Cyprus Chamber Of Commerce Highlights New EU VAT Rules For Small Businesses

Reforming EU VAT Policy For Small Business Competitiveness

The Cyprus Chamber of Commerce and Industry (Keve) has announced changes to the European Union VAT framework affecting small businesses. The updated rules introduce a revised system allowing certain small and medium-sized enterprises (SMEs) to apply VAT exemptions in multiple EU member states.

Expanding Exemptions Beyond National Borders

Under the previous framework, VAT exemptions were available only in the member state where a company was established. The revised system allows eligible SMEs to apply VAT exemptions in other EU countries where they conduct sales, even if they do not maintain a permanent establishment.

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To qualify, a company’s total annual turnover across the EU must remain below €100,000. Domestic turnover must also remain below the national VAT exemption threshold, which can reach up to €85,000 in some member states.

Simplified Registration And Reduced Bureaucracy

The reform introduces a single registration procedure that allows companies to request VAT exemptions in other member states through the tax administration of their home country. Businesses using the scheme may submit a single quarterly declaration and follow simplified invoicing requirements. The measures are intended to reduce administrative procedures for companies operating across EU markets.

Digital Tools And Official Guidance for SMEs

The European Commission has introduced an online platform providing a self-assessment tool and an eligibility simulator for SMEs considering the scheme. Additional guidance, including explanatory materials and leaflets, is available through the website of the Cyprus Tax Department.

Looking Ahead

According to the chamber, the updated VAT framework is intended to simplify procedures for small businesses operating in multiple EU markets. The revised rules allow eligible SMEs to apply for VAT exemptions beyond their country of establishment.

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Cyprus’ Poverty And Social Exclusion Risk Stands At 17.1%

by THEFUTURE.TEAM

October 20, 2026

Cyprus recorded a poverty or social exclusion risk rate of 17.1% in 2025, below the European Union average of 20.9%, according to new Eurostat figures. Across the bloc, however, more than 92 million people continued to face the risk, highlighting persistent social and economic inequalities.

More Than 92 Million People At Risk Across The EU

A total of 92.7 million people across the EU were at risk of poverty or social exclusion in 2025, equivalent to just over one in five residents.

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Cyprus is treated as a single statistical region because of its size, unlike many member states divided into multiple regions for comparison. Its national figure therefore provides an overall picture but does not capture differences between districts or communities.

Regional Gaps Remain Stark Across Europe

The risk varied considerably across the EU, with the highest rates concentrated largely in southern, eastern and outermost regions. In 24 of the 243 regions with available data, at least 31.5% of the population faced poverty or social exclusion.

These regions were located in Spain, Bulgaria, Greece, Italy, France and Romania, as well as Brussels in Belgium and Bremen in north-western Germany.

French Guiana recorded the highest rate, at 54.8%, followed by Calabria in southern Italy at 45.3% and Sicily at 44%. Melilla, a Spanish autonomous city, recorded 43.7%, while Réunion, another French outermost region, stood at 42.3%.

Central Europe Records The Lowest Rates

At the other end of the scale, 24 regions reported poverty or social exclusion risk rates below 13% in 2025. These included five eastern EU capital regions: Bratislava in Slovakia, Warsaw in Poland, Prague in the Czech Republic, Budapest in Hungary and Zagreb in Croatia.

Other regions with low rates were concentrated in northern Italy, the Czech Republic, northern Belgium, Hungary, Poland and Austria, illustrating the uneven distribution of economic security across Europe.

Cyprus Remains Below The EU Average

Cyprus’ rate of 17.1% places it below the EU average, although it remains higher than the levels recorded in the bloc’s lowest-risk regions.

The figures suggest that Cyprus performs relatively well compared with the wider EU, but poverty and social exclusion remain significant challenges across the bloc, affecting more than 92 million people.

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