Cyprus will maintain zero VAT on essential goods, including baby products and fresh produce, throughout 2026, the Tax Department announced following a decree dated 21 November 2025.
The measure applies from 1 January through 31 December 2026 to specified product deliveries, according to the department. The government aims to support households and contain living costs amid increased inflationary pressures.
The zero-rate scheme covers baby and family care items, including baby milk in liquid form and powder, baby nappies, adult nappies, and feminine hygiene products such as tampons, sanitary pads and incontinence pads.
Fresh or chilled vegetables covered include potatoes, tomatoes, onions, garlic, leeks, cabbages, cauliflowers, broccoli, lettuces, chicory, carrots, radishes, cucumbers, peas and beans. The scheme also extends to aubergines, peppers, mushrooms, spinach, courgettes and other specified vegetables.
Fresh fruits under the zero-rate scheme include bananas, figs, avocados, citrus fruits, grapes, melons, watermelons, apples and pears. Seasonal fruits covered include apricots, peaches, cherries, nectarines, plums, strawberries and kiwis.
The Tax Department stressed the zero VAT applies exclusively to product categories specified in the decree and called on businesses to ensure full compliance with the provisions.