Global VAT & Indirect Tax News

Cyprus has extended the zero percent VAT rate on a range of essential items until 31 December 2026. The extension, announced by the Cyprus Tax Department on 15 January 2026, covers baby milk, diapers, feminine hygiene products, and certain fresh fruits and vegetables.

Cyprus has extended a zero VAT rate on essential fresh produce until the end of 2026. The measure, announced by the Tax Department following a decree dated 21 November 2025, applies from 1 January to 31 December 2026 and covers a specific list of vegetables and fruits. Businesses must comply with the decree’s provisions to qualify for the zero rate.

Cyprus has extended deadlines for VAT, VIES, and the Special Taxi Scheme to 20 January 2026, allowing submissions and payments without penalties. Businesses must be aware of the new penalties that will apply after this date. The extension covers VAT returns for the period ending 30 November 2025, VIES returns for December 2025, and the flat‑rate scheme for urban taxis from 1 July to 31 December 2025.

Cyprus Tax Agency extended the filing and payment deadline for certain VAT obligations to Jan. 20, 2026. The extension covers VAT returns for the period ended Nov. 30, 2025, VIES summary tables for December 2025, and flat‑rate declarations for the special urban taxi regime. Late filing may incur a 10% additional VAT and a €100 penalty.