✅ Official Announcement
The Cypriot government has extended the zero VAT rate on essential goods until 31 December 2026, marking the fifth extension of this measure. The decision was approved by the Council of Ministers following a proposal from the Ministry of Finance.
Key points from the announcement:
- Products covered:
- Baby milk (liquid and powdered)
- Diapers (infant and adult)
- Feminine hygiene products (tampons, sanitary pads, incontinence pads)
- Fresh or chilled fruits and vegetables
- Reason for extension:
- Despite inflation projected at 0% for 2025, the government aims to support vulnerable households, reduce living costs, and improve disposable income.
- Additional context:
- The measure was initially set to expire in December 2025 but will now remain in force until December 2026.
- Finance Minister Makis Keravnos emphasized that maintaining zero VAT helps households manage expenses and improves their standard of living. [cyprus-mail.com], [knews.kath…ini.com.cy], [cyprus-faq.com], [stockwatch.com.cy]
Useful Links
- Cyprus Mail – Extension of zero VAT on basic goods until December 2026 [cyprus-mail.com]
- KNEWS – Cyprus extends zero VAT on essential goods through 2026 [knews.kath…ini.com.cy]
- Cyprus FAQ – Zero VAT Rate on Essential Goods Extended Until December 2026 [cyprus-faq.com]
- StockWatch – Cabinet extends zero VAT on certain basic goods [stockwatch.com.cy]
- vatcalc
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