Cyprus has introduced temporary zero VAT rates on fresh meat, fish, bread, milk, coffee, sugar, and baby food, with the measures taking effect in October 2026 and remaining in place until 31 May 2027.
The Cyprus Taxation Department, in a release on 2 October 2026, announced a temporary reduction in value-added tax on basic food items and staples, effective from different dates through 31 May 2027.
The decision follows Decree K.D.P. 354/2026, published in the Official Gazette of the Republic (Gazette III Part I, No. 6050, dated 30 September 2026) by order of the Council of Ministers.
Fresh meat and fish: zero VAT from 1 October
Starting 1 October 2026, all fresh, chilled, and frozen meat becomes subject to zero VAT. This applies to beef (CN codes 0201 and 0202), pork (CN code 0203), and lamb and goat meat (CN code 0204). Poultry and rabbit meat also qualify (CN codes 0207 and ex 0208), as do edible offal from these animals (CN code ex 0206).
Fresh and frozen fish products receive the same zero rate, covering standard fish varieties (CN codes 0302, 0303, and 0304) as well as cuttlefish, squid, and octopus (CN code ex 0307).
An important distinction: processed meat and fish remain taxed at 5%. This includes marinated meats, smoked varieties, sausages, canned fish, breaded fish, and similar prepared items.
Bread, milk, coffee, sugar, and baby food: zero VAT from 12 October
A second set of basic items enters the zero VAT zone on 12 October 2026. All fresh or frozen bread qualifies, including white, black, wholemeal, multigrain, and speciality types like baguettes and ciabatta. The exemption excludes pastries, dried bread, and breads with added ingredients such as nuts or raisins.
Milk products eligible for zero VAT encompass cow’s milk, goat’s milk, sheep’s milk, condensed varieties, long-life milk, and plant-based alternatives like almond and soy milk. Instant coffee, roasted beans, ground coffee, and powdered varieties all receive zero VAT, but ready-made coffee drinks remain outside this measure.
Sugar in all forms enters the zero-rate category: granulated, icing, coarse, cubes, and individual sachets. Baby food in powder, dry, or liquid form also qualifies. Snacks such as chocolate, ice cream, and yoghurt remain unaffected by the tax change.
All these provisions end on 31 May 2027.
