Financial Services, Foodstuff, Latvia, Legislation, Markets and Companies, Taxation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 12:52

Saeima approves reduced 5% VAT rate on fresh fruit, vegetables

BC, Riga, 23.11.2017.Print version
Saeima in Latvia on November 22th passed in the final reading amendments to the Law on Value Added Tax (VAT) setting a reduced 5% VAT rate on fresh fruit, berries and vegetables typical of Latvia, informs LETA.

The reduced VAT rate will be charged on fruit and vegetables from January 1, 2018 to December 31, 2020.

 

As they debated the draft amendments, lawmakers rejected proposals to change the initiative or expand the application of the reduced VAT rate. MP Julija Stepanenko (Harmony), for instance, proposed charging a reduced 12% VAT rate on bread, fresh meat, fish, milk and butter.

 

The Saeima faction of For Latvia from the Heart, meanwhile, proposed a reduced VAT rate on dairy products and bread, as well as food services, excluding alcohol.

 

A proposal by MP Vitalijs Orlovs (Harmony) to set the 5% VAT rate on government-funded medicines was also struck down.


At the moment, a reduced 12% VAT rate applies to baby food, while the standard 21% VAT rate applies to all other food products.






Search site