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12° Nicosia,
15 July, 2024
 

Zero VAT on essential goods until September 2024

Tax Department's initiative aims to alleviate consumer costs

Newsroom

Cyprus' Tax Department has announced a zero rate of Value Added Tax (VAT) on essential goods until September 30, 2024, following a decree issued by the Cabinet. This measure aims to alleviate financial burdens on consumers amid economic challenges.

In a statement released Tuesday, the Tax Department specified the categories eligible for the zero VAT rate:

- Bread: All types including fresh or frozen, with or without sourdough, such as white, black, wholemeal, multigrain, and others. Excludes bakery products and those with added ingredients like raisins or nuts.

- Milk: Covers fresh milk (cow's, goat's, sheep's), sweetened, condensed, long-life, flavored (e.g., chocolate, banana), and vegetable milk (e.g., almond, soya, rice).

- Eggs

- Baby Food: Powdered, dry, or liquid food intended for children, excluding snacks.

- Children's Nappies

- Feminine Hygiene Products: Includes tampons, sanitary pads, and incontinence pads.

- Adult Diapers

- Coffee: Encompasses unroasted, roasted, beans, ground, powdered, instant, flavored, caffeinated, or decaffeinated coffee in any form, excluding ready-to-drink beverages.

- Sugar: Crystalline (white, brown, black), fine (icing), coarse, cubed, sachets.

- Meat: Fresh or frozen including bovine, swine, sheep or goats, poultry, rabbits, and edible offal.

- Vegetables: Fresh or chilled, covering a variety from tomatoes, onions, and lettuce to cucumbers, leguminous vegetables, and others.

The Tax Department noted that the zero VAT rate has been effective since May 5, 2023, for some categories, and subsequently expanded on November 1, 2023, and December 1, 2023, for others.

The initiative aims to support consumers by reducing the cost burden on essential goods amidst ongoing economic challenges in Cyprus.

TAGS
Cyprus  |  economy  |  inflation

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