Cyprus implements zero VAT on essential food items

The Cyprus Tax Department has announced a temporary zero-rate VAT measure on several essential food products. Following a decision by the Council of Ministers, a decree has been published in the Official Gazette of the Republic to amend the Value Added Tax Law.

From October 1, 2026, until May 31, 2027, the zero VAT rate applies to fresh, chilled, or frozen meats, including beef, pork, sheep, goat, poultry, and rabbit, as well as edible by-products. However, processed meat products such as marinated, smoked, sausages, and burgers, along with certain fish products, will continue to be subject to a reduced 5% VAT rate.

Starting October 12, 2026, and lasting until May 31, 2027, the zero VAT rate will expand to include various types of bread (fresh or frozen, with or without sourdough), milk (fresh, condensed, or long-life), baby food, coffee, and sugar.