Cyprus Extends 0% VAT on Essential Goods to December 2026

On 31 October 2025, the Cyprus government decided to extend the 0% VAT exemption for essential goods until December 2026. The decision was made in a cabinet meeting chaired by Finance Minister Makis Keravnos.

The exemption was originally set to expire in December 2025, but the cabinet approved an extension to lessen household spending and protect the purchasing power of vulnerable groups. The 0% VAT applies to infant formula, diapers, women's hygiene products, as well as fruits and vegetables.

Even though inflation was recorded at 0% in 2025, authorities consider the measure necessary to sustain living standards. The policy will be reviewed again at the end of 2026.