Update regarding the announcement issued by the Taxation Department on 17 November 2023 regarding the application of the zero rate on meat and vegetables with effect from 1 December, 2023.

vat and tax cyprus

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*.

*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 ΕΟ 0207)
Meat of rabbits or hares and edible offal by products of rabbits or hares (Class Code CN ext. 0208)

Clarification

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

200 Archiepiskopou Makariou III Avenue,
1st Floor, Office 102,
2311 – Lakatamia, Nicosia, Cyprus

T: +357 22276000 | F: +357 22270807

[email protected] | www.mcmillanwoods.com.cy

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