Latvia: Proposed changes to application of reduced VAT rates for publications and food products
Proposed amendment and pilot project would affect application of reduced VAT rates
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october 30, 2025
Proposed amendments to the value added tax (VAT) law would change the application of reduced VAT rates to publications and certain food products.
- A proposed amendment to the VAT law would provide that from January 1, 2026, the reduced 5% VAT rate for publications would apply only to books, press, and other publications in Latvian, Latgalian, Livonian, and the official languages of the EU, European Economic Area (EEA), Switzerland, EU candidate countries, and the OECD. Read an October 2025 report prepared by the KPMG member firm in Latvia.
- A pilot project would introduce a reduced VAT rate of 12% for certain food products from July 1, 2026, to June 30, 2027. This would cover all types of bread, fresh milk (excluding UHT milk), fresh chilled poultry meat, and fresh poultry eggs. Currently, most food products are subject to a standard VAT rate of 21%, with a reduced rate of 12% already applied to baby food and fresh fruits, berries, and vegetables typical of Latvia. Read an October 2025 report prepared by the KPMG member firm in Latvia.