Cyprus has zero-rated VAT on meat, fish, bread and other basic foods

Decree K.D.P. 354/2026, published in the Official Gazette on 30 September 2026, reduces VAT to zero for a wide list of basic foods. The measure is introduced in two stages.

From 1 October 2026 the zero rate applies to fresh, chilled and frozen meat: beef, pork, lamb and goat, poultry, rabbit and hare meat, and edible offal. From 1 October it also covers fresh or frozen fish, squid, octopus and cuttlefish.

From 12 October 2026 the list expands to: bread of all kinds (fresh or frozen, including sourdough), milk (fresh, condensed, long-life, plant-based), coffee (beans, ground, instant), sugar in all forms and baby food, both powdered and liquid.

The measure applies to basic, minimally processed foods: ready-made and processed goods from the same list remain at the previous reduced rate of 5%.

• processed meat: marinated, smoked, sausages, burgers and similar semi-finished products;
• processed fish: canned, smoked and marinated fish;
• bakery products with additives that go beyond simple bread;
• flavoured dairy products, including drinking yoghurts;
• ready-to-drink coffee beverages and snack products.

The zero rate on basic foods is part of a broader package of seven measures against rising prices that the cabinet approved in September 2026. It also includes an extension of electricity subsidies for eligible categories of consumers, a cut in the tax on heating fuel, a reduction of VAT on solar panels from 19% to 9%, and a one-off payment of €200 to vulnerable groups.

Finance Minister Makis Keravnos explained the decision by the budget surplus and the reduction in public debt: in his words, these funds are “returned to society and citizens” in this concrete form.

The measure is explicitly described as temporary: the zero rate on meat and fish applies until 31 May 2027, and on the other goods also until 31 May 2027, starting from 12 October 2026. There are currently no official statements on an extension.

For businesses in Cyprus this means the need to apply the new rate correctly by product codes right now: an error in classifying a product as “basic” or “processed” (for example, between fresh meat and a meat semi-finished product) directly affects which VAT rate applies on sale.