As of Wednesday, 1 July, a reduced VAT rate of 12% will apply to bread, milk, poultry meat and eggs. Retailers that fairly reflect the VAT reduction in the prices of basic food products will be able to receive and use a special sticker: “Fair VAT Reducer”. The reduced rate will remain in force for one year, until 30 June 2027.
The sticker is intended for retailers that sell goods subject to the reduced VAT rate and undertake to display prices clearly, without misleading consumers. In retail outlets, the sticker will serve as an easily visible assurance to shoppers that the retailer has committed to reflecting the VAT reduction in good faith.
“The reduced VAT rate for basic food products is a practical solution to help reduce people’s everyday expenses. At the same time, it is important to ensure that the full benefit of the tax reduction reaches consumers. Therefore, alongside the VAT reduction, we are also introducing the ‘Fair VAT Reducer’ identification mark, which will serve as a clear signal to consumers that the retailer has publicly confirmed its commitment to passing on the VAT reduction fairly to final prices,” emphasises Minister of Economics Viktors Valainis.
To receive the sticker file, a trader must complete the confirmation form on the website of the Ministry of Economics. After submitting the form, the sticker file will be available for download and will also be sent to the e-mail address provided by the trader. The sticker may be printed and displayed in the store in a place visible to consumers, as well as used in information materials.
A dedicated section on the reduced 12% VAT rate for basic food products has been created on the CRPC website. It explains which product groups are covered by the reduced rate, what exceptions apply and how the VAT reduction may affect the final price. It also provides information on where consumers can turn with questions or complaints. The section also includes a price calculator for estimating the possible price after the VAT rate reduction.
“The reduced VAT rate matters only if its benefit is visible and felt by consumers. The price calculator helps make this benefit understandable — it allows anyone to check how the VAT reduction may be reflected in the final price of a product. This is practical support for consumers and, at the same time, a signal to retailers: price information must be clear, accurate and fair. The more transparent this process is, the greater consumer trust will be,” emphasises CRPC Director Zaiga Liepiņa.
To promote the fair passing-on of the VAT reduction to prices, the Ministry of Economics, together with companies and organisations in the sector, has concluded an agreement “On the Fair Passing-On of the VAT Rate Reduction”. The participants in the agreement undertake to apply the VAT rate reduction in good faith and transparently, ensuring that it is reflected in the final prices offered to consumers. Producers, suppliers, retailers and the non-governmental organisations representing them are invited to join the initiative. To join, an application form must be completed and the electronically signed application must be sent to pasts@em.gov.lv.
Photo gallery from the public event on 30 June - PHOTO