Zero VAT on basic products from 1 November

12:27 - 31 October 2023

Economy

The government’s new zero VAT relief measures come into effect as of 1 November, covering a number of items that had zero VAT since last May, with the addition of sugar and coffee.

In an announcement, the Tax Department said that the cabinet meeting on 13 September amended the earlier VAT legislation from 5 May, so that a zero rate is imposed on these basic items from 1 November 2023 to 30 April 2024.

The items in question are as follows:

Bread: all kinds, fresh or frozen, with or without sourdough. Pastries, dried goods and bread with additional ingredients such as raisins, nuts, or herbs are excluded.

Eggs and milk: fresh cows’, goats’, sheep’s, sweetened, condensed, long-life, flavoured milk, and plant milk (almond, soy, rice).

Nappies and baby food: powder, dry or liquid form, intended for consumption by children. Snacks (e.g. chips, nuts, candies, chocolates, ice creams) are not included.

Adult diapers and feminine hygiene products: tampons, sanitary pads and incontinence pads.

Coffee: unroasted and roasted beans, powdered, instant, flavoured, caffeinated or decaffeinated. Not included are include ready-made drinks or beverages that have coffee as a raw material.

Sugar: crystalline (white, brown, black), fine (powdered), coarse, cubed, in sachets.

Zero VAT on basic products from 1 November

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