The Cyprus tax department issued Circular 3/2025 on 8 April 2025 to clarify value added tax (VAT) rules for unredeemed expired vouchers. The Circular focuses on single-purpose and multi-purpose vouchers.
- Single-purpose vouchers: VAT on single-purpose vouchers is accounted for at issuance. No VAT adjustment is needed if vouchers are not used within their expiration date.
- Multi-purpose vouchers: VAT on these vouchers is applied at redemption. If they expire unused, they are not linked to any supply of goods or services, and no VAT is due.