Cyprus Extends 0% VAT on Essential Goods, Including Baby and Hygiene Products, Until End of 2026

• Cyprus has extended the 0% VAT on essential household items until December 31, 2026.
• The zero-rate VAT applies to infant milk, baby and adult diapers, feminine hygiene products, and all fresh or chilled fruits and vegetables.
• The extension aims to support citizens affected by the global cost-of-living crisis, despite low projected inflation for 2025.
• Retailers and suppliers must update their systems to apply the 0% VAT through 2026.
• The standard VAT rate in Cyprus remains 19%, with other reduced rates still in effect for different goods and services.

Source: fiscal-requirements.com

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Imposition of a zero VAT rate on basic items from January 1, 2026 to December 31, 2026

• Continuation of Zero VAT Rate: The Tax Department announces that the zero VAT rate on specific basic items will remain in effect from January 1, 2026, to December 31, 2026, as per the Decree of the Council of Ministers dated November 21, 2025.
• List of Exempt Items: The items included under the zero VAT rate cover essential goods such as baby milk (liquid and powder), baby and adult diapers, feminine hygiene products, and a variety of fresh vegetables and fruits. Notable examples include potatoes, tomatoes, bananas, and citrus fruits.
• Comprehensive Vegetable and Fruit Categories: The decree specifies numerous vegetable and fruit categories eligible for the zero VAT rate, including fresh or chilled vegetables like cucumbers and carrots, as well as a range of fresh fruits such as grapes, melons, and strawberries. This initiative aims to alleviate the financial burden on consumers by maintaining lower prices on these essential items.

Source gov.cy

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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