- Latvia will run a one-year pilot from July 1, 2026 to June 30, 2027 with a reduced 12% VAT on essential foods instead of the standard 21%.
- The cut applies only to staples such as bread, fresh milk (not UHT), fresh chilled poultry meat, and fresh poultry eggs in shells.
- Other foods, including frozen or smoked meats, sausages, bread snacks, cakes, buns, and some dairy products, will still be taxed at 21%.
- Merchants passing on the tax cut can use an “Honest VAT reducer” symbol, and consumers can check compliance with an online calculator and report issues.
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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