Application of the zero VAT rate to specified goods until 31 May 2027

On 30 September 2026, the Council of Ministers approved the temporary application of the zero VAT rate to certain essential goods under Decree Ê. Ä. Ð. 354/2026.

The zero VAT rate applies to the following goods for the periods set out below:

From 1 October 2026 to 31 May 2027

• Fresh, chilled or frozen meat and edible meat offal.  
• Fresh, chilled or frozen fish as well as cuttlefish, squid and octopus

From 12 October 2026 to 31 May 2027

• Bread
• Milk
• Coffee
• Sugar
• Baby food

For further details on the goods covered, please refer to the relevant announcement issued by the Cyprus Tax Department, available here: ΦΠΑ ΣΕ ΒΑΣΙΚΑ ΕΙΔΗ

Stock count requirements

Under Regulation Ê.Ä.Ð. 259/2004, taxable persons are required to carry out a stock count of the affected goods when the applicable VAT rate changes. The stock count must be carried out on the day preceding the effective date of the change and must record both the quantities and the corresponding value of the goods held.

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.