Tax Department announces zero VAT on basic items from October 2026

The Employers and Industrialists Federation informs that the Tax Department issued a circular regarding the implementation of a zero VAT rate on specific basic items, based on Decree K.D.P. 354/2026, published in the Official Gazette of the Republic (E.U. Par. III Part I, No. 6050, 30.9.2026).

The zero VAT rate applies from October 1, 2026 to May 31, 2027 for the following items:

• Meat (fresh, chilled, or frozen): bovine, swine, ovine, caprine, poultry, rabbits, and offal, with specific CN codes listed in the announcement.
• Fish (fresh, chilled, or frozen): fish, cuttlefish, squid, octopus, with specific CN codes listed.

Meat and fish preparations such as marinated, smoked, or breaded products are still subject to a reduced VAT rate of 5%.

From October 12, 2026, to May 31, 2027, the zero VAT rate applies to:

• All types of fresh or frozen bread, excluding pastries, dried bread, or bread with added ingredients.
• Various types of milk, including fresh, condensed, long-lasting, flavored, and plant-based milk.
• All forms of coffee, including unroasted, roasted, ground, instant, flavored, caffeinated, or decaffeinated.
• Sugar in various forms, including crystalline, powdered, coarse, diced, or in sachets.
• Baby food, both powdered/dry and wet, intended for children, excluding snacks like chips, nuts, candies, chocolates, ice cream, and yogurts.
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