Recommended contact person
Numerous sectors performing economic activity in Cyprus are now legally obliged to introduce card payment.
The introduction of the electronic credit card machine in most business sectors is undoubtedly big and great news for Cyprus. On the 18th of June 2021, the Cyprus Official Government Gazette published the Decree on Confirmation and Collection of Taxes (Details on the Enforcement of the Obligation to Accept Payment by Card) 2021 of the Cyprus Ministry of Finance (Issue No 5548) . According to this Ministerial Decree industries including the retail merchant services, entertainment and hospitality, education, legal, financial, medical services, gambling and many more industries are not only legally obliged to introduce credit card machines to their businesses but are also obliged to notify clients that they accept both payment via cash and credit card from the 18th of September this year.
There are several reasons behind the legal requirement to introduce credit card payments in most Cyprus businesses. These include the need to eliminate tax avoidance and safeguard public revenue, the need to eradicate fraud, the importance of providing robust protection for consumers from theft or loss and finally, the need to provide consumers with further ease of payment when it comes to the purchase of goods and services in the island. Moreover, machine payments enable consumers to keep track of their payment history and consequently keep their finances organised.
The law provides that disobedient businesses in the sectors where the law places such requirement, will be subject to legal fines of up to 2 thousand Euros and the Cyprus Tax Department is the appropriate body to decide upon those penalties.
For more information on how to comply with the new law, please contact our highly experienced team, which will be able to give detailed advice on how the provisions of this law apply to each client’s independent case and whether their business falls under the sectors required to introduce credit card payments.
The information provided by A.G. Paphitis & Co. LLC is for general informational purposes only and should not be construed as professional or formal legal advice. You should not act or refrain from acting based on any information provided above without obtaining legal or other professional advice.
Should you have any questions please contact us.