Regulatory updates - Cyprus

Background

In 2019, Cyprus transposed the Directive 2014/55/EU with the law of Ν.89(Ι)/2019 on e-invoicing in public procurement. The following timelines have been imposed on public entities to receive and process EN-compliant invoices:

• Central governmental entities since 18 April 2019;
• The remaining public agencies since 18 April 2020.

Currently, e-invoice issuance for suppliers of governmental sectors takes place on a voluntary basis via Peppol or the governmental portal ARIADNI. The invoices are processed manually.

However, the government of Cyprus is on the way to making e-invoicing mandatory in line with the Digital Agenda for Europe and its own Digital Strategy. The e-invoicing adoption is anticipated to reduce operational costs in the country and promote process automation.

When does the mandate take effect?

The introduction of mandatory e-invoicing for all public procurement transactions with both public and private suppliers in scope is planned for 1 January 2022.

Additionally, Cyprus may seek the implementation of B2B e-invoicing in the future.