Tax Department announces zero VAT rate on basic items from October 2026 to May 2027

The Employers and Industrialists Federation informs that the Tax Department has issued a circular 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), amending the Value Added Tax Law.

A zero VAT rate is imposed on the following basic items from October 1, 2026, to May 31, 2027:

• Meat (fresh, chilled, or frozen): bovine, swine, ovine, caprine, poultry, rabbit, and hare, with specific CN codes listed. Meat preparations like marinated meats, sausages, and burgers remain at 5% VAT.
• Fish (fresh, chilled, or frozen): including cuttlefish, squid, and octopus. Fish preparations such as canned, smoked, or marinated are still taxed at 5%.

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

• Bread: all types of fresh or frozen bread without added ingredients or pastries.
• Milk: all types of fresh, long-lasting, flavored, or plant-based milk.
• Coffee: all forms including unroasted, roasted, ground, instant, flavored, caffeinated, or decaffeinated.
• Sugar: crystalline, powdered, coarse, or in sachets.
• Baby food: powdered, dry, or wet food for children; snacks are excluded.

More information is available on the official announcement page.