Cyprus Contemplates Zero VAT Extension as Spain Pushes Forward with Reduced Rates

• Cyprus and Spain are both discussing extending the zero VAT measure on basic food items
• Cyprus has not yet decided on extending the zero VAT rate, while Spain is planning to continue it after June
• Spanish government had eliminated VAT on essential food items in January 2023 to combat inflation
• Retailers in Cyprus believe extending the zero VAT rate is necessary, but there are concerns about the benefit reaching consumers
• There is debate on whether the zero VAT measure reduces state revenues without benefiting consumers

Source: in-cyprus.philenews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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