Temporary application of the zero VAT Rate on specific products

On 27 March 2026, the Council of Ministers decided the temporary application of the zero VAT rate on additional goods which were previously subject to the reduced VAT rate of 5% (Κ.Δ.Π. 168/2026).

The zero VAT rate shall apply to the specific goods for the period from 6 April 2026 to 30 September 2026.

The goods subject to the zero VAT rate include:

• Fresh, chilled or frozen meat as well as edible offal of various animals; and
• Fish and certain seafood products.

Please refer to the Notification issued by the Tax Department for further details. 

It should be noted that, in accordance with the provisions of Regulation Κ.Δ.Π. 259/2004, in cases where there is a change in the applicable VAT rates, taxable persons are required to perform a stock count of the goods affected by such change.

The stock count must be carried out on the day preceding the effective date of the rate change and should include both a quantitative count and the corresponding valuation of the relevant goods.

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.