The House Committee on Financial Affairs discussed Monday a proposal for the amendment of the taxation laws, providing for their implementation in areas falling within Cyprus` Exclusive Economic Zone (EEZ).
According to the report, submitted before the House of Representatives` Committee, since the EEZ of the Republic falls within the sovereignty of the Republic of Cyprus, delivery of goods and granting of services within the EEZ for exploration and / or exploitation of natural resources, should be regarded as actions taking place in the Republic.
The report notes that facilities and / or constructs placed or used for research and / or exploitation of natural resources within the EEZ of the Republic constitute territory of the Republic and therefore the VAT legislation applies as well to those installations or constructs.
Published by: www.cna.org.cy
