Initiative on reduced VAT on catering to be considered

An initiative signed by more than 13,000 residents regarding the introduction of a reduced rate of value added tax (VAT) in the amount of 12% for public catering has been submitted to the Saeima for consideration, according to information on the public initiative portal “”.

The author of the initiative, the head of "Riga Islande Hotel" and President of the Latvian Hotel and Restaurant Association Andris Kalniņš expressed delight at the public support gained for the initiative to be raised in the Saeima.

“The short time during which votes have been obtained only indicates the immediate necessity of these changes,” Kalniņš said, adding that by introducing the reduced rate of VAT for public catering, the sector's services would become more accessible to the public during the price rise.

At the same time, Kalniņš expressed hope that public opinion will be heard and Latvia will join most European Union countries, which already have a reduced VAT rate for catering services.

Currently, catering services in Latvia are subject to a full VAT rate of 21%.

The collection of signatures for the initiative on the reduced VAT rate for public catering started on November 7, 2023.

Caterers have already 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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