Latvia VAT – The Rates & Registration

If your company is not established in Latvia and is providing ‘taxable supplies’ of goods or services in Latvia, it might have to attain a non-resident VAT registration. This follows the EU VAT Directive, foreign traders are legally obliged to register for VAT in certain situations, in order to report taxable transactions and declare the VAT that needs be charged.

It is imperative that all businesses with any commercial actions in Latvia evaluate their compliance responsibilities and register before beginning any taxable transactions, if applicable.

What you should know

There are numerous circumstances in Latvia that can generate the responsibility to register for VAT. Below are some of the most common cases:

  • Goods being imported into Latvia from outside the EU;
  • Goods being bought or sold in Latvia;
  • Selling goods from Latvia that are delivered to customers out with Latvia (this applies to business or private customers);
  • Obtaining goods in Latvia from another country within the EU (Intra-community acquisitions);
  • Inventory of stock in Latvia for sale, circulation or delivery;
  • eCommerce sales of goods to customers, subject to Distance Selling VAT registration thresholds;
  • Arranging events in Latvia, if attendees or delegates pay admission.

If you are presently, or planning to conduct any of the above (or similar) transactions in Latvia, you should contact amavat® immediately to allow us to help you be VAT compliant.

VAT Rates, the Formats & the Thresholds

VAT Rates VAT No. Format Distance Selling Threshold Intrastat Threshold
21% (Standard)
12% (Reduced)
LV12345678901 € 35,000 € 180,000 (Arrivals)
€ 100,000 (Dispatches)

*amavat® accept no responsibility for the above figures being 100% accurate, at all times. They will periodically updated - last update 27 May, 2019.

Additional VAT information for Latvia

‘VAT Return’ Periods
Monthly, quarterly or semi-annually

‘Annual Returns’
No. But, in certain cases an annual statement is necessary in certain situations, such as: if any output or input VAT alteration 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

Additional reporting requirements
No

‘Extended Reverse Charge’
The supply of goods and 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 amavat® if you would like further information of how the extended reverse charge applies in Latvia.

‘Fiscal Representation’
Not obligatory. A business established in a country out with the EU must retain a tax representative to register for VAT in Latvia.