On October 26, 2026, The Cypriot Tax Department announced that the application of the zero VAT rate applicable to certain essential goods will be extended through December 31, 2027. This latest extension was enacted through K.D.P. 362/2026, a Council of Ministers decree dated October 16, 2026. The measure will apply from January 1, 2027 through December 31, 2027.
The zero VAT rate applies to supplies of the following essential goods:
-
Baby milk, in liquid and powder form;
-
Baby and adult diapers, including incontinence pads;
-
Feminine hygiene products, including tampons and sanitary towels;
-
Certain fresh or chilled vegetables, including potatoes, tomatoes, onions, garlic, lettuce, carrots, cucumbers, legumes, eggplants, peppers, spinach, mushrooms, pumpkins, zucchini, and certain other vegetables; and
-
Certain fresh fruits, including bananas, figs, avocados, citrus fruits, grapes, melons, watermelons, apples, pears, apricots, peaches, cherries, nectarines, plums, strawberries, and kiwifruit.
