Tax department identifies widespread non-compliance in Cyprus coastal businesses

Over the past ten days, the Cyprus Tax Department has conducted surprise, targeted inspections at 30 businesses located in coastal areas, including Ayia Napa, Protaras, Larnaca, and Paphos. The audits targeted restaurants, bars, souvenir shops, kiosks, water sports providers, and boat trip operators to verify adherence to new tax legislation introduced as part of recent reforms.

The investigation revealed that 50% of the inspected businesses were in violation of the law. Common infractions included failing to issue mandatory receipts or invoices to customers and refusing to accept credit card payments as required. Tax officers cross-referenced transaction data by questioning customers as they exited premises to ensure actual sales matched official records.

This enforcement action is part of a new, stricter policy that allows authorities to seal the premises of non-compliant businesses. While the authorities expressed concern over the high rate of non-compliance, they noted that the inspections are ongoing. Businesses identified as violating the tax laws will face further scrutiny, and those that continue to ignore warnings may have their establishments temporarily shut down by the authorities.