Summary
- By Council of Ministers Decree R.A.A. 362/2026 of 16 October 2026, announced by the Tax Department on 19 October 2026, Cyprus extends the 0% VAT rate on selected basic items from 1 January to 31 December 2027.
- The extension covers baby milk, baby and adult diapers including incontinence pads, feminine hygiene products, potatoes and a range of fresh vegetables and fruit.
- A separate Decree No. 363/2026 lowers VAT from 19% to 9% on household photovoltaic systems, while the zero rate for items such as meat, fish, bread, milk, coffee and sugar under Decree No. 354/2026 still ends on 31 May 2027.
Extended article
The zero-rating measures were first introduced to help households cope with higher living costs and have been renewed several times. The latest decree gives retailers and suppliers a full calendar year of certainty for the listed staples, which include several personal-care categories.
Cyprus now has two zero-rate regimes with different end dates: 31 December 2027 for the items in Decree 362/2026 and 31 May 2027 for those in Decree 354/2026. Suppliers should map product master data to the correct decree, check that point-of-sale and ERP tax codes switch on the right dates, and apply the separate 9% rate to qualifying household solar installations.
Source
Latest Posts in "Cyprus"
- Cyprus approves temporary 0% VAT on essential goods
- Cyprus: Zero VAT Rate Applied to Essential Goods Until May 2027
- Cyprus Launches €25 Million VAT Case Over Abramovich-Linked Luxury Yacht
- Cyprus Decrees Zero-Rate VAT on Goods, Cuts VAT for Residential Solar
- Cyprus: Zero VAT on Essential Goods Through May 2027













