Chelco VAT Marks 10 Years on the Cyprus VAT Scene

The Founder and Managing Director of Chelco VAT, Alexis Tsielepis, talks to GOLD about the when, where, how and why

How and why did Chelco VAT come about? What are your core competencies?

Chelco VAT arose through a necessity to create a VAT-dedicated company for the purpose of offering high-level VAT services to our clients. We have founded our success on the provision of specialised, highly customised and practical VAT solutions that are based on years of experience, knowledge and expertise in the field.

Our services are based across three pillars:

The first is the advisory services that we offer, which can be as simple as a high-level review of a business, through to VAT Opinions, requests for VAT rulings, discussions with the tax authorities, representation before the Tax Tribunal and more.

The second pillar is our compliance arm, which deals with all matters of VAT applications, completion and submission of various VAT forms, as well as VAT representation in Cyprus.

The third pillar is our educational arm. In 2016, we created the Chelco VAT International Academy, which offers high-level physical or online training both in Cyprus and abroad. My partner in the firm and co-instructor, Panayiotis Iona, and I are often asked to create bespoke VAT seminar programmes for in-house training, where we go to businesses to educate them on VAT matters. The pinnacle of the education offered by the Academy is the Diploma in VAT Excellence (DiVE), a 10-month training programme that examines in great detail the VAT Directive, 50 judgments from the Court of Justice of the European Union as well as the Cyprus VAT law.

Who makes up Chelco VAT today?

Apart from my fellow Director, Panayiotis Iona, the Chelco VAT consulting team is currently complemented by Yiannis Christofi, who deals with compliance matters, and lawyer Marios Nikolaides, who specialises in VAT advisory.

What exactly is Value Added Tax and how does it work?

Academically, Value Added Tax (VAT) is an indirect tax that targets “consumption”.

Conceptually it is everywhere. In our daily lives as consumers, we come across VAT on most goods and services we acquire, although in most cases we may not notice it. Businesses are asked to act as VAT collectors on behalf of the Treasury, yet the various VAT rules have become increasingly complex, leading to an amplified cost of complying, which in many cases is exceptionally high, especially for small and medium-sized businesses.

A VAT system has been implemented in more than 175 countries across the world, and for most of them, including Cyprus, it forms their largest source of income. In the European Union (EU), Member States should enact a VAT system in their national laws that adheres to the European VAT Directive, harmonized across the EU. In practice, however, the entire system is problematic with each national tax authority pulling in separate directions creating many areas of conflict and uncertainty, which is detrimental for businesses. There are already several plans in place to amend the EU VAT law, some planned for as far down the line as 2030. These amendments will then need to be enacted in national laws. In addition, Member States discuss their own amendments to the national law separately from what is being discussed at EU level. Binding judgments for Member States from the EU Court of Justice offer clarifications in interpreting provisions of the EU VAT Directive. They also create confusion.

There is seldom a dull day in this dynamic and challenging environment. Working in VAT is as rewarding as it is stimulating. I cannot think of a better job to have!

You are now considered the undisputed experts on VAT in Cyprus. How did you reach this pinnacle?

With a lot of effort, many sacrifices, an incredible amount of hard work, hours of study, momentous curiosity, dedication to our staff, respect for our clients, standing our ground when we believe we are in the right and, above all, unconditional passion!

Indeed, people in the know describe you as passionate about VAT. Is that true?

I have always been totally dedicated in the things I do. There are no half measures. VAT is one of those things in my life that is constantly evolving. It challenges me. I can identify VAT as the culprit for the emotional peaks and troughs I have experienced in my life. VAT is the mistress that is most devoted to me but also the most demanding of my everything. In a nutshell, yes, I am passionate about VAT!

CHELCO VAT LTD

Chelco VAT Ltd started its operations in 2014 in Limassol and is now widely considered as the foremost authority on indirect tax matters on the island. From the simplest local transaction to the more complex cross-border one, the tax consultants of Chelco VAT work alongside their clients and professional intermediaries to maximise VAT planning efficiency and ensure compliance.

The firm maintains strong and durable relationships with the island’s key public and private organisations, including the Cyprus Tax Department, as well as with professional bodies and decision-makers, frequently offering advice on VAT policy-making decisions.

CONTACT DETAILS

Address:

221, Chr. Chatzipavlou Str., Helios Court, 1st Floor, 3036 Limassol, Cyprus

P.O. Box 51625, 3507 Limassol, Cyprus

Tel: (+357) 25871200

Fax: (+357) 25871220

e-mail: info@chelcovat.com

Website: www.chelcoVAT.com