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VAT in Latvia

VAT Guide for EU countries within Europe

VAT in Latvia

Whether you’re a European or non-European company, establishing certain activities in Latvia may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Latvia.

If you deal with companies in Latvia, you may be able to claim a Latvian VAT refund.

Here you can find the specifics of VAT regulations in Latvia, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.

Basic information

EU membership 2004
ISO code LV
VAT introduced in Latvia 1995
VAT name in Latvia Pievienotās vertības nodoklis (PVN)
VAT ID format in Latvia LV99999999999
Territories with special status in Latvia n/a

VAT rates in Latvia

Standard VAT rate 21 %
Reduced VAT rate (1) 12 %
Reduced VAT rate (2) n/a
Super reduced VAT rate n/a
VAT parking rate n/a
Zero VAT rate no

Thresholds triggering VAT reporting obligations in Latvia

Intrastat threshold at introduction 230 000 EUR
Intrastat threshold on dispatch 120 000 EUR
Distance selling threshold As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Latvia

Intrastat declaration monthly depending on threshold
EC Sales List (ESL) declaration monthly, quarterly depending on threshold/conditions
VAT returns monthly depending on threshold, quarterly depending on threshold/for certain services, annually
Reporting currency EUR

VAT-related penalties in Latvia

Failure to file a VAT return Penalty of EUR 70 to 700 EUR.
Late payment of VAT Penalty of up to 30% of the VAT due and late payment interest of 0.05% of the VAT due per day overdue.
Failure to report ESL/DEB Penalty amount not specified.

Useful links on VAT in Latvia

Tax Authorities in Latvia Tax authorities
Ministry of Finance in Latvia Ministry of Finance
Check a VAT number in Latvia Check a VAT number
EU VAT Guide EU VAT Guide
Latvia has been a member of the European Union since 1st May 2004 and joined the Eurozone on 1st January 2014.

The four pillars of the Latvian economy are agriculture, chemical production, logistics and woodwork. In addition, Latvia has two ports (Liepaja and Ventspils) which are not frozen in winter, giving the country an important transit role for Russian products.

Introduced in 1995, Latvia’s value added tax legislation is governed by the VAT Act of 2004, which transferred European VAT Directives into local law.

Any foreign trader carrying out taxable transactions in the territory of Latvia shall, prior to carrying out such transactions, register for VAT. A fiscal representative is recommended to assist with the processing of all returns arising from this registration.

The current VAT rates in Latvia are as follows:

  • Standard VAT rate: 21 %
  • Reduced VAT rate (1): 12 %
  • Reduced VAT rate (2): n/a
  • Super reduced VAT rate: n/a
  • VAT parking rate: n/a
  • Zero VAT rate no

Certain transactions in Europe may require registering for VAT and filingVAT returns in Latvia:

To check if your activities involve VAT obligations in Latvia, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Latvia?

In Latvia just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the VAT in Latvia via the One Stop Shop,
  • or when they hold a stock of goods in Latvia and must report the stock supply transactions.

What are the VAT obligations for e-traders in Latvia ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT ratesin Latvia: standard rate (21 %), reduced rates 1 and 2 (12 % and n/a).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Latvia.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

Why identify yourself to VAT in Latvia?

You may need a VAT number in Latvia to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Latvia, use our VAT simulator or contact us.

VAT Latvian is named Pievienotās vertības nodoklis (PVN)and the VAT numbers in Latvia have the following structure: LV99999999999.

How do I get a VAT number in Latvia?

The administrations in charge of in Latvia VAT are the following: Tax authorities, Ministry of Finance.

Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Latviayou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

Companies with a VAT number in Latvia must complete and submit VAT returns in Latvia detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly depending on threshold, quarterly depending on threshold/for certain services, annually.

Failure to comply with the deadlines imposed by the Latvian authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.

These penalties are defined as follows in Latvia:

  • Penalties for failure to file a VAT return in Latvia: Penalty of EUR 70 to 700 EUR.
  • Penalties for late payment of VAT in Latvia: Penalty of up to 30% of the VAT due and late payment interest of 0.05% of the VAT due per day overdue.

In addition to VAT returns, companies may be required to provide the Latvian authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Latvian authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introductio n in Latvia (230 000 EUR HT/an)
    – Intrastat threshold on dispatch in Latvia (120 000 EUR HT/an).
    Failure to comply with the deadlines imposed by the Latvian authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Latvia are for tax purposes.
    Failure to comply with the deadlines imposed by the Latvian authorities for the filing of these ESL returns wil incur a penalty payment for the company.

In principle, a non-resident company in Latvia can recover all or part of the VAT incurred on its expenses.

There are three different scenarios:

  • The company, whether it is established within the European Union or not, is already registered for VAT in Latvia, or is obliged to register for VAT in Latvia. In this case, it must apply for a VAT refund via the periodic VAT return filed in Latvia, according to a periodicity:monthly depending on threshold, quarterly depending on threshold/for certain services, annually.
  • The company is established within the European Union, is not registered for VAT in Latvia and is not required to do so. In this case, a VAT refund should be requested via the tax authorities’ electronic portal in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Latvia. In this case, they must use the services of a fiscal representative to carry out what is required by the Latvian authorities on their behalf.
    > Learn more about our VAT recovery services.


*This information is subject to change without notice.

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