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Cyprus extends VAT cut on essentials to 30 June 2024

Despite drop in peak inflation, government extends for second time VAT cut on essentials until 30 June 2024

The Cypriot Council of Ministers has now approved a two-month extension to the temporary reduction in the reduced 5% and standard 19% rates on certain essential goods. The rate cut was due to end on 30 April 2024. This is the second delay in returning the VAT rate – the last was in October 2023.

Cypriot inflation has now come off the 10.6% peak from July last year, and is now just 1.5% in July 2023. However, persistent rises on food – still at over 20% – has prompted the government to rollover zero-rating of certain essentials.

Other European inflation VAT cuts are common following inflationary disruptions to supply chains and the Russian invasion of Ukraine.

Goods subject to the cut include:

5% to zero:

  • milk;
  • bread;
  • eggs; and
  • baby food.

19% to 5%:

  • detergents,
  • fabric softeners,
  • toilet paper,
  • baby diapers,
  • cleaning supplies; and
  • adult diapers.


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