Latvia’s government has decided to support the proposal to keep VAT at 5% for fruits, berries and vegetables until December 31, 2023. At the same time, the government also decided to outline achievable indexes for results, Finance Ministry reported.
This is support measure is intended to promote agriculture and gardening sectors’ development, reduce grey economy, increase the competitiveness of legally working entrepreneurs, as well as promote consumption of fresh fruits, berries and vegetables.
Law amendments are also intended to preserve the 30-day term for VAT returns adopted during COVID-19 crisis from 2021 and onward. This measure is intended to maintain timely return of overpaid VAT to taxpayers, the ministry explains.
Law amendments have to be approved by the Saeima. (BNN/Business World Magazine)