On October 31, 2023, the Tax Department announced a new measure introducing a zero VAT rate on a range of essential items, effective from November 4, 2024, through December 31, 2025. This initiative is aimed at reducing the financial burden on consumers for key everyday products, impacting both individual consumers and businesses handling these items.
List of Items Under Zero VAT Rate:
- Baby milk (liquid and powder)
- Diapers (for children and adults)
- Feminine hygiene products (tampons, sanitary and incontinence pads)
- Fresh or chilled vegetables
- Potatoes, tomatoes
- Garlic, onions, leeks, and similar vegetables
- Broccoli, cabbage, cauliflower
- Lettuce (Lactuca sativa) and radishes (Cichorium spp.)
- Carrots, salad radishes, turnips, and similar edible roots
- Cucumbers
- Beans and peas (leguminous vegetables, with or without pods)
- Eggplants, celery, mushrooms, peppers, spinach, pumpkins, capers
- Bananas, figs
- Citrus fruits (oranges, tangerines, clementines, grapefruits, lemons)
- Grapes, watermelons, melons
- Apples, pears
- Stone fruits (apricots, peaches, cherries, plums, nectarines)
- Strawberries
Implications for Businesses and Consumers
This zero VAT rate presents significant opportunities for local businesses engaged in the distribution of these goods, from retailers to importers, to streamline cost efficiencies and enhance affordability. As companies prepare to adjust pricing structures, it’s crucial to ensure compliance and accurate documentation to fully leverage the benefits of this tax relief.
At Eurofast, we offer comprehensive support to help businesses navigate the new VAT requirements seamlessly. Our tax experts are available to assist with compliance, documentation, and strategic planning, ensuring that businesses capitalize on this tax reduction efficiently.
For further information on how Eurofast can assist with the zero VAT rate compliance and other tax services, contact us at nicosia@eurofast.eu.