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

International Internet Magazine. Baltic States news & analytics Friday, 30.10.2020, 22:10

Government in Latvia supports application of reduced VAT to fresh fruit, berries and vegetables for another 3 years

BC, Riga, 30.09.2020.Print version
The Cabinet of Ministers on Wednesday approved amendments to the Value Added Tax Law, according to which a reduced value added tax rate of 5% will continue to be applied to fresh fruit, berries and vegetables for the next three years, reports LETA.

These amendments are part of a package of draft laws accompanying the 2021 budget.

The Finance Ministry explains that the purpose of the bill is to clarify the regulations on VAT in order to simplify VAT application, reduce the administrative burden and costs, eliminate interpretation possibilities, harmonize VAT regulations with other laws and regulations.

According to the amendments, the reduced VAT rate of 5% for fresh fruit, berries and vegetables will be maintained until December 31, 2023 in order to promote the development of fruit and vegetable production, reduce the shadow economy, increase competitiveness of the market operators, and promote consumption of fresh fruit, berries and vegetables.

The final decision on amendments will be made by Saeima.

Search site