Tax Department to begin business closures over unpaid debts and missing receipts

Economy cypruseconomytaxTop News Tax Department to begin business closures over unpaid debts and missing receipts Foros Xrimata Relevant News Tax Department to begin business closures over unpaid debts and missing receipts 28 June 2026 Paphos hotel occupancy falls 20% below last year 28 June 2026 Investigators seek expedited tests in case of one-year-old boy who died in Limassol hospital 28 June 2026 Eleftheria Paizanou 28 June 2026 FacebookXWhatsAppEmailPrintViber Tax inspectors will begin surprise checks on businesses in tourist areas within days, using new powers to suspend operations for companies that fail to issue receipts and invoices or owe more than €20,000 in tax. The business closure measure, which will be introduced gradually during July, will be used in Cyprus for the first time as part of the tax reform that came into force at the start of the year. It adds to other measures aimed at improving tax collection, including the registration of MEMO charges against property and the freezing of taxpayers’ bank accounts over unpaid tax liabilities. The first inspections will focus on businesses that operate mainly during the summer, according to information obtained by Phileleftheros. Tax Department officers will carry out unannounced on-site checks at restaurants, bars, water-sports businesses, souvenir shops, kiosks and companies operating sea excursions. Checks on sea-excursion operators will focus on businesses running day trips and shorter cruises within Cyprus during the summer season. The Tax Department will also initially target major debtors with tax liabilities exceeding €1 million, according to information obtained by Phileleftheros. The department has drawn up a list of 500 businesses operating in betting, yacht sales and luxury vehicle sales, with inspections at those companies expected to be targeted. Other officers will check whether businesses issue invoices and receipts to customers. Inspectors will wait outside business premises and stop customers to ask them to show receipts issued by shops, the report said. They will also identify the products bought by customers to determine whether the receipts issued by businesses are accurate. Tax Commissioner Sotiris Markides told Phileleftheros that department teams were ready to begin the required inspections. He said inspectors had completed the necessary training and had been equipped with specialised equipment and tablets. The department had also made changes to its software, allowing officers to enter information for each business. Markides said customers would face no consequences if a business failed to issue a receipt. He called on the public to cooperate with inspectors by showing receipts when asked and answering related questions. Officials have been instructed to carry out inspections discreetly, Markides said. “We recognise the difficult year facing the tourism sector, but we will carry out the checks discreetly. We do not want to harm any business, but we call on them to cooperate and comply,” he added. Under the law, businesses that fail to issue receipts or have tax debts will receive an initial warning and 15 days to comply. Businesses that continue to breach the law will receive a second warning with another 15-day deadline. If they still fail to comply during the next inspection, they will receive a third warning lasting five days. Businesses will be closed once the grace period expires. Markides said taxpayers who agree to repayment schedules for their debts would not automatically be considered compliant. They will be regarded as complying with the law only if they make the instalments agreed with the Tax Department. From next year, the business closure measure will also apply to companies that fail to submit tax returns, in addition to those that do not issue receipts or have unpaid tax debts. Taxpayers have been given one year to submit their tax returns. Subscribe to our Newsletter Latest News Paphos hotel occupancy falls 20% below last year Investigators seek expedited tests in case of one-year-old boy who died in Limassol hospital Eleven people killed in plane crash in northeastern France, local officials say Death toll in Venezuela quake tops 1,400 as rescue efforts intensify World Cup round of 32 primer: Favorites, African teams abound France records 1,000 excess deaths during record-breaking heatwave Police investigate circumstances of serious injury to Norwegian tourist in Ayia Napa Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.