Reduced VAT of 12% on vegetables and fruit enters into force in Latvia
The Latvian Parliament (Saeima) on Wednesday approved a proposal to extend the preferential 12% value added tax (VAT) rate on fresh fruit, berries and vegetables
.A proposal by representatives of the opposition parties to reinstate the 5% VAT rate on these foodstuffs was rejected after the ruling coalition questioned whether it would reduce prices.
The preferential VAT rate of 5% on such products was introduced in the country from 2018 until the end of 2023. Last December, a 12% rate was introduced for 2024, although the full VAT rate (21%) was originally planned for this year.
The ministry estimates that the 12% VAT rate on fresh fruit, berries and vegetables will cost the state budget €17.1 million next year, €19.1 million in 2026, €23.4 million in 2027 and €24 million in 2028.
