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PM Siliņa: Reduced VAT on produce to cost EUR 16 million in budget

  • Prime Minister Evika Siliņa says it will cost EUR 16 million to apply a reduced VAT rate of 12% to fresh fruit and vegetables in Latvia next year.
  • The coalition agreed to apply the 12% rate instead of the originally planned 21% rate from 2024.
  • The government will need to find financial sources to cover the cost of the reduced VAT rate.
  • The reduced VAT rate of 5% for fresh vegetables, berries, and fruits was introduced in 2018 as a pilot project and was intended to last for three years.
  • The government has agreed to extend the reduced VAT rate until the end of 2023.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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