The Plenary of the Parliament unanimously passed a law so that taxable persons who purchase raw and semi-processed precious metals should pay the VAT using the reverse charge method, while the persons who deliver the said goods should not pay the VAT. 36 MPs present voted in favor.
The law was deemed necessary since the Ministry of Finance considered that the way in which second-hand jewelery is traded in Cyprus, mainly gold and silver, as well as the way in which taxable persons trading in this sector return and claim a refund or and VAT deduction, in the context of their business activity, involve the risk of losing public VAT revenue.
Source: KYPE