Latvia: Tax measures adopted in 2026 budget
Including reduced 12% VAT rate on certain essential food products
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