Change in VAT rates in Latvia in 2026

Latvia has approved tax changes introducing a temporary 12% VAT rate on essential food items from July 2026 to June 2027, while making the same reduced rate permanent for locally typical fruits, vegetables, and berries from January 2026. Additionally, the 5% reduced VAT rate for books and media will be limited to publications in Latvian, EU, or OECD languages, with all others subject to the standard 21% rate.

The Latvian Parliament has officially approved tax changes as part of the 2026 state budget.

One of the measures is the Essential Food Pilot Project, which introduces a temporary 12% VAT rate on several basic goods, down from the standard 21%. The reduced rate will run from July 1, 2026, to June 30, 2027.

Eligible products include:

• Bread: All types, including rye, wheat, mixed-flour, and gluten-free.
• Milk: Fresh, sterilized, or pasteurized cow, sheep, or goat milk (UHT milk excluded).
• Poultry: Fresh and chilled meat such as chicken, turkey, duck, and goose (frozen is excluded).
• Eggs: Fresh poultry eggs in shells.

In addition, Parliament made the 12% VAT rate permanent for fresh fruits, berries, and vegetables typical to Latvia, effective January 1, 2026. This measure is intended to promote healthier diets and strengthen local agriculture.

The budget also introduces changes beyond food: the 5% reduced VAT rate for books and media will only apply to publications in Latvian, official EU languages, or OECD languages. Publications in other languages will be taxed at the standard 21%.