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.
In this VAT guide, we have brought together the specific features of the Latvian regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
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 | EUR 350,000 |
| Intrastat threshold on dispatch | EUR 200,000 |
| 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 return | monthly depending on threshold |
|---|---|
| EC Sales List (ESL) return | 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 | A fine of 700 euros per declaration |
| Late payment of VAT | Interest on arrears of 0.05% per day of delay. Between 10% and 100% of the VAT due depending on the amount of undeclared tax. |
| Failure to report ESL/DEB | A fine of 700 euros per ESL declaration. |
Useful links on VAT in Latvia |
|
| Tax Administration 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 |
|---|
Need VAT assistance in Latvia? Contact us now.
A foreign company carrying out transactions in Latvia subject to Latvian VAT, may be required to appoint a tax representative. Established in Latvia, the fiscal representative will fulfill the company’s VAT obligations to the Latvian tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Latvia.
Intra-Community and Latvian VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Latvia, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Latvia? Contact us now.
The VAT rates currently in force in Latvia are as follows:
Need a tax representative in Latvia? Contact us now.
Do you need a VAT fiscal representative in Latvia? Certain operations may require VAT registration and the filing of VAT returns in Latvia:
To check whether your activities give rise to VAT obligations in Latvia, use our VAT simulator .
Need a VAT tax representative in Latvia? Contact us now.
In Latvia , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Latvia? Contact us now.
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.
Latvian VAT is named Pievienotās vertības nodoklis (PVN)and the VAT numbers in Latvia have the following structure: LV99999999999.
The administrations in charge of VAT in Latvia are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Latvia, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Latvia, use our VAT simulator or contact us.
Companies with a VAT number in Latviamust complete and file dVAT decl arations in Latvia detailing all taxable income (sales) and expenses (costs), at regular intervals: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:
Need VAT assistance in Latvia? Contact us now.
In addition to VAT returns, companies may be required to provide the Latvian authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Latvia can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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