Latvia VAT Rate Changes on Food by July 2026

12% VAT Rate Expanded as of 1 July 2026

Reduced VAT rate of 12% will apply to certain 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, including pasteurized or frozen bread without additives or with such additives as seeds, nuts, various grains (including fermented grains), assorted grain flakes, bran, herbs, vegetables, dried berries, fruits, olives, bacon, or dairy products (e.g. milk, kefir, curd, butter, cheese), if their addition does not significantly change the nature of the product:
  
  • rye bread (including whole grain rye bread);
  • wheat bread (including whole grain wheat bread);
  • mixed flour bread (including bread made from non traditional grain flours such as oat, buckwheat, triticale, barley, corn and other flours);
  • special bread, for example gluten free bread with modified nutritional value intended for use in special diets;
  • portion sized bread (for example, polar bread, various types of crisp breads, bread rolls, burger buns);
  • flatbread (for example, pita, lavash, tortilla).
• Fresh, sterilised or pasteurised milk (excluding ultra-sterilised milk); this includes cow's. sheep's or goat's milk, as well as lactose-free 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.

Find the official list of products subject to reduced VAT rates published bythe Latvia tax administration.

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.