Nicosia has extended 0% VAT on goods

Cyprus’ Tax Department has announced a zero rate of value-added tax (VAT) on essential goods until September 30, 2024, following a decree issued by the cabinet. This measure aims to alleviate financial burdens on consumers amid economic challenges.

In a statement released on Monday, the Tax Department specified that the categories eligible for the zero VAT rate are bread, milk (including fresh milk – cow’s, goat’s, sheep’s), sweetened, condensed, long-life, flavored and vegetable milk (e.g. almond, soya, rice), eggs, baby food, children’s nappies, feminine hygiene products, adult diapers, coffee, sugar, meat (fresh or frozen including beef, pork, sheep or goat, poultry, rabbits, and edible offal) and vegetables (fresh or chilled, covering a variety from tomatoes, onions and lettuce to cucumbers, legumes, and others).

The Tax Department noted that the zero VAT rate has been effective since May 5, 2023 for some categories, and subsequently expanded on November 1, 2023, and December 1, 2023, for others.

The initiative aims to support consumers by reducing the cost burden on essential goods amid ongoing economic challenges in Cyprus.