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News announcement21 June 2022Representation in Cyprus

State aid: Commission approves €20 million Cypriot VAT deferral scheme to support businesses affected by the coronavirus pandemic

The European Commission has approved a €20 million Cypriot VAT deferral scheme to support businesses affected by the coronavirus pandemic and the restrictive measures in place to limit the spread of the virus.

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The scheme was approved under the State aid Temporary Framework. Under the scheme, the aid will take the form of deferrals of VAT with the exclusion of interests and penalties related to the deferred amounts. The aim of the scheme is to enhance the liquidity of the beneficiaries and to help them continue their activities during and after the pandemic. The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will be  granted no later than 30 June 2022; and (ii) the payment of VAT will be deferred until no later than 30 June 2023. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.102435 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. 

Details

Publication date
21 June 2022
Author
Representation in Cyprus