Extension to the temporary application of the zero VAT rate for essential items

Written by Stelios Spiliotis
VAT
1 July, 2024

The Department of Taxation of Cyprus has announced that, according to the Ministerial Council’s decree dated June 28, 2024 (K.D.P. 231/2024), a zero VAT rate is imposed on the supply of certain essential goods until September 30, 2024. The affected goods are listed below:

1. Bread: All types of bread, whether fresh or frozen, with or without yeast (e.g., white, black, whole grain, multigrain, village bread, rye, cornbread, baguette, ciabatta, sliced bread, buns, pitas). Excluded are baked goods, dried bread, and any bread with added ingredients like raisins, nuts, or flavourings.

2. Milk: Fresh milk (e.g., cow’s milk, goat’s milk, sheep’s milk), condensed milk, evaporated milk, long-life milk, flavoured milk (e.g., chocolate, banana), plant-based milk (e.g., almond, soy, rice).

3. Eggs

4. Baby Food: In powder, dry, or liquid form intended for consumption by children. Snacks (e.g., chips, nuts, candies, chocolates, ice creams) are excluded.

5. Baby Diapers

6. Women’s Sanitary Products: Tampons, sanitary pads, and incontinence pads.

7. Adult Diapers

8. Coffee: Unroasted, roasted beans, ground, powder, instant coffee, flavoured coffee, with or without caffeine in any packaging. Ready-to-drink beverages or drinks made from coffee consumed hot or cold are excluded.

9. Sugar: Granulated (white, brown, black), powdered (icing sugar), coarse, in cubes, in sachets.

10. Meat: Fresh or preserved by simple refrigeration or frozen. Includes:

    – Beef (Commodity code SO 0201 and SO 0202)

    – Pork (Commodity code SO 0203)

    – Lamb or goat (Commodity code SO 0204)

    – Edible offal of bovine, porcine, ovine, or caprine animals (ex Commodity code SO 0206)

    – Poultry meat and edible offal of poultry (class 0105) (Commodity code SO 0207)

    – Rabbit or hare meat and edible offal of rabbits or hares (ex Commodity code SO 0208)

11. Fresh Vegetables: Fresh or preserved by simple refrigeration. Includes:

    – Tomatoes (Commodity code SO 0702)

    – Onions, shallots, garlic, leeks, and similar vegetables (Commodity code SO 0703)

    – Cabbages, cauliflowers, broccoli, curly cabbages, kohlrabi, Brussels sprouts, and similar edible products of the genus Brassica (Commodity code SO 0704)

    – Lettuce (Lactuca sativa) and chicory (Cichorium spp.) (Commodity code SO 0705)

    – Carrots, turnips, salad beets, salsify, celeriac, radishes, and similar edible roots (Commodity code SO 0706)

    – Cucumbers and gherkins (Commodity code SO 0707)

    – Leguminous vegetables, shelled or unshelled like peas and beans (Commodity code SO 0708)

-Other vegetables such as asparagus, eggplants, celery, mushrooms, truffles, peppers, spinach, artichokes, unprepared olives, pumpkins, zucchinis, other salads except lettuce (e.g., coriander, parsley, purslane), capers, fennel (Commodity code SO 0709)

The zero VAT rate for these items has been in effect from the following dates:

– Items 1-7 from May 5, 2023

– Items 8-9 from November 1, 2023

– Items 10-11 from December 1, 2023

We are available for any additional inquiries or clarifications you may require.

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