A reduced value-added tax (VAT) rate of 12 percent will apply to certain basic food products starting from the middle of 2026, the Saeima decided on Wednesday, 3 December. The amendments to the Law on Value Added Tax are linked to the 2026 budget, and are intended to mitigate the impact of rising food prices on residents’ well-being.

“This solution is one of the measures that can help to reduce the impact of rising food prices on the most vulnerable groups of the population, and ease the effects of inflation,” said Anda Čakša, Chair of the Budget and Finance (Taxation) Committee, which was responsible for advancing the amendments in the Saeima.

The reduced 12% VAT rate will apply to rye, wheat, mixed-flour, and gluten-free bread, including pasteurized or frozen bread, with or without additives. The reduced VAT will also apply to polar bread, various types of bread loaves, rolls, burger buns, lavash, tortillas, and pita bread. The reduced tax will not apply to pastries, meat pies, croissants, and other confectionery products, nor to crispbread, rusks, toast, breadcrumbs, or breadsticks.

The reduced VAT will also apply to fresh, sterilized, or pasteurized cow’s, sheep’s, or goat’s milk, but will not apply to ultra-sterilized, condensed or evaporated milk.

The reduced rate will further apply to fresh and chilled chicken, turkey, duck, goose, guinea fowl, and quail meat, including cut, deboned, sliced, and ground poultry meat, and such meat by-products. The tax reduction will not apply to frozen meat.

A 12% reduced VAT will also be applied to fresh—thermally unprocessed—poultry eggs in shells.

The reduced VAT rate for food products will apply from 1 July 2026 until 30 June 2027.

Saeima Press Service