From 1 January 2026, Latvia will implement VAT reductions including a 5% rate for books and media in specified EU, OECD, and national languages, and a permanent 12% rate for fresh fruits and vegetables to support consumers and domestic culture.
Additionally, a one-year pilot program (July 2026–June 2027) will reduce VAT from 21% to 12% on essential food items such as bread, milk, poultry, and eggs, aiming to curb inflation and lower household costs.
Changes in VAT rates effective from January 1, 2026, in Latvia
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Latvia
Author: Nikolina Basić
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Fiscal subject related
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Content accuracy validation date:
25.12.2025
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The Latvian Parliament has officially adopted a series of amendments to the Value Added Tax (VAT) Law, introducing significant tax relief for consumers. Starting January 1, 2026, residents will benefit from lower rates on educational materials and media, followed by a major one-year pilot project to reduce the cost of essential food items. The measures, bundled with the 2026 state budget, are designed to combat inflation and promote national culture.
Books and Media: New 5% Language-Based Rate: effective January 1, 2026, the current 5% reduced VAT rate for books and press will be updated with new language requirements. To strengthen the domestic cultural space, the 5% rate will apply to:
- Printed and online books, educational materials, and maps.
- Subscription fees for printed and electronic media.
Eligible Languages: Publications must be in Latvian, Latgalian, or Livonian. The rate also extends to official languages of the EU, EEA, and OECD (such as English, German, and French). Note: Publications in non-OECD/EU languages (including Russian) will be subject to the standard 21% VAT rate.
Food Prices: Permanent and Temporary Relief
The law introduces an approach. introduces an approach to food taxation to help household budgets.
- 1. Fruits and Vegetables (Permanent 12%)
While previously a temporary pilot, the 12% VAT rate for fresh fruits, berries, and vegetables typical to Latvia has been made permanent. This covers locally common produce, provided they are fresh and unprocessed.
- Essential Food Pilot Project (July 2026 – June 2027)
A new one-year pilot program will slash VAT from 21% to 12% for a specific list of essential staples. This project aims to test how tax cuts impact retail prices and consumer power.
Eligible products for the 12% rate include:
- Bread: All types (rye, wheat, mixed-flour, and gluten-free).
- Milk: Fresh, sterilized, or pasteurized cow’s, sheep’s, or goat’s milk (excluding UHT/ultra-sterilized milk).
- Poultry: Fresh or chilled meat (chicken, turkey, duck, goose, etc.).
· Eggs: Fresh poultry eggs in their shells.
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