Cyprus will maintain a zero value-added tax rate on essential goods, including fresh fruit and vegetables, throughout 2026. The Tax Department announced that the measure follows a decree dated 21 November 2025 and will apply from 1 January to 31 December 2026.
According to the Tax Department, the zero VAT rate applies only to specific product deliveries listed in the decree. The policy is intended to support households and limit living costs during a period of inflationary pressure.
The list of fresh or chilled vegetables covered by the measure includes potatoes, tomatoes, onions, garlic, leeks, cabbage, cauliflowers, broccoli, lettuces, chicory, carrots, radishes, cucumbers, peas, and beans. The scope also includes aubergines, peppers, mushrooms, spinach, courgettes, and other designated vegetables.
Fresh fruit included under the zero-rate scheme comprises bananas, figs, avocados, citrus fruits, grapes, melons, watermelons, apples, and pears. Seasonal fruits covered by the measure include apricots, peaches, cherries, nectarines, plums, strawberries, and kiwis.
The Tax Department stated that the zero VAT rate applies exclusively to the categories specified in the decree. Businesses supplying these products have been called on to ensure compliance with the provisions set out in the measure.
Source: Cyprus Philenews
