Cyprus to Apply Zero Per Cent (0%) VAT on Basic Items
On May 2, 2023, the Cyprus Council of Ministers (Cabinet) approved a Decree to amend the VAT legislation to apply zero (0%) per cent VAT rate on certain consumer goods to reduce the negative impact of price hikes on consumers.
A zero rate of VAT will be imposed on certain basic items such as bread, milk, eggs, baby food and other personal hygiene items.
The measures are temporary and will apply from the date of publication of the decree (which is expected to be Friday, May 5 2023) until October 31, 2023.
The purpose of the measures is to relieve households in dealing with the increased prices of basic products.
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