ARTICLE
12 November 2024

Zero VAT Rate Imposed On Basic Items For The Period 4/11/2024 – 31/12/2025

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Eurofast

Contributor

Eurofast is a regional business advisory organisation employing local advisers in over 21 cities in South East Europe, Middle East & the Baltics. The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services.
On October 31, 2023, the Tax Department announced a new measure introducing a zero VAT rate on a range of essential items, effective from November 4, 2024, through December 31, 2025.
Cyprus Tax

On October 31, 2023, the Tax Department announced a new measure introducing a zero VAT rate on a range of essential items, effective from November 4, 2024, through December 31, 2025. This initiative is aimed at reducing the financial burden on consumers for key everyday products, impacting both individual consumers and businesses handling these items.

List of Items Under Zero VAT Rate:

  1. Baby milk (liquid and powder)
  2. Diapers (for children and adults)
  3. Feminine hygiene products (tampons, sanitary and incontinence pads)
  4. Fresh or chilled vegetables
  5. Potatoes, tomatoes
  6. Garlic, onions, leeks, and similar vegetables
  7. Broccoli, cabbage, cauliflower
  8. Lettuce (Lactuca sativa) and radishes (Cichorium spp.)
  9. Carrots, salad radishes, turnips, and similar edible roots
  10. Cucumbers
  11. Beans and peas (leguminous vegetables, with or without pods)
  12. Eggplants, celery, mushrooms, peppers, spinach, pumpkins, capers
  13. Bananas, figs
  14. Citrus fruits (oranges, tangerines, clementines, grapefruits, lemons)
  15. Grapes, watermelons, melons
  16. Apples, pears
  17. Stone fruits (apricots, peaches, cherries, plums, nectarines)
  18. Strawberries

Implications for Businesses and Consumers


This zero VAT rate presents significant opportunities for local businesses engaged in the distribution of these goods, from retailers to importers, to streamline cost efficiencies and enhance affordability. As companies prepare to adjust pricing structures, it's crucial to ensure compliance and accurate documentation to fully leverage the benefits of this tax relief.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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