On Wednesday, July 1st, a reduced value added tax (VAT) rate of 12% will take effect for bread, milk, poultry and eggs. The reduced VAT rate of 12% will also remain in place for fresh fruit, berries and vegetables.
“Reducing VAT from 21% to 12% on staple foods consumed by people every day will directly benefit consumers – in other words, everyone in Latvia. The reduced VAT rate will allow people either to save money or, while maintaining their current level of spending, to buy higher-quality food. Introducing the reduced VAT rate of 12% will help mitigate the impact of rising food prices on people’s well-being, particularly for socially vulnerable groups. Lower VAT will also reduce the adverse impact of inflation on household expenditure,” said Minister for Agriculture Uldis Augulis.
Under the current pilot project regulation, the reduced VAT rate of 12% for bread, milk, poultry and eggs will remain in effect until June 30th, 2027.