Nicosia:Starting October 1, 2026, a zero VAT rate will be applied to meats. This measure will extend to bread, milk, baby food, coffee, and sugar beginning October 12, 2026, as stated by the Tax Department in a press release.

According to Cyprus News Agency, The recent decree, published in the Official Gazette of the Republic, amends the Value Added Tax Law following a Cabinet decision. From October 1, 2026, to May 31, 2027, zero VAT will be applicable to fresh or preserved meats, including refrigerated or frozen beef, pork, sheep, goat, and poultry, among others. However, processed meat products like marinated meats, smoked meats, and various sausages will remain subject to a reduced VAT rate of 5%.

Similarly, fish products, such as canned and smoked fish, will continue to be taxed at a reduced VAT rate of 5%.

From October 12, 2026, to May 31, 2027, zero VAT will also apply to all types of fresh or frozen bread, excluding baked goods with added ingredients such as raisins or nuts. The zero VAT rate will cover various types of milk, including fresh, sweetened, condensed, flavored, and plant-based options. Coffee in all its forms, except ready-to-drink beverages, will also benefit from this tax exemption.

Sugar, in its various forms, and baby food, whether in powder, dry, or liquid form, intended for children, will also be included in this zero VAT category. However, snacks such as chips, nuts, candies, and chocolates will not be included in the reduced VAT.