PTAC finds seven cases of failure to apply reduced VAT on food
PTAC conducted 64 inspections in early July and found seven cases where the reduced 12% VAT rate was not applied to four food product groups. Most violations were corrected immediately during the inspection.
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The Consumer Rights Protection Centre (PTAC) has carried out 64 inspections at the beginning of July to monitor the application of the reduced value-added tax (VAT) rate. In seven cases, it was found that the reduced VAT rate of 12% had not been applied to certain products. This rate has been in effect since July 1 for four basic food groups: bread, milk, fresh poultry meat, and eggs. According to PTAC, the non-compliances occurred mainly in the first days after the new requirement came into force due to human error, and most were rectified at the time of the inspection following PTAC’s instructions.
Overall, traders apply the new regulation correctly, but some non-compliances were observed among small traders, whereas large retail chains applied the reduced VAT rate appropriately. PTAC Director Zaiga Liepiņa notes that the inspection results show that traders have successfully adapted to the new requirements; however, consumers are encouraged to report any opposite observations.
PTAC reminds shoppers to pay attention to both price labels and purchase receipts to ensure that the 12% VAT rate is applied to the mentioned products. The reduced rate also applies to promotional items if they fall into these product categories. To promote a fair transfer of the tax reduction to final prices, the Ministry of Economics has launched the initiative “Fair VAT Reducer,” where traders can voluntarily pledge honest behavior and obtain a visual sign. The reduced VAT rate of 12% instead of 21% will be in effect for one year, until June 30, 2027.
