Application of the zero VAT rate on essential goods

On 31 October 2024, the Council of Ministers decided the reinstatement of the temporary application of the zero VAT rate on specific goods (349/2024) effective from 4 November 2024 until 31 December 2025. 

Goods falling under the zero VAT rate:

1. Baby milk
2. Diapers for infants
3. Adult diapers 
4. Women's hygiene products 
5. Fresh or chilled (not frozen) edible vegetables
6. Fresh fruits

For more details concerning the above goods please click here.

Should you require further clarifications concerning the above, please contact our trusted advisors in the Indirect Tax Department at KPMG Cyprus.

KPMG’s Indirect Tax team provides advice and assistance at the Cyprus and international level. We structure our effort to dovetail with your business issues and strategy. Our focus is on supplying value adding and pragmatic advice rather than just a list of recommendations.

Our tax professionals are able to review your company’s current tax position and provide relevant advice and planning on a range of green initiatives, indirect taxes, including VAT, customs duties and excise taxes (such as tax audits, reorganizations and acquisitions, etc.). Furthermore, we can help your company with its administrative obligations and contacts with administrative bodies.