2024 Guide – VAT in Latvia

Appoint a fiscal representative in Latviaand make sure to be 100% VAT compliant

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.

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 5 %
VAT parking rate n/a
Zero VAT rate yes

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.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

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”.

Why entrust your VAT obligations in Latvia to a tax representative?

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.

For VAT compliance in Latvia, choose EASYTAX

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.

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 VAT rates currently in force in Latvia are as follows:

  • Standard VAT rate: 21 %
  • Reduced VAT rate (1): 12 %
  • Reduced VAT rate (2): n/a
  • Super reduced VAT rate: 5 %
  • VAT parking rate: n/a
  • Zero VAT rate yes

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.

When do e-sellers need to register for a VAT number in Latvia?

In Latvia , as in other European Union countries, e-sellers must register for VAT:

  • when the overall threshold for intra-Community distance selling of 10,000 euros is exceeded, and they have not opted to pay 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 rates in 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.

Find out more:

Need a VAT tax representative in Latvia? Contact us now.

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.

Latvian VAT 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 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:

  • Penalties for failure to file a VAT return in Latvia: A fine of 700 euros per declaration
  • Penalties for late payment of VAT in Latvia: 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.

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:

  • 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 introduction in Latvia (EUR 350,000 excl.VAT per annum)
    – Intrastat threshold on dispatch in Latvia (EUR 200,000 excl.VAT per annum).
    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.

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:

  • The company 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 electronic portal of the tax authorities 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.

Rely on our VAT recovery services in Europe. Contact us today.


*This information is subject to change without notice.

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