- The ruling coalition in Latvia is considering a reduced VAT rate of 12% on fruits, vegetables, and berries.
- The rate may be introduced from January 1, 2024, if included in budget plans.
- In 2018, a reduced VAT rate of 5% was introduced for fresh produce as a pilot project.
- The Ministry of Agriculture concluded the project was successful, but the Ministry of Finance disagreed.
- The reduced VAT rate will be maintained until autumn 2023.
- Former Minister of Agriculture believes the VAT rate should be slightly higher to prevent the shadow economy.
- The current Minister of Agriculture believes the reduced VAT rate has a positive effect on the economy.
Source: eng.lsm.lv
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
