From the middle of next year, a reduced value-added tax (VAT) rate of 12% will be established on certain staple food products, as provided for in the amendments to the Value Added Tax Law adopted by the Saeima.
The amendments were adopted to reduce the impact of rising food prices on the welfare of the population. The changes in the regulation of value-added tax are related to the draft law on the state budget for 2026 and the budget framework for the next three years.
A reduced VAT rate of 12% is planned to be established for rye, wheat, mixed, and gluten-free bread, including pasteurized or frozen bread with or without additives. The reduced VAT will also apply to various types of rolls, burger buns, lavash, tortillas, and pitas. The reduced tax rate will not apply to pies, croissants, and other pastries, as well as to crackers, toast, rye flour, and breadsticks.
A reduced VAT is also provided for fresh, sterilized, or pasteurized cow's, sheep's, or goat's milk, but will not apply to ultra-sterilized milk, as well as condensed and evaporated milk.
The reduced VAT rate will also apply to fresh and chilled meat of chickens, turkeys, ducks, geese, quails, and partridges, including processed, boneless, sliced, minced poultry meat, and offal of such meat. There is no tax reduction for frozen meat.
The 12% reduced VAT rate will also apply to fresh - thermally untreated - eggs of poultry in shells.
It is expected that the reduced VAT rate on food products will apply from July 1 of next year until June 30, 2027.
The adopted amendments also provide that from January 1, 2026, a 5% VAT rate will apply to books and printed publications in print and electronic form, including online, if they are published in Latvian, Latgalian, or Livonian languages, as well as in other languages of the European Union (EU) and OECD.
During the debates in the Saeima, deputies from the opposition parties "Latvia First" and "Stability" expressed confusion and objections regarding the amendments concerning the reduction of the VAT rate on books, stating that this would actually lead to an increase in the price of books in Russian.
The law is included in the package of bills accompanying the budget for the next year.
