Cybooks

Configure tax rules

This guide explains how to view, create, and manage tax rules (VAT rates) in Cybooks.

Tax rules determine how VAT is calculated on your invoices, bills, and expenses. Cybooks comes with a set of default tax rules for Cyprus-based businesses, covering standard VAT rates, reverse charge rules, EU transactions, and more. You can also create custom tax rules for rates or scenarios specific to your business.

View your tax rules

  1. Go to Settings and select Tax Rules from the sidebar.

  2. The Tax rules page displays all tax rules in a table with three columns:

    • Name -- the display name of the tax rule
    • Tax rate -- the VAT percentage
    • Tax Type -- the category that controls how the rule appears in VAT returns

    Default (system) tax rules are shown with a lock icon and cannot be deleted.

Add a custom tax rule

If you need a VAT rate or tax type combination that is not covered by the defaults, you can create your own.

  1. Go to Settings and select Tax Rules from the sidebar.

  2. Click Add tax rule.

  3. A slide-out panel opens with two tabs: Income and Expense. Select the tab that matches how this tax rule will be used.

  4. Enter a Tax Rate Display Name. This is the name that appears when selecting a tax rule on invoices, bills, and expenses.

  5. Enter a VAT Rate (percentage between 0 and 50).

  6. Select a tax type from the list. Each tax type includes a description explaining when to use it:

    Income tax types:

    • Sales -- domestic sales within Cyprus subject to VAT
    • Exempt Sales -- domestic sales that are VAT exempt (e.g. financial services, insurance)
    • EU Sales of Goods (Reverse Charge) -- goods sold to VAT-registered businesses in another EU country
    • EU Sales of Services (Reverse Charge) -- services sold to VAT-registered businesses in another EU country
    • OSS Sales -- B2C sales to customers in other EU countries reported through the One Stop Shop scheme
    • Non-EU Services -- services provided to customers outside the EU
    • Export Non EU -- goods exported to customers outside the EU

    Expense tax types:

    • Purchases -- domestic purchases from Cyprus suppliers subject to VAT
    • Exempt Purchases -- purchases that are VAT exempt (e.g. bank charges, insurance)
    • EU Purchases (Reverse Charge) -- services bought from VAT-registered EU suppliers
    • EU Acquisitions (Reverse Charge) -- goods bought from VAT-registered EU suppliers
    • Non-EU Reverse Charge -- services bought from suppliers outside the EU
    • Import -- goods imported from outside the EU with VAT paid at customs

  7. Click Save.

The tax rule is now available when creating invoices, bills, expenses, and other transactions.

Edit a tax rule

  1. Go to Settings and select Tax Rules from the sidebar.

  2. Click the action menu (three dots) on the tax rule you want to change and select Update.

  3. Update the Tax Rate Display Name or VAT Rate as needed.

    For default (system) tax rules, you can only change the name. The VAT rate and tax type are locked.

    For custom tax rules, you can change both the name and the VAT rate. The tax type cannot be changed after creation.

  4. Click Save.

Delete a custom tax rule

You can only delete tax rules that you created. Default tax rules cannot be deleted.

  1. Go to Settings and select Tax Rules from the sidebar.

  2. Click the action menu (three dots) on the custom tax rule and select Delete.

  3. Confirm the deletion.

Frequently asked questions

What are the default Cyprus VAT rates? Cybooks comes pre-configured with the standard Cyprus VAT rates: 19% (standard), 9% (reduced), 5% (reduced), and 0% (zero-rated). These are set up for both income and expense categories.

Why can I not delete or change the rate on some tax rules? Tax rules that ship with Cybooks are locked to ensure your VAT returns are calculated correctly. You can rename them, but the rate and tax type are fixed. Custom tax rules you create can be fully edited or deleted.

What is a tax type and why does it matter? The tax type controls which box a transaction appears in on your VAT return. For example, "EU Sales of Goods (Reverse Charge)" routes the transaction to the correct intra-community supply box. Choosing the right tax type ensures your VAT return is accurate.

Can I change the tax type after creating a rule? No. Once a tax rule is created, the tax type is permanently set. If you need a different tax type, create a new tax rule with the correct type instead.

What is a reverse charge tax rule? Reverse charge rules are used for cross-border transactions where the buyer (rather than the seller) accounts for VAT. In Cybooks, reverse charge rules automatically handle the VAT calculation for your VAT return -- you do not pay VAT to the supplier, but you declare and reclaim it in your return.

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