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Cyprus Provides Temporary Zero VAT Rate for Basic Goods and Extends Zero Rate for COVID Tests and Vaccines

11 May 2023

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Approved Changes

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Cyprus

The Cyprus Tax Department has announced the temporary application of the zero VAT rate on basic goods, which was approved by the Council of Ministers on 2 May 2023. The zero rate applies for all types of bread, milk, eggs, baby food, baby diapers, feminine hygiene products, and adult diapers until 31 October 2023. The Cyprus Tax Department has also announced the extension of the zero VAT rate on COVID-19 in-vitro diagnostic tests and related services and COVID-19 vaccines. Previously applied until 31 March 2023, the zero rate was further extended from 1 April to 31 May 2023.