Latvia plans VAT changes for Publications and Food

The Latvian government has proposed changes to the VAT Law as part of the 2026 Budget. The amendments aim to adjust reduced VAT rates for publications and certain essential food products.

If approved, the reduced 5% VAT rate will apply only to books, newspapers, and other publications issued in Latvian, Latgalian, or Livonian. It will also cover publications in the official languages of the EU, the European Economic Area, Switzerland, EU candidate countries, and OECD member states.

A one-year pilot project will temporarily lower VAT to 12% on key food items from July 1, 2026, to June 30, 2027. Products included are:

• All types of bread (rye, wheat, gluten-free)
• Fresh, sterilized, or pasteurized milk (excluding ultra-sterilized)
• Fresh chilled poultry meat (chicken, turkey, duck, goose, guinea fowl, quail)
• Fresh poultry eggs in shells

Currently, these items are taxed at the standard 21% VAT rate. The government hopes the reduced rate will ease high food prices, support vulnerable groups, and help local producers compete with cheaper imports.