The extension of the zero-rate Value-Added Tax (VAT) to specific essential goods for another year, from January 1 through December 31, 2027, was announced by the Department of Taxation.
According to a statement from the Department, the extension is provided for in a Decree of the Council of Ministers dated October 16, 2026.
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The measure applies, among other things, to liquid and powdered infant formula, children’s diapers and adult diapers, including incontinence pads, as well as feminine hygiene products, such as tampons and sanitary pads.
The list of products that will continue to be subject to the zero VAT rate also includes fresh or chilled vegetables, as well as fresh fruit.
Specifically, vegetables include potatoes, tomatoes, onions, leeks, garlic, leeks, cabbage, cauliflower, broccoli, lettuce, radishes, carrots, turnips, cucumbers, peas, beans, eggplants, celery, mushrooms, peppers, spinach, artichokes, pumpkins, zucchini, and other related products specified in the Decree.
As for fresh fruits, the measure covers bananas, figs, avocados, and citrus fruits such as oranges, mandarins, clementines, tangerines, grapefruit, lemons, and sweet lemons, as well as grapes, melons, watermelons, apples, pears, apricots, peaches, cherries, nectarines, plums, strawberries, and kiwifruit.
The Tax Department clarifies that the extension of this measure applies for the period from January 1, 2027, through December 31, 2027, in accordance with the provisions of the relevant Decree.
Source: CNA
