Zero Rate on Coffee & Sugar with Effect from 1 November 2023

vat cyprus

Following the issuance of a Decree by the Council of Ministers, the VAT Act was amended so that the zero VAT rate applies on two more supplies of basic items (coffee and sugar) effective from 1 November, 2023 to 30 April, 2024.

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

As mentioned above, the two new basic items that will be subject to the zero rate from 1/11/2023 to 30/4/2024 are coffee and sugar.

According to the announcement, the two new products are defined as follows:

(a) Coffee: Unroasted, roasted beans, ground, powdered, instant coffee, flavoured coffee, caffeinated or decaffeinated in any

It does not include ready-made drinks or coffee-based drinks that are consumed cold or hot.

Comment: Therefore, are not subject to the zero VAT rate, ready-made coffees purchased from supermarkets or kiosks, as well as coffees prepared by coffee shops or other premises that offer coffee to their customers for consumption outside the premises.

(b) Sugar: crystalline, (white, brown, black), fine (dust), in cubes and in sachets

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