Invoicing at 12% VAT in Latvia: what the reduced rate covers in 2026

In 2026 Latvia’s 12% VAT rate applies to the goods and services listed in Section 42 of the VAT Act: medicines and medical devices, specialised infant food, scheduled passenger transport, accommodation in tourist establishments, wood fuel and heating for households, and the fresh fruit, berries and vegetables in Annex 1. From 1 July 2026 to 30 June 2027 it also covers the bread, milk, fresh poultry and eggs in Annex 2 (transitional provision 48).

Updated: 25 September 2026

Wording on the invoice: PVN 12% No special statement is needed: the rate and the VAT amount are enough (Section 125(1), points 11 and 12). When an invoice mixes 12% and 21% lines, the amounts per rate are shown separately (Section 129(4)).
VAT on the invoice: 12%
Peppol VAT category: S
VAT return, supplier: row 42, row 53 Row 42 (value without VAT) and row 53 (VAT). Supplies of fresh produce, bread, milk, poultry and eggs to another EU country go in row 45.1.
Legal basis: Latvian VAT Act, Section 42

Sample invoice

SIA “Parauga Dārzeņi”

Invoice No. PD-2026/2281

Date of issue: 15/09/2026
Due date: 29/09/2026

Supplier SIA “Parauga Dārzeņi” Reg. No. 40000000102 VAT No. LV40000000102 Parauga iela 102, Tukums, LV-3101

Customer SIA “Parauga Klients” Reg. No. 40000000002 VAT No. LV40000000002 Parauga iela 2, Jelgava, LV-3001

Description	Qty	Unit	Unit price excl. VAT	VAT	Amount excl. VAT
Potatoes	120	kg	0.65	12%	78.00
Carrots	40	kg	0.80	12%	32.00
Rye bread	30	pcs	2.10	12%	63.00
Strawberry jam, 400 g	24	pcs	3.40	21%	81.60

Total excl. VAT: 254.60 EUR
VAT 21%: 17.14 EUR
VAT 12%: 20.76 EUR
Total due: 292.50 EUR

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What 12% covers (Section 42)

What	Condition	Basis
Medicines	Authorised centrally in the EU, on the Latvian register, permitted by the State Agency of Medicines, or not requiring registration	Section 42(1)
Medical devices, their parts and accessories	Placed on the market as required, normally used to treat or relieve impaired body functions, for individual use	Section 42(2)
Specialised infant food	Labelled as intended for infants, with a safety document attached	Section 42(3)
Scheduled passenger and luggage transport	Within Latvia	Section 42(4)
Accommodation	In tourist accommodation	Section 42(10)
Wood fuel: firewood, chips, shavings, briquettes, pellets	The actual consumer is a household	Section 42(11)
Heating	The actual consumer is a household	Section 42(12)
Fresh fruit, berries and vegetables in Annex 1	May be washed, peeled, cut and packed, but not cooked or otherwise processed	Section 42(16), point 1
Bread, milk, poultry and eggs in Annex 2	From 1 July 2026 to 30 June 2027	Section 42(16), point 2

Fresh fruit, berries and vegetables

Annex 1 of the VAT Act lists produce typical of Latvia: apples, pears, plums, cherries, quinces, strawberries, raspberries, blackcurrants, redcurrants, gooseberries, cranberries, lingonberries, blueberries, sea buckthorn, potatoes, carrots, beetroot, cabbage, broccoli, cauliflower, cucumbers, tomatoes, courgettes, pumpkins, onions, garlic, leeks, peas, beans, radishes, rhubarb, lettuce, spinach, herbs and others, 64 items in all. They may be washed, peeled, shelled, cut and packed, but not frozen, salted, dried or otherwise processed.

Bananas and citrus fruit, for example, are not on the list and take 21%. The Annex 1 produce has been at 12% since 1 January 2024; until the end of 2023 it was 5%.

Bread, milk, poultry and eggs: 1 July 2026 to 30 June 2027

This 12% is temporary: transitional provision 48 applies it from 1 July 2026 to 30 June 2027. After that, unless the law changes, these products return to 21%.

CN 1905, bread: rye, wheat, mixed-flour and special (e.g. gluten-free) bread, rolls and flatbread, including with seeds, nuts, grains, flakes, bran, herbs, vegetables, dried fruit, olives, dairy or bacon. Pastries (buns, pies, croissants, plaits) and dry flour products (rusks, croutons, breadcrumbs, breadsticks) are excluded.
CN 0401, milk: fresh, sterilised or pasteurised cow’s, sheep’s or goat’s milk, including lactose-free. UHT, condensed and evaporated milk are excluded.
CN 0207, poultry: fresh or chilled chicken, duck, turkey, goose, guinea fowl and quail meat and offal, including cut, boned, sliced or minced (minced with no more than 1% added salt). Frozen meat is excluded.
CN 0407, eggs: poultry eggs in shell, not heat-treated.

On the invoice and in the VAT return

Each invoice line carries its rate, and the VAT summary is split by rate. The value of 12% supplies goes in row 42 of the return and the VAT in row 53; the Section 42(16) foods supplied to a VAT-registered buyer in another EU country go in row 45.1.

In a Peppol e-invoice a reduced rate is VAT category S with a percentage of 12. Peppol BIS Billing 3.0 does not use category AA.

Common mistakes

Charging 12% on frozen, dried or cooked fruit and vegetables. Processed products take 21%.
Charging 12% on bread, milk and eggs before 1 July 2026 or after 30 June 2027.
Giving croissants and pies the bread rate. They are excluded and take 21%.
Charging 12% on firewood or heating for a business. It applies only to households.
Filing a 12% line as category AA in Peppol instead of S.

Frequently asked questions

What does the 12% VAT rate cover in Latvia in 2026?

Medicines, medical devices, infant food, scheduled passenger transport, accommodation in tourist establishments, firewood and heating for households, the fresh fruit, berries and vegetables in Annex 1, and from 1 July also bread, milk, poultry and eggs (VAT Act, Section 42).

When does bread get 12% VAT in Latvia?

From 1 July 2026 to 30 June 2027 (VAT Act, transitional provision 48).

Do bananas get 12% VAT?

No. 12% applies only to the produce in Annex 1, and bananas are not on it.

Is hotel accommodation 12% VAT in Latvia?

Yes, accommodation in tourist establishments is 12% (VAT Act, Section 42(10)).

Which VAT return rows are used for 12% supplies?

The value goes in row 42 and the VAT in row 53.

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At a glance