E-invoicing in Cyprus: A Complete Guide to Digital Billing

Cyprus introduced e-invoicing for public procurement in line with the EU Directive 2014/55/EU, which was adopted into national law in June 2019. Since April 18, 2019, all central government authorities have been required to receive and process structured e-invoices, with the same rule extended to other public sector bodies from April 18, 2020. This step helps modernise public administration, improve transparency, and keep Cyprus aligned with European Union standards for digital invoicing.

Since 18 April 2019, all central government authorities in Cyprus must be able to receive and process structured e-invoices under the national implementation of Directive 2014/55/EU, from 18 April 2020, the same obligation was extended to all sub-central public sector entities. At present, private business-to-business (B2B) and business-to-consumer (B2C) invoicing is not yet mandated in Cyprus.

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In Cyprus, strict e-invoicing isn’t really needed, companies run smoothly without it. Many handle their invoices in their own way, and going digital is just one choice among others.

Since 18 April 2019, all central government authorities in Cyprus must be able to receive and process electronic invoices that comply with the European standard EN 16931, and from 18 April 2020, the same obligation was extended to all sub‑central public sector entities. At present, suppliers are not yet legally required to issue structured e‑invoices in their transactions with the public sector the issuance remains voluntary.

The Ministry of Finance-Cyprus continues to steer the national e‑invoicing platform, using the PEPPOL network and other EU‑compatible infrastructure. While there is active discussion about expanding structured e‑invoicing beyond public procurement, no official deadline or mandate has yet been published for mandatory issuance by all businesses.

What is e-invoicing and why does Cyprus use it?

In Cyprus, e-invoicing means sending and receiving invoices electronically in a structured digital format that meets European standards. These e-invoices are exchanged through systems like the Peppol network or the government’s e-invoicing portal. Since 18 April 2019, all central government authorities have been required to receive e-invoices, and from 18 April 2020, the same rule applies to other public sector bodies.

Cyprus uses e‑invoicing in the public procurement context to align with the Directive 2014/55/EU on electronic invoicing, modernise public administration processes, and improve transparency in transactions with suppliers to the state. Currently, issuing e‑invoices is not yet mandatory for B2B or B2C transactions in Cyprus, the requirement is mainly around the public sector receiving them rather than all businesses issuing them.   

What is PEPPOL and how is Cyprus using it

PEPPOL (Pan-European Public Procurement Online) is a European network that helps businesses and governments exchange invoices in one clear, standard format. Instead of everyone using different systems and styles, PEPPOL sets a common structure (EN 16931) so that e-invoices can move smoothly between countries and software without confusion or errors.

Cyprus uses PEPPOL as part of its public-sector e-invoicing setup. Government entities can receive e-invoices through the PEPPOL network, and suppliers can send them using certified PEPPOL Access Points or the national government channels. This keeps Cyprus fully aligned with EU rules and makes invoicing faster, simpler, and more reliable for everyone involved.

Legislation timeline

B2G timeline:

• 26 June 2019 –Cyprus officially transposed EU Directive 2014/55/EU on electronic invoicing in public procurement into national law via Law L.89(I)/2019. This law provided the legal framework for structured e‑invoices and aligned Cyprus with EU standards.
• 18 April 2019 – All central government authorities in Cyprus were required to be able to receive and process electronic invoices.
• 18 April 2020 – The obligation extended to all sub-central public sector entities (regional/local authorities).
  

B2B Timeline

• Structured B2B e‑invoicing is not yet mandatory in Cyprus. Businesses can issue e‑invoices voluntarily, and the system, including PEPPOL, is ready for future expansion.
  

B2C Timeline

• Cyprus does not yet require businesses to issue structured e‑invoices for B2C transactions. Businesses can continue reporting sales digitally when needed, and the system is already in place to support e‑invoicing.

B2G (Business-to-Government) Transactions

Since the EU’s Directive 2014/55/EU was adopted, Cyprus set a firm starting point for public‑sector e‑invoicing. From 18 April 2019, all central government authorities must be able to receive and process structured electronic invoices. A year later, on 18 April 2020, that obligation was extended to sub‑central public sector entities.

The national e‑invoicing system is designed for seamless inter‑operation, structured invoices follow the European standard EN 16931 and are exchanged via the certified PEPPOL network and the government’s own portal. Public bodies must accept e‑invoices, but suppliers don’t have to send them yet. However, the system is ready, so Cyprus can make it mandatory in the future.

B2B (Business-to-Business) Transactions

In Cyprus, structured e-invoicing for B2B transactions is not yet mandatory, but businesses can already issue electronic invoices voluntarily. The country’s e-invoicing framework follows the EU Directive 2014/55/EU and is technically prepared to support wider adoption through the PEPPOL network, which allows companies to exchange invoices securely and efficiently across Europe.

While the government has not yet announced a fixed date for mandatory B2B e-invoicing, Cyprus has built the necessary infrastructure to make the transition smooth when it happens. Using the PEPPOL BIS 3.0 standard and the European EN 16931 format will help Cypriot businesses improve accuracy, reduce administrative work, and stay fully compliant with upcoming EU digital invoicing requirements.

B2C (Business-to-Consumer) Transactions

In Cyprus, there is currently no requirement for structured e-invoicing in B2C transactions. However, businesses are encouraged to use electronic means to record and share their sales data with the Tax Department to support transparency and improve VAT reporting.

Most retailers and service providers such as shops, restaurants, and cafes are required to use fiscal devices or certified POS systems that automatically record each transaction. These systems ensure that VAT information and payment details are properly captured and available to the tax authorities when needed. 

Although consumers still receive paper or PDF receipts, Cyprus is gradually preparing for a more digital and traceable invoicing process in line with EU standards and digital transformation goals.

Fiscalization

In Cyprus, fiscalization helps ensure that every sale is properly recorded and VAT is reported accurately. Businesses dealing directly with consumers are required to use certified cash registers or POS systems approved by the Tax Department. These systems issue receipts with all required details, such as the VAT number and total amount, while keeping transaction data stored safely.

Although Cyprus doesn’t yet have a real-time reporting system, fiscal devices are already designed to meet EU standards for transparency and digital record-keeping. This setup helps prevent tax evasion, improves accuracy in VAT collection, and prepares businesses for future electronic invoicing requirements.

E-reporting

In Cyprus, e-reporting focuses on helping businesses submit accurate and transparent VAT and sales data to the Tax Department. While full real-time e-reporting is not yet mandatory, companies must keep proper digital records and submit their VAT returns electronically through the government’s Taxisnet system. This ensures that tax information is consistent, traceable, and easy to verify.

The system supports Cyprus’s gradual move toward the EU’s “VAT in the Digital Age (ViDA)” initiative, which aims to make reporting faster, simpler, and more transparent across member states. By maintaining structured digital records, businesses can stay compliant, reduce errors, and prepare for the future introduction of real-time digital reporting and e-invoicing requirements.

Non-Compliance Penalties in Greece

In Cyprus, businesses must follow VAT and invoicing rules set by the Tax Department. Failing to submit required VAT returns, such as the monthly RS returns for intra‑community supplies, can result in a €50 penalty, and repeated non-compliance may lead to fines up to €850. 

For general accounting and invoicing obligations, not keeping proper books can incur a penalty of €341.72, while issuing incorrect invoices can bring a €85 fine. Late submission of VAT returns may also trigger a €100 penalty, and late VAT payments are subject to 10% of the unpaid amount plus interest.

These penalties encourage businesses to maintain accurate financial records, issue correct invoices, and submit VAT on time. By doing so, they stay compliant with EU digital tax standards, improve transparency, and reduce the risk of errors or audits.

Your Trusted Partner for E-Invoicing in Cyprus

Cyprus has already made e‑invoicing mandatory for public sector bodies under EU Directive 2014/55/EU. Since 18 April 2019, central government authorities must be able to receive electronic invoices, and from 18 April 2020, this requirement was extended to other public entities.

With DDD Invoices, you can easily send e-invoices that meet both Cyprus government and EU standards, and get the benefits of e-invoicing. We handle formats like EN 16931 and PEPPOL BIS 3.0, so your invoices are always correct, secure, and ready for both public and private clients. We make it simple to stay compliant, avoid mistakes, and get ready for future B2B e-invoicing requirements in Cyprus.

FAQs

Who needs to use e-invoicing in Cyprus?

Currently, all suppliers to public sector bodies (B2G) must issue e-invoices following EU Directive 2014/55/EU. B2B e-invoicing for private companies is not yet mandatory, but the system is ready, and businesses are encouraged to prepare for structured formats like EN 16931 and PEPPOL BIS 3.0. 

Do I need special software to send e-invoices?

Yes. You need software that supports the required structured formats and can submit invoices through the PEPPOL network or the national e-invoicing portal. Many accounting systems and ERP platforms already support these standards.

What if I make a mistake in my e-invoice?

Most platforms and the Tax Department allow corrections. It’s important to review your invoice before sending, but if an error happens, you can usually correct it before any penalties are applied.

Are there penalties for not submitting e-invoices correctly?

Yes. For B2G invoices, failing to submit invoices properly or on time can result in fines set by the Cyprus Tax Department. While B2B e-invoicing isn’t mandatory yet, keeping accurate digital records is important to stay compliant and avoid potential issues when the rules expand.