Changes in value-added tax (VAT) rates for specific groups of goods must also be clearly defined in terms of implementation, said representatives of the Latvian Association of Booksellers (LGTA), commenting on the intention to apply a VAT rate of 21% to books that are not published in the languages of Latvia, EU member states, or the Organisation for Economic Co-operation and Development (OECD) or candidate countries starting next year.
"The legislator has not clarified the mechanism for implementing the proposed changes, for example, whether the standard VAT rate will also apply to bilingual and multilingual editions, such as dictionaries," noted LGTA.
The association reported that the changes will affect books, including educational literature, brochures, booklets, and similar printed publications, pictures, drawing and coloring books for children, and other goods in the Ukrainian language, which LGTA does not view positively.
LGTA points out that the changes will inevitably require additional administrative and financial resources to ensure compliance with the requirements, but in the information report of the Ministry of Finance "On priority measures to be included in the draft law on the state budget for 2026, 2027, and 2028," it is difficult to determine the impact of the proposed changes.
LGTA cannot specify what share of books in Latvia will be subject to the 21% VAT rate, as there are no accurate data on the volume of sold goods and their distribution by languages.
Members of LGTA represent at least half of the booksellers in Latvia.
It has already been reported that starting next year, a standard VAT rate of 21% will apply in Latvia to books published not in the Latvian language, the languages of EU member states, or OECD countries, or candidate countries.
The standard VAT rate of 21% will also apply to the delivery and subscription of printed publications and publications (including on websites) if they are not in the Latvian language, the languages of EU member states, or OECD countries.
According to LETA, this will mainly affect books and printed publications in the Russian language.
Books and printed publications in the Latvian language and the languages of EU member states or OECD countries will still be subject to a reduced VAT rate of 5%.
The package of budget bills for 2026 is planned to be presented in the Saeima on October 15.
