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VAT in Latvia

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In 1995, Latvia enacted a Value Added Tax. Latvian VAT registrations, returns, and compliance are governed by EU VAT Directives, which Latvia has included in its VAT Act. The State Revenue Service, which is part of the Latvian Ministry of Finance, collects the tax. 

Latvian VAT is imposed by the Latvian Value Added Tax Law (2012/197.2), which took effect on January 1, 2013. Foreign companies, sometimes known as “non-resident” traders, that provide products or services to local businesses or customers in Latvia, may be required to register for Latvian VAT. If so, they must then adhere to Latvian VAT compliance standards, including invoicing and VAT rates, and pay any Latvian VAT that is owed. 

Everything related to VAT in Latvia is included in our comprehensive guide below.

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Scope of Taxation

Transactions that are taxable for Latvian VAT purposes include:   

 

  • supplies of goods or services performed by a taxable person acting as such effected for consideration.  
  • Intra-Community acquisitions. 
  • Imports. 

 

Taxable Supplies 

 

The provision of goods for consideration made domestically, including exports and the delivery of goods to other EU Member States, is normally taxed, according to Article 5 of the Latvian VAT Law. 

 

According to Latvian VAT Law Article 1(20), a supply of goods is commonly defined as transferring the right to dispose of tangible assets as the owner.

The following transactions are also recognized to be supplies of goods: 

 

  • Immovable property, or a portion of it 
  • Energy sources such as electricity, fuel, heat energy, heating, water, steam, and cooling. 

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Latvia –  General VAT information

National Legislation  The Latvian State Revenue Service 
VAT in local languages   Pievienotās vertības nodoklis (PVN) 
VAT number format   13 digits [LV + 11 digits]  
LV 12345678901  
VAT rates  Standard 21%; Reduced 12%, 5%  
Zero-rated (0%) and exempt  
Frequency  Monthly, Quarterly, Bi-annual 
Thresholds 

 

Registration   
Established  EUR 40,000  
Non-established  None 
Intra-Community acquisitions  EUR 10,000  
Intra-EU Distance sales and electronically supplied services to consumers (OSS)  EUR 10,000 
Recovery of VAT by non-established businesses  Yes 
Compliance Returns and Deadlines 

 

VAT Return  20th of the following month. 
European Sales Listing  20th of the following month.  
Intrastat M  10th of the following month  


 

Last Updated: 21/09/2022

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

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