Pursuant to the Council of Ministers’ Decree dated 16 October 2026 (R.A.A. 362/2026), the application of the zero VAT rate on supplies of certain essential goods is extended for the period from 1 January 2027 until 31 December 2027, as follows:
- Baby Milk (liquid and powdered).
- Baby and Adult Diapers (Including incontinence pads).
- Women’s Hygiene Protection Products (Tampons and sanitary towels).
- Fresh or Chilled Vegetables
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- Potatoes (CN code ex 0701)
- Tomatoes (CN code 0702)
- Onions, shallots, garlic, leeks and other similar vegetables (CN code 0703)
- Cabbages, cauliflowers and broccoli, kale and kohlrabi (CN code ex 0704)
- Lettuce (Lactuca sativa) and chicory (Cichorium spp.) (CN code 0705)
- Carrots, turnips, beetroot, salsify, celeriac, radishes and similar edible roots (CN code 0706)
- Cucumbers and gherkins (CN code 0707)
- Leguminous vegetables, whether or not shelled, such as peas and beans (CN code 0708)
- Aubergines, celery, mushrooms, peppers, spinach, artichokes, unprepared olives, pumpkins, courgettes, other salad vegetables excluding lettuce (coriander, parsley, purslane, rocket and cabbages), capers and fennel (CN code ex 0709)
- Fresh Fruit
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- Bananas (CN code ex 0803)
- Figs and avocados (CN code ex 0804)
- Citrus fruit (oranges, mandarins, clementines, pomelos, grapefruits, lemons and limes) (CN code ex 0805)
- Grapes (CN code ex 0806)
- Melons and watermelons (CN code ex 0807)
- Apples and pears (CN code ex 0808)
- Apricots, peaches, cherries, nectarines and plums (CN code ex 0809)
- Strawberries and kiwifruit (CN code ex 0810)
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.
Kind regards,
