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Key takeaways
- Latvia VAT rates: The standard VAT rate is 21%, with reduced rates of 12% and 5%, plus a 0% rate for intra-EU and international transport services.
- Registration threshold: Resident businesses must register once turnover exceeds €50,000, while non-resident businesses must register from their first taxable activity
- Filing & penalties: VAT returns are filed monthly, quarterly, or bi-annually, and late filings or payments can result in fines up to €700 and interest charges up to 18.25%.
Latvia VAT key facts (2026)
| Item | Latvia |
|---|---|
| Standard VAT rate | 21% |
| Reduced rates | 12%, 5% |
| Registration threshold (domestic businesses) | €50,000 (previous and current calendar year) |
| Registration threshold (non-resident businesses) | None – register from first taxable supply. €10,000 EU-wide distance-selling threshold for B2C sales (OSS available). |
| VAT return filing frequency | Monthly for intra-EU traders; quarterly or half-yearly for smaller businesses |
| E-invoicing status | B2G mandatory since 1 January 2025; B2B mandatory from 2028 |
| Fiscal representative required for non-EU businesses? | No |
Register for VAT in Latvia with Taxually: CrossTax handles your Latvia VAT registration and returns.
Latvia has its own specific VAT (Value Added Tax) regulations that are essential for businesses operating in the country to understand. This comprehensive guide delves into the Latvian VAT system, covering VAT rates, registration requirements, and more.
Updated October 2026: Rate table corrected (books and press at 5%, fresh fruit and vegetables at 12%), 2026 Intrastat thresholds updated, and new sections added on non-resident registration, refunds and deadlines.
What is the Latvia VAT rate?
In Latvia, VAT, or Pievienotās vērtības nodoklis (PVN) as it’s known there, is a significant aspect of the fiscal framework. The standard Latvia VAT rate is 21%, with reduced rates of 12% and 5% and a zero VAT rate for specific goods and services.
| Type of VAT | VAT Rate | Applicable Goods/Services |
|---|---|---|
| Standard VAT | 21% | All other taxable goods and services. |
| Reduced VAT rate (1) | 12% | Includes food products for infants, hotel accommodation, pharmaceutical products, and fresh fruit, berries and vegetables. |
| Reduced VAT rate (2) | 5% | Books and press (newspapers, magazines and online publications), in print or electronic form, published in Latvian or an official language of the EU, EEA, OECD or certain other countries. |
| Zero rate VAT | 0% | Intra-community and international passenger transport. |
From 1 July 2026 to 30 June 2027, the 12% rate also applies to bread, milk, poultry meat and eggs, according to the Consumer Rights Protection Centre.
Registering for VAT in Latvia
Businesses, both local and foreign, engaging in taxable activities in Latvia must register for VAT. The registration threshold for local businesses is €50,000, measured over the previous and current calendar year. Unlike resident businesses, non-resident businesses are subject to Latvian VAT registration regardless of their turnover.
For EU-wide cross-border e-commerce, the distance-selling threshold is €10,000. Exceeding this in annual sales to Latvian customers will require you to register your business for Latvia VAT. Registration is also mandatory for businesses storing goods in Latvia or using fulfillment services like Amazon's FBA (Fulfilled-by-Amazon).
To register for VAT and receive a Latvian VAT number, businesses should apply directly to the Latvian State Revenue Service. The registration process typically takes around three weeks to complete.
Fiscal representation in Latvia
Unlike many other EU member states, Latvia does not require non-EU businesses to appoint a fiscal representative when registering for VAT.
Latvia VAT return filing and penalties
Those businesses engaged in intra-community selling must submit a Latvia VAT return monthly. Quarterly returns are required for businesses with non-intra-community sales of between €14,228.72 and €50,000 per annum. If annual non-intra-community sales are below €14,228.72, VAT returns must be filed bi-annually.
Returns should be electronically submitted through the Latvian State Revenue Service’s Electronic Declaration System (EDS) within 20 days after the end of the reporting period. VAT must be paid within 23 days after the end of the period.
Fines of up to €700 may be levied for the late submission of a Latvia VAT return. Failure to pay VAT on time will incur a fine of between 10% and 100% of the VAT owed as well as interest at 18.25%.
Is e-invoicing mandatory in Latvia?
Not yet for all businesses. After the Saeima amended the Accounting Law, structured e-invoices will be mandatory for all companies from 2028. E-invoices to public sector buyers have been mandatory since 1 January 2025. Foreign suppliers usually send them through the Peppol network, while Latvian companies use their official e-address. This is according to the Latvian Ministry of Finance.
How do non-resident businesses register for VAT in Latvia?
A business from outside Latvia must register before its first taxable transaction in Latvia. There is no turnover threshold for non-residents.
The steps, according to the State Revenue Service (VID), are:
- Complete the form "Submission of a Taxable Person of Another Member State and of a Third Country or Third Territory for Registration".
- Add a power of attorney if an agent signs, and an application for access to the Electronic Declaration System (EDS).
- Submit through EDS, by e-mail with a qualified electronic signature to vid@vid.gov.lv, or at a VID client centre.
- Once registered, file all VAT returns and reports electronically in EDS.
A non-EU business may register directly or through an authorised representative in Latvia.
VAT refunds for foreign businesses
Businesses not registered for VAT in Latvia can reclaim Latvian VAT through a refund claim. The deadline for a full calendar year is 30 September of the following year. Late claims are not considered, and claims must be in English or Latvian with amounts in euros.
- EU businesses apply through the online portal in their own country. The minimum is €400 for a period of three months or more, or €50 for a full year. VID decides within four months (VID).
- Non-EU businesses can claim only if their country offers the same to Latvian businesses. This currently covers Norway, Switzerland, Iceland, Monaco, the UK, and Bosnia and Herzegovina. A VAT certificate from the home tax authority is required, and VID also decides within four months (VID).
Key VAT deadlines in Latvia
- VAT return: within 20 days after the end of the tax period, filed in EDS.
- VAT payment: within 23 days after the end of the tax period.
- Intrastat: 10th day after the reporting month.
- Refund claims: 30 September of the following year.
Return and payment dates are set by VID.
Latvian Intrastat declarations
Intrastat declarations are necessary for businesses trading within the EU that have sales surpassing 2026 thresholds of €380,000 for arrivals and €220,000 for dispatches. These declarations are due by the 10th of the subsequent month and fines may be imposed for late submission.
Reverse charge mechanism in Latvia
The reverse charge mechanism in Latvia applies to certain transactions, such as services from non-residents and intra-community acquisitions as well as a limited number of domestic supplies. It shifts the VAT reporting and payment responsibilities from the supplier to the recipient.
Frequently asked questions
What is the VAT rate in Latvia?
Latvia’s standard VAT rate is 21%, with reduced rates of 12% (for baby food, accommodation, medicines, and fresh fruit, berries and vegetables) and 5% (for books and press, in print or electronic form). A 0% rate applies to intra-EU and international transport.
When do I need to register for VAT in Latvia?
Resident businesses must register once annual turnover exceeds €50,000. Non-resident businesses must register immediately upon starting taxable activities. The EU-wide distance selling threshold is €10,000.
How do I register for VAT in Latvia?
Businesses can apply through the Latvian State Revenue Service (VID). Once approved, you’ll receive a Latvian VAT number within around three weeks.
Do foreign businesses need a fiscal representative in Latvia?
No. Non-EU businesses are not required to appoint a fiscal representative for VAT registration in Latvia.
How often must VAT returns be filed in Latvia?
- Monthly – for businesses involved in intra-EU trade
- Quarterly – for annual turnover between €14,228.72–€50,000
- Bi-annually – for turnover below €14,228.72
Returns must be filed electronically within 20 days after the period ends, and VAT paid within 23 days.
Are Intrastat declarations required in Latvia?
Yes. Intrastat declarations must be filed monthly if EU trade exceeds the 2026 thresholds of €380,000 (arrivals) or €220,000 (dispatches). Submissions are due by the 10th of the following month.
