- Cyprus has officially extended the 0% VAT rate on essential goods, including baby products, hygiene items, and fresh produce, until December 31, 2026, as part of efforts to alleviate cost-of-living pressures on households.
- This extension, initially set to expire at the end of 2025, aims to support citizens by increasing disposable income, particularly amid the ongoing global cost-of-living crisis, even with projected inflation at nearly zero for 2025.
- Retailers must ensure their systems are updated to maintain the zero-rated VAT for these essential items throughout 2026, while the standard VAT rate in Cyprus remains at 19%, along with other reduced rates applicable to various goods and services.
Source Fiscal Requirements
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Cyprus Extends Zero VAT on Basic Goods Through 2026 to Ease Cost of Living
- Cyprus will continue zero VAT on basic goods throughout 2026.
- The measure covers baby milk, diapers, adult incontinence products, and women’s health items.
- Fresh and chilled vegetables and fruits are included in the zero-VAT list.
- The policy aims to ease household budgets and keep living costs down, especially for families and vulnerable groups.
Source: ekathimerini.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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