Extension of Temporary Application of Zero VAT Rate for Essential Items

Further to our previous newsfeed on this, on 13 September 2023 the Council of Ministers of the Republic of Cyprus approved the extension of the application of the zero rate of VAT on selected food and socially essential products for the period from 1 November 2023 up to 30 April 2024 and the application of the same rate to some additional items for the same period.

The zero rate of VAT will apply to the following items:

  • Bread: all types of bread, fresh or frozen, with or without leaven (e.g., white, black, wholegrain, multigrain, rustic, rye, cornbread, baguette, ciabatta, sliced bread, loaves, bread rolls, pittas). Pastries, rusks and any bread with added ingredients such as raisins, nuts, herbs are not included.
  • Milk: fresh (e.g., cow, goat, sheep), sweetened, concentrated, long-life, flavoured (e.g., chocolate, banana), plant milk (e.g., almond, soy, rice).
  • Eggs
  • Baby food: powdered, dry and/or wet form, intended for consumption by children. Snacks (e.g., chips, nuts, candies, chocolates, ice cream) are not included.
  • Baby and adult diapers
  • Products for feminine hygienic protection (tampons, sanitary pads and incontinence pads).
  • Coffee: unroasted, roasted beans, ground, powdered, instant, flavoured, caffeinated or decaffeinated in any package. Does not include ready-to-consume drinks or beverages which contain coffee and are consumed cold or hot.
  • Sugar: crystalline (white, brown, black), fine (powdered), coarse, cubed, in sachets.

As per the provisions of the VAT legislation, all businesses affected by the above change should perform a stock count before the new provisions come into effect.

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