Issuance of invoices and receipts in Cyprus is regulated by the national laws regarding Direct and Indirect Tax, as well as the relevant Regulations issued based on them.
According to these laws, any business entity that engages in business activities is required to issue legal invoices and collection receipts for transactions.
These laws prescribe usage of approved Tax Electronic Mechanisms or Fiscal Electronic Marking Mechanisms.
These certified devices and their specifications are defined by the Ministry of Transport, Communications and Works and only approved models are allowed to be used for issuing electronic fiscal receipts.
Fiscal devices are systems used to issue receipts, reports and other statistical data and in which the tax memory is secured with inviolability.
There are a couple of different fiscal device types, but they can all be considered HW devices since the fiscal memory and paper/electronic journal and printing of receipts and reports is mandatory.
Failure to comply with receipt issuance requirements can result in a penalty equal to 20% of the transaction value and/or in administrative fines, adjustments in taxable income or legal penalties, including potential fines of up to EUR 1700 or imprisonment of up to 3 years.
If you need more information regarding Cyprus fiscalization rules, reach out to JB Fiscal Consulting in order to get and/or to remain compliant.