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Latvia: Tax measures adopted in 2026 budget

Including reduced 12% VAT rate on certain essential food products

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february 9, 2026

Parliament in December 2025 adopted the 2026 budget, which introduced a reduced 12% value added tax (VAT) rate on certain essential food products for one year starting July 2026, and increased certain excise duties.

The 5% VAT rate for books and periodicals in specified languages was maintained, while supplies in third-country languages will be subject to the standard 21% rate.
 

For more information, contact a KPMG tax professional in Latvia:

Jevgenija Ivusina | jivusina@kpmg.com

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