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Latvian VAT – Rates & Registration

If a company not established in Latvia is providing ‘taxable supplies’ of goods or services in Latvia, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Latvia assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Latvia. Some of the most common examples are:

  • Importing goods into Latvia from outside the European Union
  • Buying and selling goods in Latvia
  • Selling goods from Latvia which are delivered to customers outside of Latvia (business or private customers)
  • Acquiring goods in Latvia from another EU country (Intra-community acquisitions)
  • Holding inventory in Latvia for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Latvia where attendees or delegates must pay admission

If you are currently, or plan to conduct any of the above (or similar) transactions in Latvia, you should contact us immediately for a complimentary consultation.

Latvian VAT Rates, Formats & Thresholds

VAT Rates VAT Number Format Distance Selling Threshold Intrastat Threshold
21% (Standard) LV12345678901 € 35,000 € 180,000 (Arrivals)
12% (Reduced) € 100,000 (Dispatches)
VAT return periods

Monthly, quarterly or semi-annually

Annual returns

No. However, in certain cases an annual statement is required in certain conditions, such as: if any output or input VAT adjustment is made, or in case of a change of the ratio of taxable and exempt supplies, or in case of the supplies only consisting of exempt financial services.

EC Sales Lists frequency

Monthly

EC purchase lists

No

Other reporting requirements

No

Extended reverse charge

Services provided by a non-established business to taxable persons established in Latvia are subject to the reverse charge and the customer accounts for the VAT. Please contact us if you would like details of how the extended reverse charge applies in Latvia.

Fiscal Representation

Optional. A business established in a country outside the EU may appoint a tax representative to register for VAT in Latvia.

Contact us for a complimentary consultation.

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