Reduced VAT on fresh fruits and vegetables grown in Latvia

We are pleased! Our work over several years has been successful. Today, on November 22, the Saeima adopted amendments to the law on value added tax (VAT) in its final reading, establishing a reduced VAT rate of 5% for fresh fruits, berries and vegetables typical of Latvia.

The reduced VAT rate of 5% for fruits and vegetables will be applied for a period from January 1, 2018 to December 31, 2020.

Until now, the VAT law stipulated that there was one reduced VAT rate in Latvia in the amount of 12%. This reduced VAT rate is currently already applied to food supplies, more specifically, to supplies of specialized food products intended for infants. In turn, the standard VAT rate of 21% is applied to other food.

In turn, the amendments to the law introduce a reduced VAT rate of 5% for supplies of food products that are fresh fruits, berries and vegetables, including washed, peeled, shelled, cut, and packaged, but not heat-treated or otherwise processed, for example, frozen, salted, dried.