Only businesses that are registered for VAT can charge VAT, when registered VAT is added on all taxable sales (output tax) supplied in Cyprus and to non-VAT registered parties within the EU.

VAT applied to sales invoices is referred to as “output tax”.
VAT applied to purchase [...]

From January 1st 2010 a series of changes to EU VAT law will be applied which will run through to 2015.  This first phase will especially affect business that trade internationally.  Businesses will need to be compliant with the new regulations in order to avoid potential penalties by 01/01/2010.
Key changes:

Place of supply of [...]