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Latvia: Support for proposal on reduction of VAT on fresh veg, berries and fruitsThe Latvian government has shown support to the proposal for the introduction of a reduced value-added tax (VAT) for fresh fruits, berries and vegetables, according to the Ministry of Agriculture.
The amendment would facilitate the enforcement of a reduced VAT rate for typically Latvian fresh fruits, berries, vegetables and potatoes that can be washed, chopped, sliced and packaged, but not for those thermally or otherwise processed, such as frozen, salted or dried products.
In order to avoid any ambiguity, a new appendix has been prepared for the law, listing the fruits, berries and vegetables for which a lowered 5 percent VAT rate would apply from next year, the Ministry said.
The reduced rate is planned to be introduced for the period from 1 January 2018 to 31 December 2020.
The bill "Amendments to the Law on Value Added Tax" has yet to be approved by the Saeima.
Publication date: 10/10/2017
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