Latvia VAT Rate Changes on Food and Books by 2026

The Latvian government has approved amendments to the VAT Law introducing temporary and targeted VAT reductions from 1 January 2026, as part of a broader package of tax measures accompanying the 2026 state budget.

12% VAT Rate on Essential Food Products

A reduced VAT rate of 12% will apply to specific food products between 1 July 2026 and 30 June 2027, aiming to reduce the financial burden of high food prices on households.

The 12% rate will apply to:

• All types of bread;
• Fresh, sterilised or pasteurised milk (excluding ultra-sterilised milk);
• Fresh chilled poultry meat (including chicken, turkey, duck, goose, guinea fowl and quail);
• Fresh poultry eggs in shell.

The Ministry of Agriculture has attributed this decision to rising food prices driven by global market fluctuations, increased energy and transport costs, and geopolitical instability. The measure still requires parliamentary approval before it can take effect.

This proposal forms part of .

5% VAT Rate on Books and Press Publications: Language Restrictions Introduced

The same bill includes a change to the current 5% reduced VAT rate for the supply of books and press publications, whether printed or digital. Under the amendments proposed by the Ministry of Culture (MoC), this reduced rate will apply only to publications issued or published in certain languages:

• The Latvian state language;
• The Latgalian written language;
• The Livonian language (the language of the indigenous inhabitants of Latvia); and
• in the official languages  ​​of other Member States; including Member States of the European Economic Area, the Swiss Confederation, candidate countries for accession to the European Union or in the official languages ​​of the Organisation for Economic Co-operation and Development.

The language restrictions for the 5% reduced VAT rate shall enter into force by 1 January 2026. According to the MoC, these changes are intended to strengthen social cohesion, promote Latvian language policy, and reduce national security risks amid the current geopolitical situation.