Cyprus will continue applying a zero rate of Value Added Tax on a range of essential goods throughout 2026, following a decision by the Council of Ministers. The measure, announced by the Tax Department, is intended to support households and help stabilise the cost of living during the coming year.
Zero VAT For The Entire Year
According to the announcement, the zero VAT rate will apply from 1 January to 31 December 2026, based on a Cabinet Decree dated 21 November 2025 (C.D.P. 337/2025). The measure covers specific categories of products only, as defined in the decree.
Baby Care And Hygiene Products
The zero VAT rate will continue to apply to key care and hygiene items, including:
- Infant milk, both liquid and powdered
- Baby nappies
- Adult nappies
- Feminine hygiene products, such as: Tampons, Sanitary towels, Incontinence pads
Fresh And Chilled Vegetables
A wide range of fresh or simply chilled vegetables remains covered by the measure, including:
- Potatoes
- Tomatoes
- Onions, garlic and leeks
- Cabbage, cauliflower and broccoli
- Lettuce and chicory
- Carrots and radishes
- Cucumbers
- Legumes such as peas and beans
- Other vegetables, including aubergines, peppers, mushrooms, spinach, pumpkins and courgettes
Fresh Fruit Selection
Zero VAT will also apply to fresh fruit, including:
- Bananas, figs and avocados
- Citrus fruits
- Grapes
- Melons and watermelons
- Apples and pears
- Seasonal fruit such as apricots, peaches, cherries, nectarines, plums, strawberries and kiwifruit
The Tax Department stresses that the zero VAT rate applies exclusively to the product categories listed in the decree and urges all economic operators to fully comply with the relevant provisions.
The continuation of the measure is part of broader efforts to shield consumers from rising prices and support household budgets throughout 2026.