Following an amendment to the Cyprus VAT Law (R.A.A. 354/2026), published in the Official Gazette on 30 September 2026, the temporary application of the 0% VAT rate on selected essential food products has been extended and expanded.
The amendment to the Fifth and Sixth Schedules of the Cyprus VAT Law (L.95(I)/2000) introduces additional food categories eligible for zero-rated VAT treatment.
Products covered from 1 October 2026 to 31 May 2027
The following products will continue to benefit from the temporary 0% VAT rate:
Meat products (fresh, chilled or frozen)
- Beef (CN codes 0201 and 0202)
- Swine meat (CN code 0203)
- Sheep and goat meat (CN code 0204)
- Edible offal of bovine animals, sheep and goats (CN code ex 0206)
- Poultry meat and edible offal (CN codes 0105 and ex 0207)
- Other meat and edible offal of rabbits and hares (CN code ex 0208)
Fish and seafood (fresh, chilled or frozen)
- Fish falling under CN codes 0302, 0303 and 0304
- Cuttlefish, squid and octopus (CN code 0307)
Additional products now included
The amendment also broadens the scope of the zero-rated VAT measure to cover the following essential food items for the period 12 October 2026 to 31 May 2027:
- Bread, excluding pastries and products containing added ingredients such as raisins, nuts or flavourings
- Milk
- Infant food, excluding snacks such as chips, nuts, sweets, chocolates, ice cream and yoghurts
- Coffee, excluding ready-to-drink coffee beverages consumed either hot or cold
- Sugar
What businesses should consider
Businesses operating in the food supply industry should review the updated product classifications and applicable effective dates to determine how the amended VAT treatment affects their transactions.
KSA remains available to assist with assessing the implications of these changes, reviewing the VAT treatment of affected products and addressing any related compliance or technical matters.
