March 1st 2024

Cyprus has successfully implemented the e-invoicing system, forcing all public entities within the country to be capable of receiving and processing electronic invoices since 2020.

However, it is currently not mandatory for these entities to send electronic invoices to their suppliers or for business-to-business (B2B) transactions. For B2B transactions, bilateral agreements between business partners are necessary.

The e-invoicing model follows the EN 16931 standard, and the transmission of electronic invoices is conducted through the Peppol network. An electronic signature (e-signature) is not required and the archiving period for e-invoices amounts to eight years.

 

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How does it work?

The Ministry of Finance is the entity responsible for implementing e-invoicing in Cyprus but it’s the Treasury that receives the invoice in their portal (previously called ARIADNE, we’re giving more details down below).

The main Government’s arguments in favor of e-invoicing are sustainability, but also promotes a smart and inclusive economy and society.

Cyprus is expected to develop a centralized e-invoicing platform, similar to an ERP (Enterprise Resource Planning) system operated in a hybrid model.

Currently, economic operators submit e-invoices to the Treasury of the Republic on a voluntary basis via the e-invoicing Peppol Access Point and through www.gov.cy, the Cyprus Government gateway portal, which replaced the ARIADNE digital services catalogue. The e-invoices are processed manually but the system will be updated for an automated version once the centralized ERP System of the Cypriot Government enters into operation.

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