Latvia plans to apply a 12% VAT rate to selected food items (bread, fresh milk, fresh chilled poultry, and eggs) from 1 July 2026 to 30 June 2027, and a 5% reduced VAT rate on publications in specific languages from 1 January 2026.
Latvia is considering reducing the VAT rate for select food items and publications under the 2026 state budget.
As such, Latvia will introduce a 12% VAT rate for selected food products from 1 July 2026 to 30 June 2027. This would include all types of bread, fresh milk (excluding UHT milk), fresh chilled poultry, and eggs. Currently, most food items are taxed at the standard 21% rate, while a reduced 12% rate already applies to baby food, fresh fruits, berries, and vegetables.
A 5% reduced VAT rate for publications would be limited to books, newspapers, and other publications in Latvian, Latgalian, Livonian, and the official languages of the EU, EEA, Switzerland, EU candidate countries, and OECD member states, effective 1 January 2026.
Earlier, Latvia’s government approved the 2026 state budget measures on 14 October 2025, along with the medium-term budget framework for 2026–2028, which was prepared in accordance with European Union (EU) and national fiscal discipline rules.
