Accounting for e-commerce businesses in Cyprus
E-commerce sellers carry VAT and reconciliation complexity that ordinary Cyprus businesses never meet. Domestic taxable turnover above €15,600 in any rolling 12 months triggers compulsory Cyprus VAT registration at the 19% standard rate, but the harder questions sit cross-border: the EU-wide €10,000 distance-selling threshold, when to use the One Stop Shop (OSS) versus local registrations, VIES recapitulative statements on B2B supplies, and the place-of-supply rules for digital goods and services. Layered on top are marketplace and payment-processor payouts reported net of fees, multi-currency settlement and the foreign-exchange differences that flow through your accounts. Underneath it all the company still owes 15% corporate tax on taxable profit and must be audited or reviewed. We build a books-to-VAT workflow that ties every channel together so your filings are right in each country you sell into and your margin is visible by channel, not just at year-end.
What we take off your plate
Cross-border EU VAT & OSS
Once EU consumer sales pass the €10,000 distance-selling threshold, VAT is generally due in the customer's member state at their local rate. We register you for the One Stop Shop so a single quarterly return covers every EU country, sparing you 27 separate registrations.
Marketplace & PSP reconciliation
Amazon, Shopify, Stripe and PayPal pay out net of commissions, refunds, chargebacks and withholding. Those net deposits hide the gross sale and the fee that must each be booked separately for VAT. We map every settlement file so the gross-to-net reconciles cleanly.
Multi-currency bookkeeping & FX
Selling in euro, sterling and dollars while buying stock in another currency creates realised and unrealised exchange differences. We record sales at the correct rate, reconcile each currency wallet and treat the FX movements properly under IFRS.
Import VAT, IOSS & customs
Goods imported into the EU, and consignments under €150 sold to EU consumers, raise import VAT and the Import One Stop Shop (IOSS). We get the customs and IOSS treatment right so you are not double-taxed or blocked at the border.
Inventory, COGS & true margin
Stock spread across fulfilment centres and 3PLs must be valued correctly to state cost of goods sold and gross margin. We deliver management accounts showing real margin by channel and SKU while you can still act on it.
Audit or ISRE 2400 review
Every Cyprus company is either audited or, where turnover is under €300,000 and assets under €500,000 for two consecutive years, eligible for the lighter ISRE 2400 review. We keep records audit-ready and coordinate the ICPAC-licensed engagement.
The services that fit
VAT Services
Cyprus VAT registration, returns, VIES and OSS — handled accurately and on time so you avoid penalties.
Learn moreAccounting & Bookkeeping
Accurate, ICPAC-aligned bookkeeping and management accounts that keep your Cyprus company compliant and decision-ready.
Learn moreTax Compliance
Corporate and personal income tax returns, provisional tax and SDC — prepared accurately and filed on time.
Learn moreFrequently asked questions
Compulsorily once taxable turnover exceeds €15,600 in any rolling 12-month period, at the 19% standard rate. Separately, for cross-border sales to EU consumers the EU-wide €10,000 distance-selling threshold brings the One Stop Shop into play, after which VAT is due in the customer's country rather than Cyprus.
Below the €10,000 EU threshold you may charge Cyprus VAT at 19%. Above it, VAT is generally due in the customer's member state at their local rate. Rather than registering in each country, you report it through a single OSS return filed quarterly in Cyprus.
Each payout is net of platform commission, refunds and fees, but the gross sale and the fee are separate transactions for VAT and bookkeeping. We import the settlement reports, book the gross revenue and expenses individually, and reconcile to the actual bank deposit so nothing is understated.
The Import One Stop Shop lets you collect EU VAT at the point of sale on imported goods valued up to €150 sent to EU consumers, so parcels clear customs without VAT charged on delivery. If you ship low-value goods into the EU from outside it, IOSS usually improves the customer experience and simplifies compliance.
15% on taxable profit from 2026. Where the business owns proprietary software or a platform, qualifying IP profit may benefit from the IP Box at an effective rate of around 3%. The Notional Interest Deduction on new equity can further reduce the effective rate.
Every Cyprus company must have its financial statements either audited or reviewed. The lighter ISRE 2400 review is available where turnover is below €300,000 and total assets below €500,000 across two consecutive years; otherwise a full statutory audit applies. Both are performed by ICPAC-licensed practitioners.
Electronically supplied services to EU consumers are taxed where the customer is located, regardless of value, and are reported through the OSS. Physical goods follow the distance-selling and IOSS rules instead. Correctly classifying each line as a good or a digital service is essential to charging the right rate.
Useful tools & guides
Ready to get your numbers in order?
Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.
- Reply within 1 business day
- Fixed fees, no obligation
- ICPAC-aligned · established 1984