Tax department identifies widespread non-compliance in Cyprus coastal businesses

The Cyprus Tax Department has intensified inspections across popular coastal tourist areas, revealing that 60% of businesses checked were operating in violation of tax regulations. These targeted surprise inspections, conducted over the past two weeks, focused on water sports operators, boat trip organizers, souvenir shops, and restaurants in Paphos, Ayia Napa, Protaras, and Larnaca.

More than 100 inspections were carried out during this period, with inspectors confirming that 60 businesses failed to issue legal receipts or invoices. Investigators used undercover methods, waiting outside premises to verify if customers received proper documentation after transactions. In addition to tax receipt violations, the department noted that many businesses continue to refuse credit card payments. These enforcement actions are part of a broader crackdown involving a business-sealing measure that has been in effect since June to combat tax evasion.

These efforts are part of the government's ongoing strategy to increase tax compliance during the peak summer season. The Tax Department intends to continue these intensified checks to ensure businesses follow legal financial procedures.