Inland Revenue - On Spot Visits for the verification of the issuance of invoicing and receipts and their legality

NOTICE

The Inland Revenue inform operators as well as service providers (individuals and legal entities) that during 2011 and early 2012, authorized representatives will conduct on the spot visits in order to check and verify the issuance of the invoices and receipts and their legality, according to the existing law of the Department.

Subparagraph 1 of Article 30 (Record Books) of the Assessment and Collection of Taxes Law No. 4 / 1978 as amended provides as:

30 - (1) "Any person who derives income from sources specified in paragraphs (a), (e) and (f) of subsection (1) of Article 5 or paragraphs (a), (d) and (e ) of subsection (2) of Article 5 of the Income Tax Act, is obliged for each such fiscal year to;
(A) issue invoices and receipts relating to his transactions and receipts, as defined in the regulations issued by the Cabinet and published in the Official Gazette of the Republic of Cyprus.

The relevant Regulations referred to in the above section are the following Regulatory Administrative Acts (RAA):
1. RAA 29/1997: Regulations provide invoices, receipts, and recordkeeping.
2.   RAA 179/1997, 105/2008 and KDP KDP 224/2010: Notification issued concerning the Technical Standards to be met by any type of Electronic Tax Mechanism used for invoices and receipts.

Also, according to the latest amendment to Article 9 (deductible expenses) of the Income Tax Law N118 (I) / 2002 as amended, are not deductible -
(I) any costs that are not supported by invoices and receipts for recovery or other information provided in the regulations issued under subsection (1) of Article 30 of the Assessment and Collection of Taxes Act -

The above legislation is at the web site of the Inland Revenue Department (http://www.mof.gov.cy/ird ) under the scope of legislation.

The above information has been received from the Inland Revenue website, at http://www.mof.gov.cy/ird