Cyprus (2020 eInvoicing Country Sheet)

Legislation

The Digital Strategy for Cyprus, approved by the Council of Ministers of Cyprus on 8 February 2012, recommends the adoption of eInvoicing in the context of promoting the use of ICT to enable a smart, sustainable and inclusive economy and society. The Department of Electronic Communications, with the guidance of the Advisory Committee for Information Society, developed the strategy for the period 2012 to 2020. This strategy is in line with the objectives and actions proposed by the Digital Agenda for Europe.

In Cyprus, Directive 2014/55/EU has been transposed via the law of 26 June 2019 on electronic invoicing in public procurement. eInvoices in B2G public procurement are used on a voluntary basis by suppliers. Receiving and processing of compliant e-Invoices is mandatory for central public sector bodies from 18 April 2019 on. Sub-central entities are mandated to receive and process compliant eInvoices from 18 April 2020 on.

The Ministry of Finance is the entity responsible for implementing eInvoicing in Cyprus.  

There is still no clarity on whether the implementation will be mandatory. SMEs need time for optional use of the system. 

Cyprus will also likely pursue B2B eInvoicing.

eInvoicing platform and management solutions

Cyprus has developed a centralised eInvoicing platform to process electronic invoices. This platform will serve as an ERP system operated in a hybrid model with the management of the Treasury of the Republic and involvement of AC Goldman Solutions & Services Ltd as the service provider acting on behalf of public sector organisation. The project was co-funded by the Connecting Europe Facility (CEF) programme (more information concerning the project in the ‘Additional information’ section below).

Approach for receiving and processing

Currently, economic operators submit eInvoices to the Treasury of the Republic on a voluntary basis via the eInvoicing Access Point of and through ARIADNI, the Cyprus Government gateway portal. The electronic invoices are processed manually (i.e. non-automated process). This process will be updated and performed in an automated manner once the centralised ERP System of the Cypriot Government enters into operation (January 2022).

eInvoicing implementation in sub-central level contracting authorities 

At sub-central level, the eInvoicing model in place is a Peppol-based strategy, but will be fully in place from the 18 April 2020. Today, the eInvoices coming from non-domestic suppliers are accepted. 

The main identified benefits of the implementation of eInvoicing at the sub-central level are cost and operational savings, and the contribution to process automation. Sub central government automation is in high level in most of the contracting authorities and entities.

Status on the implementation of the European Standard on eInvoicing (EN)

Cyprus Organisation for Standardisation (CYS) provides access to the CEN eInvoicing Standards through its website. 

In order to target the SMEs, a project is co-funded by the Republic of Cyprus and the European Regional Development Fund of the EU in the framework of the Operational Program "Competitiveness and Sustainable Development 2014-2020". The communication is done via seminars and circulars. 

Cyprus follows the Peppol BIS Billing 3.0 CIUS. Whether the system will be used for tax purposes is still to be assessed.

Monitoring eInvoicing implementation 

There is no monitoring strategy in place.

Additional information

The Ministry of Finance had participated in a co-financed CEF action (action code: 2015-CY-IA-0052) and developed a technical infrastructure enabling the exchange of eInvoices in the B2G context.

The main objective of this project was to facilitate the adoption of eInvoicing by enabling economic operators to submit electronic invoices to central government authorities. This will be achieved by adopting European and international standards and through the connection to the Peppol Access Point [1]. The timeline for the implementation of the action was from 1 October 2016 to 31 December 2017.

Public and private actors constitute the consortium:

• Public sector: the Ministry of Finance as coordinator, the Ministry of Energy, Commerce, Industry and Tourism, the Ministry of Transport, Communications and Works (Department of Postal Services) and the Cyprus Organisation for Standardisation;
• Private sector: RTD TALOS Ltd, Deloitte Ltd and AC Goldman Solutions & Services Ltd.

Continuing the Digital Strategy for Cyprus the Ministry of Interiors and the Ministry of Finance are also involved in another CEF-funded project [2] to implement B2G eInvoicing at local authorities’ level.

This project has the following public, local authorities and private sector partners:

• Public sector: the Ministry of Interiors - District Administration Nicosia, the Ministry of Finance, Department of Taxation;
• Local Authorities: the Union of Cyprus Municipalities, the Union of Cyprus Communities, the Nicosia Municipality;
• Private sector: RTD TALOS Ltd, AC Goldman Solutions & Services Ltd and Boomertel Ltd.

[1] The Council of Ministers approved a decision to adopt Peppol on 15 February 2017.

[2] Action code: 2016-CY-IA-0105.

Last updated:  Feb 03, 2021 15:38