Regulatory updates - Cyprus

The Cyprus Tax Department has announced an extension of the temporary zero VAT rate for specified basic goods under Decree K.D.P. 354/2026, published in the Official Gazette of the Republic of Cyprus on September 30, 2026. The Decree amends the VAT Law by extending the zero VAT rate on specified basic items and adding certain food items.

• From October 1, 2026, through May 31, 2027: the zero rate applies to specified fresh, chilled, or frozen meat, fish, cuttlefish, squid, and octopus.
• From October 12, 2026, through May 31, 2027: the zero rate will also apply to specified bread, milk, coffee, sugar, and baby food.

The measure is limited to the goods specifically described in the Decree. Certain specified prepared or processed meat and fish products remain subject to the applicable reduced five percent VAT rate.

Businesses affected by this change should review product classifications and update invoicing, pricing, and VAT reporting systems for the relevant effective dates.

The Government of Cyprus notice provides a detailed product list, including the relevant Combined Nomenclature (CN) codes.

Temporary VAT Treatment

Under Decree K.D.P. 168/2026, published in the Official Gazette of the Republic on March 27, 2026, zero rate applies to supplies of the following products:

Fresh, chilled or frozen meat products:

• Meat of bovine animals (CN codes 0201 and 0202)
• Meat of swine (CN code 0203)
• Meat of sheep or goats (CN code 0204)
• Edible offal of bovine animals, swine, sheep, and goats (CN code ex 0206)
• Meat and edible offal of poultry (CN code 0207)
• Meat and edible offal of rabbits and hares (CN code ex 0208)

Fresh, chilled or frozen fish and seafood products:

• Fish (CN codes 0302, 0303 and 0304)
• Cuttlefish, squid, and octopus (CN code 0307)

Note: The zero rate does not apply to all meat and fish products. Prepared and processed products such as burgers, sausages, smoked, breaded, canned, or marinated fish remain subject to the standard five percent VAT rate.

• Decree No. 337/2025 extends the application of the zero VAT rate on certain basic goods, such as sanitary products and specific fruits and vegetables, until December 31, 2026.
• Decree No. 364/2025 lowers the VAT rate from 19% to 5% for construction and renovation projects involving public and private buildings used for VAT-exempt educational activities by institutions e.g. public educational organizations or private schools.