There is currently no general requirement for suppliers, private companies, or consumers to send electronic invoices for B2G, B2B, or B2C transactions.
When will e-invoicing become mandatory for all businesses in Cyprus?
Cyprus has not yet established a national timeline for a general e-invoicing requirement for B2B or B2C transactions.
At the European level, however, the ViDA initiative does provide for significant changes. Starting July 1, 2030, member states will be required to implement structured electronic invoicing and digital reporting for certain intra-EU B2B transactions. Cyprus will need to align its national regulations accordingly.
What format is used for electronic invoices in Cyprus?
Cyprus uses the European standard EN 16931 as the basis for electronic invoicing. Peppol BIS Billing 3.0, which is based on this European standard, is also used for electronic invoices and provides interoperability with other European countries.
Through the Peppol network, electronic invoices can be exchanged in a standardized and secure manner between businesses and government agencies, both within Cyprus and across borders within Europe.
