On Thursday, 7 January, the Saeima adopted in the final reading urgent amendments to the Value Added Tax Law, introducing a zero value added tax (VAT) rate to COVID-19 vaccines.
The zero VAT rate will be applied to COVID-19 vaccines registered in accordance with the regulations governing the pharmaceutical industry, as well as to medical devices designed for in vitro diagnostics of COVID-19, including tests and testing equipment, which comply with the requirements of the European Union (EU).
A zero VAT rate will be also applied to services closely tied to the vaccines and medical devices, such as transportation, storage, and security services.
The Law was amended to effectively adopt the EU Directive regarding temporary measures in relation to VAT applicable to COVID-19 vaccines and in vitro diagnostic medical devices in response to the COVID-19 pandemic. According to the explanatory note to the amendments, this will provide access to the vaccines and jump-start vaccination of the population as soon as possible, and at a reasonable cost.
Since the first COVID-19 vaccines arrived to Latvia at the end of December last year, the zero VAT rate to COVID-19 vaccines, medical diagnostic devices and closely related services is applied as of 25 December 2020 until 31 December 2022.
Amendments to the Value Added Tax Law will enter into force on the next day following their promulgation.
Saeima Press Service