Cyprus Extends 0% VAT Rate on Essential Goods Until End of 2026

Cyprus VAT Rate Changes 2026

The Cyprus Tax Department has officially confirmed the extension of the 0% VAT rate on a range of essential goods for an additional year, covering the period from 1 January 2026 to 31 December 2026.

Scope of the zero VAT rate

The extension was formally communicated by the Tax Department on 15 January 2026, forms part of the government’s ongoing policy to mitigate cost-of-living pressures and support households by reducing the VAT burden on basic necessities.

You can find the official announcement published by the authorities here.

Accordingto the official document shared by the authorities, the zero VAT rate will continue to apply to the supply of the following categories of essential goods:

Infant and hygiene products

• Infant milk (liquid and powder form)
• Baby nappies and adult nappies
• Female hygiene products, including sanitary pads and incontinence pads

Fresh vegetables (fresh or preserved by simple chilling)

Including, among others:

• Potatoes, tomatoes, onions, garlic, leeks
• Cabbages, cauliflowers, broccoli, lettuce and chicory
• Carrots, turnips, radishes and other edible roots
• Cucumbers, peas, beans, aubergines, peppers, spinach, courgettes and mushrooms

‍Fresh fruit

Including:

• Bananas, figs, avocados
• Citrus fruits (oranges, mandarins, lemons, grapefruits)
• Grapes, melons, watermelons
• Apples, pears, peaches, cherries, nectarines, plums
• Strawberries and kiwifruit

EU VAT Rates overview

VAT Rate Changes 2023

Cyprus announced the introduction of a new reduced VAT rate at 3% for certain supplies of goods and services that used to be at 5% VAT rate.

The new VAT rate of 3% applies from 21 July 2023 to the following supplies:

• Supplies of books, newspapers and magazines, including brochures and similar printed material, both in paper and electronic formats, unless the main purpose of the publication is advertising.
• Special equipment for disabled people consisting of talking books, special lifting devices, wheelchairs and other vehicles.
• Orthopedic goods and devices, and other similar medical equipment.
• Street cleaning, waste collection and waste treatment services.
• Entrance ticket for the first performance of theatrical, musical and dance performances.

Also, the following items will benefit from a zero VAT rate, starting the same date:

• Typewritters with Braille characters and special electronic typewrites.
• Armchair vehicles intended for the personal use by disabled people.

Finally, you shall consider the temporary measure to zero rate certain basic products until 31 October 2023:

• Foodstuffs: including bread, milk, eggs, baby food,
• Hygiene and personal care products: baby and adult diapers, products for feminine hygiene protection.

Have a look at our overview of VAT rates in Cyprus.