On 2 May 2023 the Council of
Ministers of the Republic of Cyprus approved a Decree which amends the VAT Law
in order to provide for a zero rate of VAT on supplies of specific items. This
measure is temporary and will be effective from the date the Decree will be published
in the Official Gazette (5 May 2023) until 31 October 2023.
The zero rate of VAT will
apply to the following items:
- Bread: all types of bread,
fresh or frozen, with or without sourdough (e.g., white, black, wholegrain,
multigrain, rustic, rye, cornbread, baguette, ciabatta, sliced bread, loaves,
bread rolls, pittas). Pastries, rusks and any bread with added ingredients such
as raisins, nuts, herbs are not included.
- Milk: fresh (e.g., cow, goat,
sheep), sweetened, concentrated, long-life, flavoured (e.g., chocolate,
banana), plant milk (e.g., almond, soy, rice).
- Eggs
- Baby food: powdered, dry
and/or wet form, intended for consumption by children. Snacks (e.g., chips,
nuts, sweets, chocolates, ice cream) are not included.
- Baby and adult diapers
- Products for feminine hygienic
protection (tampons, sanitary pads and incontinence pads).
As per the provisions of the
VAT legislation, all businesses affected by the above change should perform a
stock count before the new provisions come into effect.
