Filenews 22 September 2023
The decree of the Council of Ministers was published in the Official Gazette of the Republic, according to which VAT on coffee and sugar will be reduced to zero as of November 1.
A few days ago, in an announcement, the Department of Taxation had clarified that from November 1, 2023 until April 30, 2024, that zero VAT will apply to the following categories of coffee and sugar:
•Coffee: Unroasted, roasted, ground, powdered, instant, flavoured, decaffeinated. It is clarified that "it does not include ready-made drinks or beverages that have coffee as raw material, consumed cold or hot".
• Sugar: Crystalline (white, brown, black), fine (powdered), coarse, diced, in sachets.
At the same time, the decree clarifies that for the remaining seven categories the application of zero VAT is extended until the end of April 2024. The measure was implemented on May 5 and will be in place until the end of October. That is why the extension was granted. The seven categories in which zero VAT is in force are:
• Bread: all types of bread fresh or frozen with or without sourdough (e.g. white, black, whole grain, multigrain, rustic, rye, cornbread, baguette, ciabatta, sliced bread, loaves, pies). Pastries, dried and any bread with added ingredients such as raisins, nuts, herbs are not included.
• Milk: fresh milk (e.g. cow, goat, mutton), sweetened, concentrated, long-lasting, flavoured milk (e.g. chocolate, banana), vegetable milk (e.g. almond, soy, rice)
•Eggs
• Baby food: powdered, dry or wet and intended for consumption by children. Snacks (e.g. chips, nuts, candies, chocolates, ice cream) are not included.
• Baby diapers.
• Products for feminine hygiene protection (tampons, sanitary napkins and incontinence pads)
. • Adult diapers
