Northern Cyprus has temporarily reduced VAT on all fuel products to 0% under the 2025 VAT Rates (Amendment) Regulation, following a Council of Ministers decision published on 18 March 2025. The change covers unleaded petrol, diesel, kerosene, fuel oil and aviation fuel, and is accompanied by a cap on importer and dealer margins at 7.25 TL per litre to curb inflation driven by the Iran conflict.
Northern Cyprus applies a zero percent VAT rate to all fuel products under the 2025 VAT Rates (Amendment) Regulation.
The zero VAT rate covers unleaded petrol, euro diesel, diesel, kerosene, fuel oil and aviation fuel.
Fuel importers and dealers are subject to a margin cap of 7.25 Turkish Lira per litre.
The decision was published in the Official Gazette on 18 March 2025.
No, the VAT reduction is temporary.
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