Zero VAT extended to food staples

Bread, baby food, coffee, milk, meat and sugar will be subject to a zero VAT rate from October following the approval of a relevant decree by the Council of Ministers. According to the tax department, the zero rate will apply to frozen or chilled meat products from October 1, 2026, until May 31, 2027. These will include beef, pork, sheep and goat meat. Processed meat products, including marinated and smoked meats, sheftalia, chicken nuggets and sausages, will continue to be subject to the existing reduced VAT rate. The zero VAT measure will be extended to other products from October 12, 2026, and will remain in effect until May 31, 2027. These products include fresh and frozen bread; fresh, condensed and plant-based milk; roasted and unroasted coffee beans and ground coffee; sugar; and dry and liquid baby food. Ready-made drinks such as takeaway coffee, snacks including crisps and sweets, and pastries will continue to be subject to the regular VAT rate.