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.
|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|
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|
The current VAT rates in Latvia are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Latvia:
In Latvia just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
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.
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:
In addition to VAT returns, companies may be required to provide the Latvian authorities with Intrastat & EC Sales List returns:
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:
*This information is subject to change without notice.
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