Latvia VAT Registration and Compliance Guide
Provinces
Goods
Provinces
Goods
About
Goods
About
Goods
Goods
Goods
Introduction to VAT in Latvia
Latvia's VAT is called PVN -- Pievienotās vērtības nodoklis. It's administered by VID (Valsts ieņēmumu dienests), the State Revenue Service. Latvia joined the EU in 2004 and adopted the euro on January 1, 2014. Both moves matter for VAT: EU membership brings the full EU VAT framework (the EU VAT Directive, OSS, IOSS, VIES), and eurozone membership means all VID VAT transactions happen in EUR. No currency conversion for EU businesses, no exchange rate risk on return filings. Registration, return filing, and payment all run through EDS (Elektroniskā deklarēšanas sistēma) -- the SRS's electronic declaration portal at eds.vid.gov.lv. Latvia uses three positive VAT rates: 21% standard, 12% reduced, and 5% super-reduced. That's broader than many EU member states' rate structures. The 5% rate was introduced in 2018 specifically for fresh Latvian-grown produce -- a narrow but real category that food businesses need to classify correctly. Latvia also has a well-developed e-government infrastructure: almost all business interactions with VID happen electronically, and the country is ahead of most EU peers in implementing mandatory structured e-invoicing for B2B transactions. Latvia VAT compliance is managed entirely through the EDS portal. Registration, monthly PVN declarations, EC Sales List submissions, refund applications, and all VID correspondence flow through EDS. Non-resident businesses access EDS through an electronic signature or through the credentials of their appointed Latvian fiscal representative. There's no paper option for regular compliance -- Latvia runs a digital-first tax system. The EDS portal is in Latvian, with some functionality available in other languages, but working knowledge of Latvian or a local adviser is practically necessary. This guide covers Latvia's three positive rates, the €40,000 registration threshold for Latvian-resident businesses, the LV-prefix VAT number format, fiscal representative requirements for non-EU businesses, monthly PVN return obligations, the SAF-T electronic audit file requirement, and Latvia's phased mandatory e-invoicing rollout. If you're a Latvian business approaching the registration threshold, an EU business making Latvian B2C sales above the €10,000 OSS threshold, or a non-EU digital service provider with Latvian customers, this guide gives you the full compliance picture.VAT Rates in Latvia
| Category | Rate | What It Covers | Key Notes for Your Business |
| Standard rate | 21% | Most commercial goods and services: professional fees, SaaS and digital platforms, advertising, electronics, retail, clothing, vehicles, construction, non-residential real estate, hospitality | Default. If a supply isn't zero-rated, reduced, or exempt, it's 21%. Applies equally to goods sold to Latvian customers and digital services delivered to Latvian consumers without a specific carve-out. |
| Reduced rate (12%) | 12% | Medicinal products and medical devices, infant formula and baby food, print and digital books, newspapers and periodicals, accommodation services, domestic supply of heat energy and firewood for household use | Books and newspapers at 12% regardless of whether print or digital -- Latvia aligned digital publications with physical ones. Accommodation: 12% for the room itself; ancillary services (restaurant, spa, parking) stay at 21%. |
| Reduced rate (5%) | 5% | Fresh fruits, berries, and vegetables -- specifically those grown in Latvia. Also applies to certain locally-grown produce. This rate was introduced in 2018 to support Latvian agricultural producers. | Scope is narrow: fresh, unprocessed Latvian-grown produce. Processed fruit products (jams, juices, canned goods) fall under 12% or 21% depending on product type. Imported fresh produce: 12%, not 5%. |
| Zero rate / Exports | 0% | Exports of goods outside the EU, intra-EU supplies to VAT-registered buyers, international passenger and goods transport, supply of vessels and aircraft for commercial use, EU-funded services in certain cases | Full input VAT recovery on costs related to zero-rated supplies. Intra-EU B2B supplies require a valid EU VAT number from your buyer (VIES-verified). No valid number: charge 21% Latvian VAT. |
| Exempt | Exempt | Financial services (lending, deposits, securities), insurance, most healthcare services, social services, education, residential property lettings, postal services, lottery and gambling | Input VAT on costs for exempt supplies is not recoverable. Mixed taxable and exempt activities require a partial deduction (proportional method) calculation. Being exempt is fundamentally different from being zero-rated. |
Latvia VAT -- Standard, Reduced, and Zero Rates
Latvia VAT at 21% is the rate for the vast majority of commercial transactions. Professional services, SaaS, cloud infrastructure, digital advertising, retail goods, hospitality, construction, non-residential property: all at 21%. The 12% reduced rate applies to a specific list: medicines and medical devices, books and newspapers (both print and digital -- Latvia aligned the rates in 2018, ahead of most EU countries), accommodation, infant formula, and domestic heat energy supply. The 5% rate is narrow: fresh, unprocessed fruits, berries, and vegetables grown in Latvia. Not imported fresh produce. Not processed. Latvian-grown, fresh, unprocessed. Everything else defaults to 21%. The 12% accommodation rate applies to the room cost only. Hotel restaurant bills (21%), spa services (21%), minibar (21%), parking (21%) -- those go at standard rate. A hotel invoice that bundles room and breakfast at a single blended 12% rate is non-compliant. Your business guest needs the split to recover input VAT correctly. Separate the lines, apply the rates per service type. The VID verifies invoice format compliance in audits, and rate classification errors on accommodation invoices are a common finding. Zero-rated exports require documentation. Goods physically exported outside the EU are zero-rated with full input VAT recovery on related costs. But 'zero-rated' doesn't mean 'no paperwork.' You need export confirmation from Latvian customs (via the EORI-linked customs declaration system). No export documentation means the VID treats the supply as 21% domestic. The same logic applies to intra-EU B2B supplies: you need the buyer's active VAT number, VIES-verified, before you apply 0%. VIES verification at the point of invoice is not optional -- if the number fails later, you're exposed.VAT Registration Threshold in Latvia
For local businesses
Latvian-resident businesses -- those incorporated in Latvia or with a fixed establishment here -- must register for VAT when their taxable turnover in the preceding 12 months exceeds €40,000. Unlike some EU member states that assess the threshold on a calendar-year basis, Latvia uses a rolling 12-month window. Cross €40,000 in any consecutive 12-month period and you must register. The registration obligation kicks in from the date you exceeded the threshold, not from the next calendar month. Businesses can also register voluntarily below €40,000 -- useful for recovering input VAT on significant startup or capital costs.For remote sellers
EU businesses selling goods B2C to Latvian customers are subject to the EU-wide €10,000 cross-border distance selling threshold. Below €10,000 in total B2C sales across all EU countries: charge your home country's VAT rate. Above €10,000: either register in each relevant EU country (including Latvia) or use the EU OSS (One Stop Shop) scheme to file a single consolidated return in your home country. OSS is almost always the right choice for EU-based goods sellers with multiple EU country B2C exposure. One OSS return covers all of them -- no need for individual Latvian, German, French, and Estonian registrations.For remote digital services
The same €10,000 pan-EU B2C threshold applies to electronic services, broadcasting, and telecommunications. EU businesses below €10,000 in total EU B2C digital sales: charge home country VAT. Above €10,000: OSS or individual country registration. Non-EU digital service providers have no threshold -- register from the first taxable Latvian B2C supply. Non-EU businesses can use the non-Union OSS scheme (register in any EU member state) or register directly in Latvia. Direct Latvian registration requires a fiscal representative in most cases. The non-Union OSS route is usually simpler for non-EU businesses with multiple EU exposures.Who Must Register for VAT in Latvia
VAT registration in Latvia is mandatory for: Latvian-resident businesses crossing €40,000 taxable turnover in a 12-month rolling period; EU businesses above the €10,000 pan-EU B2C threshold (unless using OSS); non-EU businesses making taxable supplies with a Latvian place of supply (from the first supply); businesses importing goods into Latvia for onward domestic sale; platform operators deemed the supplier of goods or services under EU platform economy rules; and Latvian-established businesses receiving services subject to reverse charge from non-established providers.Latvia VAT Registration for Local and Foreign Businesses
Getting your Latvia VAT registration done before your first Latvian taxable invoice matters more than it might seem. Latvian businesses register through EDS using their e-signature or Smart-ID credentials. The VID typically confirms the registration within one to three business days for Latvian-resident entities. Foreign (non-resident) businesses submit their application with supporting documentation and a fiscal representative appointment -- processing takes longer, typically two to four weeks. If you've already made your first Latvian taxable supply without being registered, the obligation is backdated to that supply date. The VID can assess output VAT and penalties from day one. For EU businesses using the OSS scheme: your OSS registration covers Latvian B2C sales for the categories OSS applies to. But OSS doesn't cover everything. B2B supplies in Latvia (where reverse charge applies on the Latvian buyer's side), goods imported into Latvia, and supplies from a Latvian fixed establishment stay outside OSS. A business with both OSS-covered B2C digital sales and a separate Latvian B2B operation may need both an OSS registration (in their home country) and a direct Latvian VAT registration for the non-OSS activities.VAT Number in Latvia
Latvia's VAT number format is LV followed by 11 digits. Example: LV40003521090. The 11-digit number is the legal entity registration number assigned by the Latvian Commercial Register (Uzņēmumu reģistrs) or the VID registration number for entities not on the Commercial Register. Natural persons (sole traders, individuals) registered for VAT use their personal identity code, which is also 11 digits in Latvia. All Latvian VAT numbers follow the same LV + 11-digit format regardless of entity type. The EU VAT number for intra-EU transactions is this full LV-prefixed number, verifiable through VIES.Latvia VAT Number Verification on EU VIES
VIES (vat.ec.europa.eu) queries the VID's registry in real time and confirms whether a Latvian VAT number is active and the entity name registered to it. This check takes seconds and is the minimum you should do before zero-rating a supply to a Latvian business customer. An invalid or inactive VIES result on a Latvian customer's number means you charge 21% VAT on the supply -- the zero-rating condition (valid buyer VAT number) isn't met. Store the VIES verification result with the invoice record. If the VID audits your zero-rated intra-EU supplies, the VIES print-out or screenshot at the invoice date is your primary documentation. VID's own registry query tool (available through the VID website and EDS) gives more detail than VIES: registration date, tax address, registration status, and any active insolvency or liquidation proceedings. For large or unusual transactions with a Latvian supplier or customer, the VID tool gives a fuller picture than VIES alone. A business that appears active on VIES but is in insolvency proceedings visible in the VID registry is a credit and compliance risk worth knowing about before the invoice is issued.VAT Registration Procedure in Latvia
Latvian-resident businesses register for VAT through EDS at eds.vid.gov.lv. The registration form (iesniegums PVN reģistrācijai) is completed online using the applicant's e-signature (eParaksts) or Smart-ID. The VID processes the application and issues a registration confirmation showing the LV-prefix VAT number and the registration effective date. Processing is fast for clean Latvian-entity applications -- typically one to three business days. The VID publishes all registered VAT taxpayers in its public registry. For non-resident businesses, the registration process involves:- Certified copy of the certificate of incorporation or equivalent registration document from the home country, in Latvian or with a certified translation
- Evidence of taxable supply activity in Latvia -- contracts with Latvian customers, invoices issued, evidence of goods shipped to Latvia, or platform transaction data showing Latvian B2C sales
- Fiscal representative appointment documentation: name and Latvian address of the representative, their Latvian registration number, and a notarised power of attorney (pilnvara) authorising them to act on your behalf with the VID
- Bank account details for receiving VAT refunds from the VID -- a Latvian EUR account is recommended but the VID will process refunds to foreign EU accounts
- Description of the nature of taxable supplies in Latvia and the expected annual turnover -- the VID may request additional information for unusual supply types or non-standard business structures
Tax Representative in Latvia
EU businesses registering for Latvian VAT don't legally require a fiscal representative under EU freedom of establishment principles. They can register and file directly through EDS using a Latvian e-signature or through a Latvian-registered tax adviser with their own EDS access. In practice, many EU businesses use a Latvian fiscal representative or tax adviser because EDS is in Latvian, the VID's correspondence is in Latvian, and managing ongoing monthly return obligations from outside Latvia is operationally complex without a local partner. Latvia's VAT rules require non-EU businesses without a Latvian establishment to appoint a fiscal representative in most cases. The representative is the VID's first point of contact for registration, returns, payment, refunds, and audit. Joint liability: Latvian law gives the VID tools to pursue the fiscal representative for the non-resident client's VAT obligations in certain circumstances, though the primary liability always sits with the registered business. This joint liability exposure is why reputable Latvian fiscal representatives do due diligence before taking on a non-resident VAT mandate. Choosing the right Latvian fiscal representative or tax adviser requires more thought than many businesses give it. Look specifically for experience with non-resident VAT registrations and with your supply type. A tax adviser who primarily handles Latvian SMEs with straightforward domestic operations may not have the depth to manage cross-border place of supply analysis, OSS reconciliation, or the mechanics of 13th Directive refund claims for non-EU businesses. Ask directly what non-resident VAT mandates they currently hold. For businesses using the non-Union OSS scheme (registered outside Latvia), a fiscal representative isn't needed for the OSS-covered supplies. But if those same businesses also have Latvian taxable supplies outside OSS scope -- imported goods, B2B supplies, or operations from a Latvian fixed establishment -- they may still need a direct Latvian registration and a representative for those. Don't assume OSS eliminates the Latvian compliance footprint entirely without mapping your specific supply mix.VAT E Invoices in Latvia
Latvia is one of the more advanced EU member states on mandatory e-invoicing. The country has been building the Peppol-based e-invoicing infrastructure since the early 2020s and has committed to mandatory structured e-invoicing for B2B transactions in phases. The Latvian e-invoice standard aligns with the EU EN 16931 core invoice norm and uses the Peppol BIS Billing 3.0 format. Latvia participates in the European Peppol network, meaning Latvian e-invoice infrastructure is compatible with the same network used in Finland, Sweden, Norway, and other Peppol-first countries. For B2G (Business to Government) transactions, Latvia has required structured e-invoicing for government procurement suppliers since 2018 under the EU e-invoicing Directive (2014/55/EU). Central government entities have been receiving and processing Peppol-format invoices for several years. Sub-central government adoption followed. If you supply Latvian public authorities, your invoices must already be in structured e-invoice format to be processed. PDF invoices are rejected by most Latvian public procurement systems.Timeline for different business sizes
- 2018 -- Latvia transposes EU Directive 2014/55/EU on e-invoicing in public procurement. Central government buyers begin mandatory acceptance of structured e-invoices from suppliers. Peppol Access Point infrastructure established in Latvia under PEPPOL authority participation.
- 2020-2022 -- Sub-central government entities (municipalities, state-owned companies, public hospitals, public universities) progressively adopt structured e-invoice receipt. Suppliers to these entities increasingly required to issue Peppol-format invoices. Voluntary B2B e-invoicing adoption grows through the Peppol network.
- 2024 -- Latvian Ministry of Finance and VID publish roadmap for mandatory B2B e-invoicing. Large businesses (annual turnover above a to-be-confirmed threshold) targeted for Phase 1. Technical specifications for B2B e-invoicing confirmed as Peppol BIS Billing 3.0 aligned with EN 16931.
- 2025 (Phase 1 -- planned) -- Mandatory B2B e-invoicing for large businesses in Latvia. Businesses above the Phase 1 turnover threshold must issue and receive structured e-invoices for domestic B2B transactions. Peppol Access Point connection required. Monitor VID and Latvian government publications for confirmed implementation dates.
- 2026 (Phase 2 -- planned) -- Mandatory B2B e-invoicing extended to all remaining VAT-registered businesses in Latvia. All domestic B2B tax invoices must be structured e-invoices. PDF invoices no longer compliant for B2B transactions. Non-resident businesses registered for Latvian VAT with domestic B2B customers fall within scope from Phase 2.
VAT Returns in Latvia
Latvia VAT returns are filed monthly. Unlike many EU member states that allow quarterly filing for small businesses, Latvia mandates monthly PVN declarations for all VAT-registered businesses regardless of size or turnover. That's a significant compliance difference for businesses coming from quarterly-filing jurisdictions. Twelve return periods per year instead of four, each with a 20th-of-the-following-month deadline. Set up the calendar before your first period ends -- a missed first deadline sets a poor compliance record with the VID from the start.Types of reports
Latvia VAT compliance involves several regular submissions in addition to the main PVN declaration:- PVN deklarācija (monthly VAT return): the primary return covering output VAT on all taxable supplies for the month and input VAT recoverable on business purchases. Self-assessed. Filed through EDS. Due by the 20th of the following month. Payment due simultaneously. Businesses in a refund position declare the refund amount in the return -- refund approval is a separate VID process, not automatic.
- EC Sales List (Kopsavilkuma paziņojums): monthly summary of all intra-EU B2B supplies of goods and services. Reports the buyer's VAT number, country, and supply value for each EU business customer. Due by the 20th of the month following the reporting period. The VID cross-checks this against VIES data from other EU tax administrations. Discrepancies between your ESL and your customer's intra-EU acquisition declaration in their country will generate VID queries.
- Intrastat declaration: statistical report on physical goods movements between Latvia and other EU member states. Arrivals and dispatches reported separately. Filed with the Central Statistical Bureau (CSB), not the VID. Threshold reviewed annually. Due by the 10th working day of the following month. Not a tax declaration -- no VAT liability attached -- but failure to file generates CSB penalties.
- SAF-T file: structured accounting data export in standardised XML format. The VID requests SAF-T from businesses under audit, and from large taxpayers on a periodic basis. The file covers invoice-level transaction data, VAT codes, account balances, and payment records. Your accounting system must be capable of generating a VID-compliant SAF-T export. If it can't, resolve that before the VID requests one.
Deductible VAT in Latvia
Input VAT (PVN priekšnodoklis) deduction in Latvia follows the standard EU principle: VAT paid on goods and services acquired for your taxable business activities is recoverable. VAT on costs for exempt activities is not. VAT on personal consumption is not. For businesses with both taxable and exempt supplies, a proportional deduction (proporcija) applies -- the deductible percentage is calculated as taxable turnover divided by total turnover, applied to all mixed-use costs. The VID accepts both the general proportional method and a more precise direct attribution method where businesses can separately identify costs for taxable versus exempt activities. Motor vehicles: Latvia allows full input VAT recovery on vehicles used exclusively for business purposes. For vehicles available for employee private use, input VAT is limited to 50% -- the same presumptive split used in many EU jurisdictions. The test is availability, not actual use. A company car that an employee could drive home on weekends is a 50% recovery vehicle even if they never do. Vehicles with no conceivable private use (delivery vans with no passenger seats, specialist commercial vehicles) recover 100%. Document the business-exclusive use restriction clearly if you're claiming more than 50%. Entertainment and representation expenses: business hospitality in Latvia is deductible for input VAT where a genuine business purpose exists and the expense is documented. The general rule allows recovery of VAT on client entertainment where it's clearly for a business purpose -- client meetings, working dinners, business events. Personal entertainment for employees (team parties, personal gifts) is more restricted. Write the business purpose on the expense record contemporaneously. Reconstructing justifications during a VID audit two years later is far harder. Capital goods (pamatlīdzekļi): input VAT on capital assets (real estate, major equipment, production machinery) is recoverable, but subject to a regularisation period if the use of the asset changes. For immoveable property: 10-year adjustment period. For other capital goods: 5 years. If a building purchased for taxable use is later converted to residential lettings (exempt), the remaining years of the regularisation period trigger an annual adjustment to the previously claimed input VAT. Track the purchase date, the original IVA claimed, and the intended use for every capital asset in the relevant value range.VAT Record Keeping Requirements in Latvia
Latvia's VAT records must be retained for five years from the end of the taxation year. The five-year period covers: all issued and received VAT invoices, PVN declaration records and working papers, import and export documentation, customs declarations, bank statements showing VAT payments and refunds, contracts relevant to VAT position, and all VID correspondence including registration documentation. The five-year clock starts from the end of the taxation period to which the document relates -- not from the document date. Latvia requires specific VAT invoice elements by law (Pievienotās vērtības nodokļa likums). A valid Latvian tax invoice must include: sequential invoice number within the issuer's numbering sequence, issue date, the seller's and buyer's name and legal address, the seller's VAT registration number, the buyer's VAT number (for B2B transactions), a description of the supply, the net amount, the applicable VAT rate, and the VAT amount -- per line if multiple rates apply. Missing any of these fields makes the invoice non-compliant. The buyer cannot recover input VAT on a non-compliant invoice. SAF-T readiness is increasingly a record-keeping requirement in practice. The VID has the legal authority to request a SAF-T file from any VAT-registered business, and does so routinely in audits. Your accounting system must be able to generate a VID-format SAF-T file on demand. If your current system can't produce SAF-T output, that's a gap to resolve before the VID asks -- not during the audit response window. The standard deadline for producing a SAF-T file after a VID request is 10-15 business days. Systems that require weeks of manual data extraction to produce the file will miss that window. Credit notes (labojuma rēķins or kredītrēķins) must reference the original invoice and be retained alongside it for the full five-year period. When you issue a credit note reducing a previously declared output VAT, the correction affects the period in which the credit note is issued (unless the original invoice was incorrect, in which case an amended return for the prior period may be needed). Keep the credit note chain -- original invoice, credit note, any revised invoice -- complete and clearly referenced in your records.VAT Penalties in Latvia
Latvia's VAT penalty regime is set out in the Latvian Administrative Violations Code and the Tax Administration Law. Late filing of a PVN declaration: 0.05% of the tax amount per day of delay for the first 15 days, rising to 0.1% per day thereafter, up to a maximum of 30% of the outstanding tax amount. On a €100,000 VAT liability filed 30 days late, that's approximately €5,000 in penalties before interest. Late payment interest (nokavējuma nauda) accrues separately at 0.05% per day from the due date. VID-assessed tax deficiency -- when the VID raises an assessment for underpaid VAT: the full assessed tax plus interest (0.05% per day) plus a penalty of up to 100% of the assessed tax in cases of deliberate evasion, or a reduced penalty for negligent non-compliance. The VID distinguishes between negligence and intent in determining penalty level. Businesses that cooperated fully, maintained complete records, and can demonstrate the error was inadvertent face lower penalty rates than those that obstructed the audit or had systemic evasion patterns. Voluntary disclosure significantly reduces the financial exposure. Identifying and correcting a VAT error through an amended PVN declaration -- before the VID initiates an investigation -- results in interest on underpaid VAT plus a reduced penalty. The interest continues to accrue from the original due date, but the penalty component is substantially lower than if the VID discovered the error independently. Latvia's tax law explicitly recognises voluntary disclosure as a mitigating factor in penalty determination. Don't sit on a known error. Non-registration penalties: failure to register when required carries fines of up to €7,100 for legal entities and up to €2,100 for natural persons, plus backdated tax assessments for all output VAT that should have been charged from the registration date. For non-resident businesses that have been supplying Latvia without registering for multiple years, the combined tax assessment, interest, and penalty exposure can be substantial. Proactive voluntary registration -- even backdated -- produces significantly better outcomes than enforcement-triggered registration.How Lappa Can Help with VAT Compliance in Latvia
Latvia's monthly PVN declaration requirement is the compliance feature that catches businesses most off guard. Coming from quarterly-filing jurisdictions (most of Western Europe, Switzerland, UAE), monthly filing at first seems excessive. Twelve Latvian deadlines per year, each on the 20th of the month, alongside EC Sales List submissions on the same schedule. For a non-resident business managing multiple EU registrations simultaneously, Latvia's monthly rhythm is a significant operational overhead without a local compliance partner. Lappa handles Latvian VAT registration through EDS for both resident and non-resident businesses, including fiscal representative appointment for non-EU clients, documentation preparation and submission, and VID liaison during the review process. We confirm your LV-prefix VAT number activation, set up your EDS access and compliance calendar, and manage the first filing period to ensure the initial return is submitted correctly. For the SAF-T requirement, Lappa assesses your accounting system's SAF-T export capability and advises on configuration or system upgrades needed to produce VID-compliant output. The VID has been increasing the frequency of SAF-T requests in routine compliance reviews, not just formal audits. Businesses that can produce clean SAF-T data quickly signal strong internal controls and typically receive lighter-touch VID treatment. Businesses that can't produce SAF-T at all get the opposite signal. For the Peppol e-invoicing transition, Lappa advises on access point selection, ERP integration requirements, and the technical specifications for Latvian B2B e-invoices. If you already have a Peppol connection for other EU countries, Latvia is an incremental step. If you're starting from scratch, the procurement and integration lead time is longer than most businesses budget for. Starting early gives you the option to run parallel testing before the mandatory deadline -- something businesses that start late almost never manage.FAQ for VAT Goods Latvia
Who needs to register for VAT in Latvia
Latvian-resident businesses when their taxable turnover in any rolling 12-month period exceeds €40,000. EU businesses above the €10,000 pan-EU B2C threshold unless using OSS. Non-EU businesses making taxable supplies with a Latvian place of supply from the first supply. Businesses importing goods into Latvia for domestic resale. Platform operators deemed suppliers under EU platform economy rules. Voluntary registration is available for Latvian businesses below €40,000 and can be advantageous if input VAT on business costs is significant. One registration threshold distinction that trips businesses up: the €40,000 applies to Latvian-resident businesses only. Non-EU businesses have no threshold -- they register from supply number one. EU businesses using OSS are covered for B2C digital services and certain goods, but OSS doesn't replace a direct Latvian registration for B2B supplies or fixed establishment activity. If you're unclear whether your specific supply configuration needs a direct Latvian registration or is covered by OSS, map the supply types carefully before assuming OSS is sufficient.What is the VAT number format in Latvia
LV followed by 11 digits. Example: LV40003521090. The 11 digits are the entity's Latvian registration number (for companies from the Commercial Register) or VID registration number (for other entities). Natural persons registered for VAT use their Latvian personal identity code, which is also 11 digits. All Latvian VAT numbers follow the same LV + 11-digit format. Verify any Latvian supplier's VAT number through VIES (vat.ec.europa.eu) before processing their invoice for intra-EU supply zero-rating or input VAT recovery. The VIES result for a Latvian VAT number confirms registration status and the entity name. For more detailed information -- registration date, tax address, any insolvency proceedings -- use the VID's own taxpayer registry or the Latvian Commercial Register (lursoft.lv or ur.gov.lv). VIES is the minimum check; the VID registry gives you the fuller picture for significant or novel counterparty relationships.How often are VAT returns filed in Latvia
Monthly. All VAT-registered businesses in Latvia file monthly PVN declarations, with no quarterly option available for smaller businesses -- unlike many other EU member states. The deadline is the 20th of the month following the tax period. January return due February 20. December return due January 20. Payment is due on the same day as the return. File without paying: penalty. Pay without filing: incomplete. Both are required through EDS simultaneously. If the 20th falls on a weekend or public holiday, the deadline moves to the next business day. EC Sales List submissions share the same monthly schedule and deadline as the PVN declaration. If you're making intra-EU B2B supplies in the same period, both submissions are due on the 20th. The VID treats missed EC Sales List deadlines with the same seriousness as missed PVN deadlines -- it's not a lesser obligation. Intrastat declarations for goods movements are due separately to the CSB by the 10th working day of the following month.Do foreign companies need a tax representative in Latvia
EU businesses: not legally required, though practically useful given the Latvian-language portal and correspondence. Non-EU businesses: required in most cases. The fiscal representative must be a Latvian-established entity (company or individual) with a Latvian registration number and EDS access. They become the VID's primary point of contact for your VAT registration. The joint liability aspect -- the VID can pursue the representative for some of your VAT obligations in specific circumstances -- means reputable representatives screen clients carefully. Allow several weeks for fiscal representative due diligence and appointment before submitting your registration application. Latvia VAT registration and ongoing compliance are manageable with the right local support. The monthly filing rhythm is the main operational difference from many other EU registrations, but once the EDS calendar is set up and your accounting system produces accurate monthly data, the 20th-of-month submission becomes routine. The bigger risk is the initial registration delay -- apply early, before your first Latvian invoice, and the compliance start is clean. Apply after the fact and you're immediately managing a backlog of prior periods alongside the current month.VAT Calculator
At 21%: multiply net by 1.21 to add VAT, divide gross by 1.21 to extract. A consulting invoice of €5,000 net carries €1,050 VAT and totals €6,050. Backwards: €6,050 / 1.21 = €5,000 net, €1,050 tax. At 12%: multiply net by 1.12. A hotel room at €120 net carries €14.40 VAT and totals €134.40. At 5%: multiply net by 1.05. Fresh Latvian produce of €200 net carries €10 VAT and totals €210. Every Latvian VAT invoice must show: the supplier's VAT number, the buyer's VAT number (B2B), invoice date, sequential number, supply description, net amount, applicable rate, and VAT amount. All per line if the invoice covers multiple rates. Currency: Latvia uses EUR. All VAT amounts on invoices and returns are in euros. If you invoice in USD or another currency, convert to EUR at the European Central Bank rate (or the Bank of Latvia rate) on the date of supply. Keep the conversion records -- the VID checks exchange rate application in audits. Using the payment date rate instead of the supply date rate is a common error that auditors flag.
VAT Standard rate
21%
VAT Reduced rate
12%,5%
Thresholds
VAT registration is required when taxable turnover exceeds €50,000 during the relevant 12-month or calendar-year assessment period. Businesses below this threshold may register voluntarily.