The value added tax (VAT) on vegetables, berries, and fruit specific to Latvia will be set at 12 % next year, according to amendments to the Value Added Tax Law adopted by the Saeima in the final reading. The amendments also stipulate that from next year VAT will not apply to fees for sports competitions and activities organised by associations or foundations, or to fees for children's stays at camps. The amendments are related to the 2024 state budget.

The 12 % VAT rate on vegetables, berries, and fruit specific to Latvia will be in effect next year, from 1 January to 31 December. Until now, a reduced VAT rate of five percent has been applied to supplies of agricultural products specific to our region, while the standard rate of other foodstuffs is 21 %.

The amendments stipulate that value added tax does not apply to fees for participation in sports competitions or in sports classes organised by associations or foundations. The exemption will apply to both children's and adults' sports competitions or classes.

The threshold for entrepreneurs to register for VAT purposes with the State Revenue Service has been raised to EUR 50 000 from EUR 40 000 as of next year to support small businesses. The changes have been made because, as prices of goods and services rise, inflation also drives up the turnover of businesses, which brings them closer to the threshold for registration as a VAT taxable person, according to the explanatory note to the amendments.

The amendments to the Value Added Tax Law will enter into force on 1 January next year.

Saeima Press Service