Saeima to consider reduced VAT on catering

On January 18 the Saeima decided to refer to committees a Latvian citizens' collective initiative on the introduction of reduced value-added tax (VAT) in the amount of 12% for public catering.

The authors of the initiative believe Latvia should follow the example of other European Union States and reduce the VAT rate for catering services to 12%. This will make public catering more accessible, help combat the shadow economy, and boost the competitiveness of the sector in the Baltic region.

Since November, more than 11 thousand Latvian citizens have signed up for the initiative on the portal “”.

Caterers have repeatedly called for a reduced rate of VAT on public catering. The issue has been on the table since at least 2018, but so far the proposal has not been supported.

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