Cyprus Business Now

Consulting and advisory firm PwC Cyprus recently announced that it successfully organised an event entitled “A New Reporting Obligation on VAT” at its state-of-the-art experience centre.

The event focused on CESOP, the upcoming European database designed to centralise information reported by Payment Service Providers, set to be operational from January 1, 2024.

The company explained that this initiative attracted a large audience comprising clients and associates of PwC Cyprus, all keen on understanding the intricacies of CESOP and its impact on VAT reporting.

Chrysilios Pelekanos, Head of Indirect Tax at PwC Cyprus, explained the framework of the new VAT reporting requirements.

“The introduction of CESOP marks a significant shift in VAT reporting standards across Europe,” Pelekanos said.

“It’s imperative for businesses to understand these changes to ensure their compliance and optimise their operations in the new regulatory environment,” he added.

Vassilios Vrachimis, Head of Consulting at PwC Cyprus, also shared valuable insights, emphasising the power of technology to deliver faster, better and more intelligent outcomes.

The event also featured a notable guest, Ioannis Georgoulas, Chairman of the Association of Cyprus Electronic Money & Payment Institutions, who provided an external perspective on the implications of these new reporting obligations.

The session concluded with an interactive Q&A, where attendees engaged with the speakers to clarify their doubts and gain deeper insights.

During the holiday season, Cypriots were active in supermarkets but didn’t significantly increase Christmas shopping elsewhere, according to George Ellinides, head of the small shopkeepers association (Povek).

He highlighted minimal activity in city centres, impacting shop owners struggling with rent and expenses, mainly in Nicosia. Ellinides attributed this to higher prices and people managing their spending.

Povek noted this year’s market activity didn’t surpass last year’s. Ellinides predicted modest holiday market movement, expressing concerns over a lack of structured discount approaches, affecting consumer behavior.

Moreover, supermarkets and butcher shops reported successful sales, unlike clothing and footwear stores.

Andreas Hadjiadamou of the Supermarkets Association noted stable prices and satisfactory festive sales, especially for essentials.

He said that he expects increased activity approaching New Year’s but flagged concerns about store return policies.

Marios Droushiotis of the Cyprus Consumers’ Association echoed successful supermarket sales, emphasising upcoming New Year’s shopping and challenges in adult clothing sales.

Finally, both Hadjiadamou and Drousiotis raised issues regarding store return policies, urging consumer awareness.

The Cyprus Stock Exchange (CSE) ended Wednesday, December 27 with losses.

The general Cyprus Stock Market Index was at 135.42 points at 12:51 during the day, reflecting a decrease of 0.67 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 82.19 points, representing a drop of 0.68 per cent.

The total value of transactions came up to €37,809 until the aforementioned time during trading.

In terms of the sub-indexes, the main and alternative indexes fell by 0.7 per cent and 0.44 per cent respectively. The investment firm index decreased by 0.69 per cent and the hotel index remained stable.

The biggest investment interest was attracted by Hellenic Bank (-0.44 per cent), Salamis Tours (no change), Logicom (no change), Blue Island (-2.35 per cent), and the Cyprus Cement Company (no change).