E-invoicing in Cyprus (Electronic Invoice Compliance 2023)

From 2010 until 2013, the Cyprus electronic invoicing system remained optional. However, in 2013, the European Union's Directive 2011/7/EU made it a legal obligation for all EU member states, including Cyprus, to comply.

Cyprus has successfully implemented the e-invoicing system, obligating all public entities within the country to be capable of receiving and processing electronic invoices since 2020. Nevertheless, it is currently not mandatory for these entities to send electronic invoices to their suppliers or for business-to-business (B2B) transactions.

E-Invoicing Timeline

• 2018: Directive 2014/55/EU transposed into Cypriot legislation with the Law of Ν.89(Ι)/2019.

• April 2020: All sub-central and central government entities must be able to receive and process e-invoices.

Characteristics of an Electronic Invoice in Cyprus

The characteristics of an e-invoice in Cyprus mimic those of other EU Member States, but it is still important to have the following basic information included according to public procurement law and European Standard EN 16931.

Components of an e-invoice:

• Date of invoice issuance

• An identification number

• VAT number of the supplier

• Full name & address of the supplier and customer

• Full description of the goods or services provided

• A date of the supply if different from the invoice date

• The net, taxable value of the supply

• The VAT rate applied & value

• Reference to a triangular transaction

• Details to support zero VAT – export, reverse charge or intra-community supply

• The total gross value of the invoice

In Cyprus, e-invoicing regulations specify that it is not required to validate an invoice with an electronic signature, but many companies choose to voluntarily use them in order to improve security.

Steps for Sending a Compliant E-Invoice in Cyprus

1. Connect to a Peppol Access Point

Peppol Access Points, like DDD Invoices, are certified service providers dedicated to facilitating a secure e-invoice exchange among companies. These Access Points hold the crucial responsibility of ensuring full compliance with all e-invoicing regulations and standards.

By partnering with DDD Invoices as their Peppol Access Point provider, businesses can seamlessly connect to the e-invoicing network. This convenient solution enables businesses to effortlessly submit e-invoices directly to their customers through one API without the need for any software installations.

2. Create the e-invoice

If connected to the DDD Solution, e-invoices will be automatically created for you. If not, the invoice must be manually created in a standardized format that includes all of the necessary data.

3. Send the e-invoice to the Treasury of the Republic

This is conducted through the ARIADNI government portal, where the Treasury is responsible for receiving, processing, and storing the invoice. This can be reached through the gov.cy login page.

Peppol

Peppol (Pan-European Public Procurement Online) is a network infrastructure that facilitates electronic document exchange, primarily for e-invoicing, between businesses and government entities. It operates on a set of standardized specifications and protocols, enabling seamless and secure communication between participants through a 4-corner model.

An essential part of the Peppol network infrastructure is an Access Point (AP). It acts as a middleman or gateway to allow suppliers and receivers to exchange electronic documents, especially e-invoices. A certified AP has the main purpose of making it easier for e-invoices to be sent from one organization to another. Cyprus follows the Peppol BIS 3.0 standard, which will likely be used when they make e-invoicing mandatory for B2B transactions.

DDD Invoices: a Certified Peppol Service Provider

Want to connect to Peppol and don't know how? Here are the benefits of choosing DDD Invoices as your access point and e-invoicing solution:

• Unlock the ability to send and receive e-documents around the world, without worrying about local compliance issues. Through our API, we automatically fill in your invoice data and send the invoice to the proper tax authority, letting you focus on your core business processes and we manage the bureaucracy.

• Seamlessly integrate into your current invoicing system, ERP, or CRM in as little as one day. Enjoy an error-free and automated invoicing process through our secure and reliable service.

Want to connect to the Peppol network and achieve tax compliance? Contact our team to learn more.

FAQs for E-Invoicing Compliance in Cyprus