Some food products are theoretically expected to become cheaper, while inexpensive goods from China will become more expensive. What else will change in our lives?
VAT on Basic Products Decreases
Starting from July 1, Latvia will launch a one-year experimental pilot project (until June 30, 2027).
What it entails: the value-added tax rate on four main groups of Latvian products will decrease from 21% to 12%.
This reduction applies to all types of bread, milk (cow, goat, sheep, including lactose-free), fresh chilled poultry meat (chicken, turkey, duck, etc.), and chicken eggs.
According to calculations by the Consumer Rights Protection Center (CRPC), due to the tax reduction, real prices on store shelves for these products should decrease by approximately 7.4%.
In this regard, the CRPC advises consumers: pay attention to price tags and receipts in stores: "When purchasing, make sure that the reduced tax rate is indicated on the receipt. It should also apply to promotional products if they fall into the specified groups of goods."
Stricter Rules for Child Benefit Payments
A residency condition has been introduced: starting from July 1, parental benefits will NOT be paid (even if already assigned) if the child does NOT permanently reside in Latvia and their place of residence is NOT in one of the European Union member states, a member state of the European Economic Area, or the Swiss Confederation; for example, if the child resides in Uzbekistan, India, Canada, or the United States.
What does "residing in Latvia" mean according to the law? As explained by the State Social Insurance Agency (SSIA), it refers to a child who has been assigned a personal identification number, whose status is active in the Register of Natural Persons, and who permanently resides in the territory of Latvia.
These conditions apply regardless of the citizenship of the child or parent.
Thus, Latvian citizens who have moved with their children to live permanently in third countries (for example, Asia, Russia, or America) will lose the right to this benefit.
If the child and the other parent reside or work in another EU member state, the Swiss Confederation, or a country in the European Economic Area, the parental benefit is provided and paid.
Regarding the reasons for this innovation. During discussions of the amendments, a trend was noted: fathers of children who are citizens of third countries, who were issued temporary residence permits in Latvia, were applying for parental benefits. Meanwhile, the children were born and living with their mother in a third country.
In this regard, amendments to the law "On Insurance for Pregnancy and Illness" were adopted.
Until now, the law did not provide for restrictions that would prevent the continuation of benefit payments after the expiration of the temporary residence permit if the recipient left Latvia or even continued to work in another country.
Water Tariffs Rise in the Riga Region
In certain areas near Riga, water supply and sewage tariffs will double.
What happened: starting from July 1, 2026, unified tariffs for water management services will be introduced for all customers of Mārupes komunālie pakalpojumi LLC in Marupe.
How the tariffs will change: for water supply - €0.78 per cubic meter, and for sewage services - €2.16 per cubic meter.
Previously, tariffs for water supply and sewage services varied significantly across different service areas of the enterprise.
Thus, in Jaunmarupe, Tiraina, and Vetre of the Marupe municipality, the fee for water management services will decrease by 22.8%.
In turn, in Babite municipality and the village of Spunciems in Salaspils municipality, the current fee for water supply is only €0.55 per cubic meter, and for sewage - €0.88 per cubic meter. This means: here the tariff will double.
In the village of Spilve in Babite municipality, the current tariff for sewage services is €0.94 per cubic meter, and it will increase by 2.3 times.
Disabled Individuals Will Be Warned About Status Expiration
Starting from July 1, the State Medical Commission for Health and Working Capacity Assessment (Commission, VDEĀVK) will send reminders about the expiration of disability status.
In the future, disabled individuals will receive reminders about the approaching end of their status so that they can prepare and, if necessary, timely submit the required documents to the Commission for reconsideration of their disability.
Reminders should be sent twice:
- first — 90 days before the expiration of disability;
- again — 45 days before the expiration of disability.
Reminders will be automatically sent from the Disability Information System:
- to the official email address of the person, if it is activated;
- as well as to the email address indicated by the person in the disability assessment application.
The 75-Cent Surcharge for Cheap Medicines is Cancelled
Starting from July 1, medicines costing up to €10 will be exempt from pharmacy fees — customers in pharmacies will no longer have to pay an additional €0.75 for prescriptions for inexpensive medications.
The state will take on part of the costs of servicing prescriptions in pharmacies:
For non-reimbursable and reimbursable medicines, if the price of the package in the pharmacy does not exceed €10, the pharmacist's service fee (€0.75) will now be fully covered by the state.
There will also be discounts in several cases for pregnant women and young mothers.
Starting from July 1, pregnant women and women within 70 days after childbirth will be exempt from the pharmacist's service fee when purchasing medicines from the "M" list (for specific diagnoses) if the cost of the package is less than €10.
A Tourist Tax is Introduced in Kuldiga
Following the flagship Latvian tourism destinations, starting from July 1 this year, the small town of Kuldiga will also introduce a municipal fee for accommodating vacationers and tourists.
Its amount is €1.50 per person for each night spent, but not more than €15 for one continuous stay. The fee will not apply to residents registered in the region and individuals under 18 years of age, nor will it apply to business trips and work-related travel.
The local government believes that the sums generated by this fee will contribute to the sustainable development of tourism in Kuldiga. After all, the old town of Kuldiga, included in the UNESCO World Heritage List, "is a significant cultural and tourist destination in Latvia."
A Tax on Cheap Packages is Introduced
A tax of €3 is introduced on purchases from online stores (Temu, AliExpress, etc.)
This concerns inexpensive goods from three countries, primarily from China.
What to consider: this €3 is not for the entire package, but for each item in it. Or, in the language of fiscal officials, for each "item in the package."
That is: if there are different items in one package (for example, a t-shirt and a pair of shoes), the €3 tax will have to be paid for each item separately.
Identical items (for example, a pack of identical socks) are considered one item.
The basis for these changes: a new EU regulation comes into force, completely changing the customs clearance process for packages from non-EU countries (China, the USA, the UK, etc.).
As a result, the previous exemption that exempted packages worth up to €150 from customs duties is completely annulled.
Exceptions: the new rules do not apply to packages from EU countries, non-commercial gifts from private individuals worth up to €45, as well as packages worth over €150 (for them, the old standard clearance procedure applies).
What to keep in mind: the new €3 duty will only apply to goods purchased DIRECTLY from third countries.
If, however, the online store is registered outside the European Union (EU), but the goods are physically shipped from a warehouse located in the EU, they have already passed customs clearance there, and no additional fees will apply.
And one more thing. Any such changes become a basis for new tricks by fraudsters. Beware of fake emails and SMS from bogus postal workers demanding duty payments.
