This guide is written for freelance software developers, tech startups and IT companies. Rules change regularly and individual circumstances vary, so speak to a Tsquared accountant before acting. We regularly help clients with ip box 2.5% effective tax, freelancer vs. company, vat on cross-border digital services.
Key points
- B2B reverse charge
- OSS for B2C
- VIES returns
- Invoice requirements
Challenges you face, solutions we provide
Challenge: IP Box 2.5% effective tax
Our solution: IP Box eligibility assessed and nexus documentation kept current
Challenge: Freelancer vs. company
Our solution: Freelance vs. company comparison with real numbers before you switch
Challenge: VAT on cross-border digital services
Our solution: Reverse-charge and OSS VAT handled correctly on every cross-border invoice
Challenge: Stock options and equity
Our solution: Option schemes structured for the flat 8% regime with payroll reporting
Challenge: R&D cost tracking
Our solution: The 120% R&D super-deduction claimed with timesheet evidence
Frequently asked questions
- VAT on digital services: what's the short answer?
- Cyprus developers selling B2B services abroad usually apply the reverse charge, while B2C digital sales in the EU use the OSS scheme at the customer's VAT rate.
- Can Tsquared help with vat on digital services?
- Yes. We advise freelance software developers, tech startups and IT companies in Cyprus on vat on digital services and handle the filings for you.