Payment terms and e-invoicing for corporate merch in Cyprus | Merch Cyprus
How Cypriot suppliers invoice, what the TaxisNet portal does to your process, and how EU reverse-charge and non-EU bank transfer actually work.
Payment, invoicing and Cyprus tax compliance
Every invoice issued for corporate merch delivered in Cyprus is electronic, registered with the Cyprus Tax Department via TaxisNet, and carries the standard 19% VAT unless the recipient is an EU VAT-registered business (reverse charge) or a non-EU resident. This page explains what this means for new clients, what payment terms we offer, and how cross-border payment actually flows through the banking system.
Domestic Cyprus clients: 19% VAT via TaxisNet
For any client registered in Cyprus with a valid TIN (Tax Identification Number), we issue a TaxisNet-registered e-invoice with 19% VAT added to the net amount.
The e-invoice is generated through the TaxisNet portal (taxes.gov.cy) and is sent to the client as a PDF with a verifiable TaxisNet registration number. The client can use this number to claim input VAT credit on their own VAT return. For VAT-registered Cypriot companies this is a routine administrative flow; for non-VAT-registered buyers (individuals, small unincorporated businesses) the 19% is a final cost.
Payment terms for domestic clients are 50% deposit on order confirmation and 50% balance on delivery, by default. Established recurring clients can move to net 30 or net 45 days on credit approval. We do not offer credit terms to first-time clients because the cost of a default is too high.
Payment methods: bank transfer in EUR to our Bank of Cyprus or Hellenic Bank account; cheque for established employment clients; credit card via Stripe (small orders only). Cash payments above €1,500 are reported to the Cyprus Bar Association's anti-money-laundering register in line with EU AML directives.
EU clients: reverse charge and intra-community supply
Clients in other EU member states with a valid VAT number are invoiced VAT-free under the EU reverse charge mechanism. We verify the VAT number through VIES before invoicing.
The reverse charge means the client accounts for VAT in their own country at their own rate, using their own VAT return. We do not charge VAT on the invoice; we record the client's VAT number and the reverse-charge note ('reverse charge — VAT to be accounted for by the recipient'). The client's tax authority can verify the supply via the VIES portal and the Cyprus Tax Department's records.
For reverse-charge to apply, the goods must move from Cyprus to another EU member state. We ship with a CMR or a courier waybill that documents the cross-border movement. The shipping documents are kept on file for five years in line with EU record-keeping requirements.
Payment terms for EU reverse-charge clients are typically net 30 days from invoice date. For larger contracts (above €10,000) we may ask for a 30% deposit on order confirmation. EU clients can pay in EUR via SEPA bank transfer; non-EUR SEPA payments are converted at the ECB reference rate on the invoice date.
Non-EU clients: zero-VAT export with documentation
For clients outside the EU, we issue a zero-VAT invoice and attach the export documentation required by the destination country.
The export documentation includes a commercial invoice, a packing list, a CMR or courier waybill, and (where required by the destination country) an EUR.1 or EUR-MED certificate for preferential origin, a certificate of origin from the Cyprus Chamber of Commerce and Industry (KEBE), and HS tariff codes for customs clearance.
For UAE, Saudi Arabia and other GCC countries we add an Arabic translation of the commercial invoice and the certificate of origin. For the UK (post-Brexit) we include the EORI number and the relevant HS codes. For Russia and Belarus we apply the latest sanctions and licensing rules, which have changed several times since 2022.
Payment terms for non-EU clients are typically 100% in advance by bank transfer in EUR or USD, unless the client has an established credit profile (12+ months of trading history). We do not accept payment in cryptocurrency.
Bank transfer, currency and FX
All our pricing is in EUR, and most payments are in EUR. We accept USD for non-EU clients, with the conversion locked at the invoice date.
Bank details: Bank of Cyprus (corporate current account in EUR) and Hellenic Bank (secondary account for redundancy). Both accounts are registered with TaxisNet for invoice verification. We also hold a small AstroBank account for retail clients who prefer a local Cypriot bank outside the two major banks.
For SEPA payments we provide our IBAN and BIC/SWIFT. For non-SEPA international transfers we ask clients to instruct their bank to use the SWIFT network with 'OUR' charge codes (sender pays all charges) to avoid deduction at intermediary banks.
For USD payments, the conversion is locked at the invoice date's ECB reference rate, with a buffer of 1% to cover FX movement during the transfer window. The client pays the converted amount plus the buffer; any surplus is refunded on receipt.
Recurring clients and credit terms
After 12 months of trading history, established clients can apply for credit terms (net 30 or net 45 days) on recurring programmes.
The credit application process: we issue a credit application form, the client returns it with their latest audited financials (or management accounts for unincorporated businesses), we run a soft credit check via a Cyprus-registered credit reference agency, and we set a credit limit based on the trading history and the financial profile.
Credit limits start at €5,000 and rise with usage and timeliness of payment. A client who has paid every invoice on time for 24 months typically has a credit limit of €25,000–€50,000. Above that, we ask for a bank guarantee or a parent-company guarantee.
Late payment: we charge interest at the Cyprus statutory rate (currently 8% per annum) on overdue invoices, starting 7 days after the due date. We suspend further dispatches when an invoice is more than 30 days overdue and we reserve the right to claim compensation for recovery costs under EU Late Payment Directive 2011/7/EU.
What you need from us to process the invoice
For new clients, three pieces of information are needed before the first invoice can be issued.
1. A valid VAT number for EU clients, or a valid TIN for Cyprus clients, or a business registration document for non-EU clients. We verify EU VAT numbers through VIES before invoicing. Cyprus TINs are verified via TaxisNet. Non-EU business registration is verified through the relevant government registry (e.g. UAE Economic Department, UK Companies House).
2. A purchase order or a written order confirmation. The PO should include the agreed product, quantity, unit price, total, delivery address and any client-specific reference numbers. We use this to reconcile against the invoice and to defend the supply in a tax audit.
3. A billing email address for the invoice. We send the TaxisNet-registered e-invoice to this address by default; a copy is also sent to the operations contact for reconciliation. For multi-entity clients we set up per-entity billing contacts.
Frequently asked questions
Do you accept payment in cash?
Yes for small orders (below €1,500) and for walk-in retail clients in our Limassol showroom. For B2B orders above €1,500 we require bank transfer, cheque or credit card. Cash payments above €1,500 are reported to the Cyprus authorities in line with EU AML directives.
What is your standard payment term?
50% deposit on order confirmation and 50% balance on delivery for new clients and one-off programmes. 30% deposit for established recurring clients. Net 30 or net 45 days for credit-approved clients. 100% in advance for orders below €500 net or for non-EU export orders.
How do I claim back the VAT I paid on a TaxisNet invoice?
Submit the invoice on your own VAT return via the TaxisNet portal (or your home country's equivalent for EU reverse-charge clients). The TaxisNet-registered invoice number is the verification key. For cross-border VAT refunds, the EU 13th Directive procedure applies — we can assist with the documentation.
Do you charge VAT to EU clients?
No, if the client provides a valid EU VAT number verified through VIES. The invoice is issued VAT-free under the reverse charge mechanism. The client accounts for VAT in their own country. We record the VAT number and the reverse-charge note on every invoice.
Can I pay by credit card?
Yes for orders below €2,000 via Stripe. Above €2,000 the credit card surcharge becomes uneconomic, and we ask for bank transfer. For corporate cards on net-30 terms we can set up a recurring billing agreement via GoCardless or a similar SEPA direct debit provider.
What happens if I pay late?
We charge interest at the Cyprus statutory rate (currently 8% per annum) on the overdue balance, starting 7 days after the due date. We suspend dispatches when an invoice is more than 30 days overdue. We reserve the right to claim compensation for recovery costs under EU Late Payment Directive 2011/7/EU.
Is Corp-Merch a partner or official sponsor of any events or brands covered on this page?
No. Corp-Merch coordinates merchandise-side work in B2B programmes and is independent of event organisers and brand owners.
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