Latvia Government Approves 12% VAT Cut on Basic Foods Starting July 2026

• Latvia’s government approved a reduced VAT rate of 12% on basic food items including milk, bread, poultry meat and eggs
• The reduced tax rate will be effective from July 1, 2026 to June 30, 2027 to help reduce food price burden on consumers
• The policy covers all bread types, fresh milk products except ultra-sterilized milk, fresh poultry meat from various birds, and fresh eggs in shell
• The decision responds to rising food prices caused by global price increases, higher energy costs, transport expenses and geopolitical instability
• Parliament still needs to approve these tax changes before implementation

Source: eng.lsm.lv

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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