May 4, 2023
Cyprus adopts temporary VAT exemption of essential goods
Council of Ministers adopted A Decree on 2nd May 2023 modifying the VAT Law to impose a 0% VAT rate on a range of essential goods, including bread, milk, eggs, baby food and certain hygiene items.
Quoting the relevant statement made by the Ministry of Finance, “The measures are aimed at relieving households which face higher prices for essential products, brought about by external factors caused by the increases globally and the constant crises afflicting economies and adversely impacting supply chains.”
The temporary VAT decrease on specified product categories will be in effect from the date the Decree is published in the Official Gazette of the Republic of Cyprus, until 31st October 2023.
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