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This guide provides an overview of VAT (Value Added Tax) in Latvia, covering applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaging in transactions within Latvia or with Latvian customers.
Latvia’s VAT system is governed by the Latvian VAT Act and aligns with the EU VAT Directive. VAT applies to most goods and services within Latvia, as well as on imports.
Euro (€)
LV followed by 11 digits (e.g., LV12345678901)
For non-EU businesses it is no longer compulsory to appoint a fiscal representative to register for VAT purposes – they can register in their own names.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
| 21% | Standard Rate | Applies to most goods and services |
| 12% | Reduced Rate | Applies to specific items, including medical supplies, specialized baby products, transport and accommodation for tourists, and heating |
| 5% | Reduced Rate | Applies to certain printed publications, mass media and subscriptions thereto |
| Business Type | VAT Registration Threshold |
| Resident Businesses | EUR 50,000 per annum |
| Non-Resident Businesses | No threshold; registration required for any taxable activity in Latvia |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | 23rd day of the following month | 23rd day of the following month |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 21% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Latvia applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
Access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or public interest purposes.
Latvian tax authorities have expressed an intention to implement mandatory electronic invoicing for B2B and B2G supÂplies as of 1 January 2025; requiring invoices to comply with EU standards.
Latvia requires digital reporting of VAT-related transactions, with submissions made through the Latvian tax authority’s electronic system.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Latvian VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
