Yes, we’ve covered this topic in the past, and have even used the same title, twice. But… although the title is too good to change, this seminar will be a little different.

The Chelco VAT International Academy continues its series of high-level VAT educational events this time with a morning seminar focussing on specific aspects concerning the application and complexities of the Right to Deduct VAT.

In this ‘deductions’ seminar, we will shed much more light on how we should treat the input VAT split between economic and non-economic activities. This is always an area of dispute when being examined. We need to understand some ground rules before applying a formula to determine this ‘pre-pro rata’ split. 

We will also be looking at the economic pro-rata split (i.e. input VAT that should be allocated between exempt and taxable transactions) and examine the turnover-based allocation method which is in the law, discussing also alternative formulas. 

The Right to Deduct VAT is the single most important aspect of the VAT legislation. The deduction system is meant to relieve traders entirely of the burden of the VAT payable or paid in the course of all their taxable economic activities. The European Court of Justice (ECJ) has ruled time and time again that the right to deduct is a fundamental right of the taxable person and cannot be limited. However, the increased complexities of the number and types of transactions that businesses undertake today can lead to errors in input VAT deductions, and disagreements with the VAT authorities, which can consequently become very costly for the taxable person. Having a solid understanding of the deduction system is therefore paramount.

The seminar will cover the following:

  • An explanation of the main provisions in the Cyprus VAT legislation and EU VAT Directive regarding the right of deduction
  • Understanding the underlying philosophy of apportioning input VAT for non-economic activities, and examining which method is appropriate
  • Understanding the available methods for the pro-rata apportionment (exempt and non-business activities)
  • In all aspects of the seminar, where possible, we will analyse decisions of the European Court of Justice that emphasise the points made
  • As always, several examples will be presented and solved

The seminar is open to any professional with exposure to VAT matters such as accountants of all levels, chief accountants, CFOs, financial controllers, VAT advisors, auditors, tax lawyers, tax advisors, et al.


8:30am – 9:00am
Registration & Coffee
9:00am – 9:05am

Welcome Address
Alexis Tsielepis – Instructor

9:05am – 11:00am
  • The starting point (definitions and basic principles)
  • Non-economic activity and the case of Polysar
  • Understanding Input VAT and the ‘direct and immediate’ link
  • Step 1 of deductions: direct allocation to specific outputs
11:00am – 11:30am

Coffee Break

11:30am – 1:30pm
  • Step 2 of deductions: overhead allocation to non-economic activity [pre pro-rata] and the case of Securenta
  • Step 3 of deductions: overhead allocation to economic activity [pro-rata]
  • Examples

Discussion and Questions


End of Seminar


The Instructor

Alexis Tsielepis, BSc, FCA
Managing Director
Chelco VAT Ltd
E-mail: [email protected]

Alexis is widely considered as the foremost expert on VAT in Cyprus. With close to 20 years of experience in VAT strategic consulting, he advises businesses on international VAT matters and lectures at local and international VAT conferences.

Alexis possesses an extensive vocational and educational experience in European VAT and a detailed comprehension of EU VAT matters and decisions of the European Court of Justice (ECJ). He has served on various committees charged with tax matters and his work includes liaising with the Cyprus tax authorities and government on policymaking.

He has written a number of tax syllabuses, chapters and articles on matters pertaining to Cyprus and EU VAT. He is the author of the book “An in-depth analysis of the Fixed Establishment concept and a comparison with the Permanent Establishment concept”.

Alexis is a Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW), and holds the Expert in European Value Added Tax Degree, which he earned with the highest grade ever awarded in the history of the coveted diploma. He is a Partner and a Director of the VAT Forum in Belgium and the co-founder and Vice-Chairman of the Cyprus VAT Association (CYVA).

He is also a Certified Vocational Trainer with the Human Resources Development Authority of Cyprus (ANAD).

Alexis is sharing his knowledge on VAT in a series of seminars and workshops organised by the Chelco VAT International Academy, covering an array of VAT-dedicated topics, with the crown jewel being the Diploma in VAT Excellence (DiVE), a 10-month course covering EU and Cyprus VAT law in a depth never before seen in Cyprus.

Who Should Attend?

Professionals dealing with VAT matters at all levels and in all industries, who would like to expand or enhance their VAT knowledge:
  • Accountants

  • Chief Accountants

  • CFOs/Financial Controllers

  • VAT Consultants

  • Tax Lawyers

  • Tax Consultants

  • Tax Accountants

  • VAT Department Officers

When, Where & How Much?

Date & Venue

Friday, 26 April 2024, Columbia Plaza Venue Centre


9:00am – 1:30pm (registration at 8:30am)
4 CPD Units (certificates of attendance will be provided


€175 + VAT 
Group Discount (for 3 persons or more): 15%
Free for current students of the Diploma in VAT Excellence (DiVE).
Mention in Notes when registering.



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