Reduced VAT rate in Latvia

Latvia plans to introduce a temporary 12% VAT rate on selected essential foods from 1 July 2026 to 30 June 2027, covering bread, milk, poultry, and eggs. The same bill would also limit the 5% VAT rate for books and press publications from 2026 to publications in specified languages only.

From 1 July 2026, Latvia will introduce a temporary reduced VAT rate of 12% on essential food items. The measure will last until 30 June 2027.

Food products cover:

The 12% VAT rate will apply to:

• Bread — rye, wheat, mixed flour, gluten-free, crisp breads, rolls, buns, pita, lavash, tortilla.
• Milk — fresh, pasteurised or sterilised cow, sheep, or goat milk (excluding ultra-sterilised).
• Poultry meat — fresh chilled chicken, turkey, duck, goose, guinea fowl, and quail.
• Eggs — fresh poultry eggs in shell.

The Ministry of Agriculture explained that the move responds to global market fluctuations, energy costs, and geopolitical instability. Parliamentary approval is still required before the measure takes effect.

The same bill also changes the 5% reduced VAT rate for books and press publications. From 1 January 2026, the reduced rate will apply only to publications in:

• Latvian
• Latgalian
• Livonian
• Official languages of EU, EEA, Switzerland, EU candidate countries, and OECD members.