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Cyprus: Update By The Taxation Department

By Doing Business International | April 14, 2024

Cyprus: Update On 17 November 2023 Regarding The Application Of The Zero Rate On Meat And Vegetables With Effect From 1 December, 2023


Following the issuance of a Decree by the Council of Ministers, the VAT Act was amended so that the zero VAT rate applies to two more supplies of basic items (meat and vegetables) classified in specific tariff class codes effective as of 1 December 2023 to 31 May, 2024.


It is recalled that in addition to meat and vegetables, the zero rate is already imposed on (a) bread, (b) milk, (c) eggs, (d) baby food, (e) baby diapers, (g) feminine protection products (h) adult diapers and (i) coffee and sugar*.



Re-posted & Published by our partners: www.mcmillanwoods.com.cy


*For the above products we refer you to the previous issued by McMillan Woods Cyprus Ltd on 4 May 2023 and 1 October 2023 respectively.


As mentioned above, the two new basic items that will be subject to the zero rate from 1/12/2023 to 31/5/2024 are meat and vegetables.


According to the announcement, the two new products include the following:


A. Fresh or chilled or frozen meats



























Type
Cattle meat (Class Codes CN 0201 and CN 0202)
Pork meat (Class Code CN 0203).
Sheep and goat meat (Class Code CN 0204)
By products of edible offal of cattle, pork, sheep and goats (Class Code CN 0206 ext.)
Poultry meat and edible offal byproducts of class 015 (Class Code ?? 0207)
Meat of rabbits or hares and edible offal by products of rabbits or hares (Class Code CN ext. 0208)


Clarifications


Meat containing other supplements such as cheese and bacon, bread cramp, etc. are not subject to the zero rate. Pure meat without any additives or processing is subject to the zero rate.


 


B. Fresh or chilled vegetables

































Type
Tomatoes (Class Code CN 0702)
Onions, shallots, garlic, leeks and other similar vegetables (Class Code CN 0703)
Cabbage, cauliflower and broccoli, collards, turnips, Brussels sprouts and similar products of the genus Brasica (Class Code CN 0704)
Lettuce, (Lactuca Sativa) and radishes (Cichorium spp) (Class Code CN 0705).
Carrots, turnips, radishes for salad, hare grass, radish celery and similar edible roots (Class Code CN 0706)
Cucumbers and gherkins (Class Code CN ext. 0707)
Leguminous vegetables, with or without pods like peas, beans (Class Code CN ext. 0708)
Other vegetables such as asparagus, eggplants, celery, mushrooms, truffles, peppers, spinach, artichokes, unprepared olives, pumpkins, salad pumpkins other than lettuce (e.g. cilantro, parsley, glistrida), capers, fennel (Class Code CN ext. 0709)


Clarifications


(a) Vegetables do not include frozen vegetables


(b) Ready made salads are not included


(c) Includes packaged salad greens


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.


Conclusion


In conclusion, the recent amendment to the VAT Act in Cyprus, effective from December 1, 2023, to May 31, 2024, marks a significant development in the fiscal policies affecting essential food items. By extending the zero VAT rate to include fresh meats and vegetables, this policy aims to alleviate some of the cost pressures on Cypriot households. As consumers prepare to adjust to these changes, it is crucial to note that only specific categories of meat and vegetables, as outlined by their respective class codes, will benefit from this tax relief. For further details or specific queries, consulting with a tax professional is recommended to understand how these changes may impact individual or business finances. This proactive approach ensures compliance and maximizes the benefits from the amended tax regulations.

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