VAT in Latvia – a complete guide. Rates and registration thresholds | VAT in Europe #12

The Value Added Tax (VAT) was introduced in Latvia in 1995. The European Union regulates the registration, filing of declarations, and compliance with Latvian VAT rules through relevant EU Directives. Latvia has implemented the provisions of the directives by transferring their content (and consequently their applicability) into its own VAT law. VAT in Latvia is administered by the Latvian State Revenue Service, which is part of the Ministry of Finance.

Should you register for VAT in Latvia?

The obligation to register for VAT in Latvia exists in, among others, the following cases:

• import of goods through the territory of Latvia from another country (both from the EU and outside the EU),
• movement of goods between Latvia and other EU member states as part of intra-community supplies (in the form of sales or purchases of goods),
• purchase and sale of goods in Latvia,
• storage of goods in consignment warehouses,
• organization of exhibitions/conferences/trainings/other live events for which entry is paid at the entrance,
• e-commerce sales, after exceeding the threshold of 42,000 euros (this limit should be combined for B2C sales throughout the EU).

What information is required to obtain a Latvian VAT number and registration?

For companies not considered tax residents of Latvia, the Latvian Tax Office will require the completion of the relevant form (VAT-22), along with the submission of necessary documentation:

• VAT certificate confirming the registration of the company as a VAT taxpayer in a location outside the territory of the European Union (if applicable),
• extract from the national trade register of the company.

Is a Latvian fiscal representative or agent required?

A local Latvian agent or representative is not required by a company operating in another EU member state.

Compliance with Latvian VAT

When a company registers for Latvian VAT, it becomes subject to local regulations governing various aspects. These include, among others:

• Issuing invoices containing sensitive data (as specified in the Latvian VAT law),
• electronic invoices equipped with an appropriate electronic signature, with approved authenticity and the recipient’s consent,
• maintaining accounting records, the storage period of which must last at least 10 years,
• proper invoicing of customers for goods or services (in accordance with Latvian VAT regulations regarding delivery time),
• processing credit notes and other corrections, and using approved foreign currency exchange rates.

VAT in Latvia

RATE	TYPE	TYPE OF GOODS OR SERVICES
21%	standard	all goods and services not covered by the lower VAT rate,
12%	reduced	baby food, pharmaceutical products, medical products for people with disabilities, local passenger transportation, books (excluding e-books), newspapers and magazines, accommodation in hotels, district heating,
5%	reduced	assortment of locally produced vegetables and fruits,
0%	zero	intra-Community and international transportation.

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