Who is required to register as a VAT payer?
Obtaining an EU VAT certificate and VAT registration applies to businesses that:
- import goods to the Latvian market
- conduct sales under intra-community sale of goods or acquire goods from the territory of the European Union (intra-community acquisition of goods)
- make purchases and sales of goods in Latvia
- store goods in Latvia for resale
- conduct online sales directly to Latvian consumers
- organize live exhibitions, events or training in Latvia
Any person who independently conducts business activities in any form and place, regardless of the purpose and result of these activities, is considered a taxable person (taxpayer).
VAT returns are filed monthly or quarterly, depending on the value of taxable supplies. VAT returns must be submitted electronically no later than the 20th of the month following the accounting period [month/quarter] to which they relate. As of January 1, 2021, all tax payments (including VAT) are to be paid into a new unified tax account of the Latvian tax authorities.
Once you register for Latvian VAT, you must comply with local regulations in many aspects, including:
- electronic invoices should bear the appropriate authentic signature and consent of the recipient
- customers must be properly invoiced for goods or services in accordance with Latvian VAT regulations regarding the time of delivery
- use approved foreign exchange rates
- accounting books should be retained for at least 10 years.
Currently, the following VAT rates apply in Latvia:
- 21% – standard rate,
- 12% – reduced rate, applicable to particular goods or services (medicine, medicinal products, educational literature and original literature editions, threduced rate: books (excluding e-books); newspapers and magazines
- 5% - locally produced vegetables and fruits. The 5% rate is valid until 31.12.2023
- 0% – applies to exports of goods, services related to exports, imports and transit transport, services provided outside Latvia, passenger transport and services of tourist agents, and in other cases provided by law
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting