VAT in Latvia 2026
The basic VAT rate in Latvia is 21%, but the settlement method is determined primarily by the location of the goods, the direction of transport, the status of the buyer and the role of the importer.
If your model requires a local number or ongoing settlements, Taxenlight handles foreign VAT registration and foreign VAT returns. Here you can check if a Latvian PVN is applicable to your company and which obligations to review next.
Latvian VAT in numbers
VAT in Latvia – what to check before the first invoice?
In Latvia, VAT is called pievienotās vērtības nodoklis, and the office and forms use the abbreviation PVN. Start with five questions, not choosing a rate.
- Where is the goods?Check the warehouse and the beginning and end of the transport.
- Who is the customer?Determine whether they are a taxpayer with a valid VAT number or a consumer.
- Who is importing?The importer on the declaration should correspond to the entity settling VAT.
- Who settles the tax?Seller, buyer, platform, or special procedure.
- Does simplification work?Evaluate reverse charge, OSS, IOSS, and call-off stock.
VAT rates in Latvia in 2026
Latvia applies a standard rate of 21%, reduced rates of 12% and 5%, and a 0% rate for eligible transactions. The preference depends on the exact category, terms, and delivery date.
| Rate | Sample range | The most important caveat |
|---|---|---|
| 21%Basic rate | Most goods and services, ITC and imports where the regulations do not provide for preferences or exemptions. | First, determine the place of taxation and the entity obliged to settle VAT. |
| 12%Reduced rate | This includes certain medicines and medical devices, passenger transport, accommodation, wood fuel and household heat, and eligible fruit and vegetables. | From July 1, 2026 to June 30, 2027, it also covers the types of bread, milk, poultry and eggs specified in the Act – not all food. |
| 5%Reduced rate | Certain books, brochures, newspapers, magazines and publications, including electronic and online publications. | The content, language of publication, method of making available and statutory exemptions must meet specific conditions. |
| 0%Zero rate | These include export, ICT, selected activities related to import, export and transit, and international passenger transport. | You need evidence and consistent reporting. A 0% rate is not the same as exemption. |
Example of gross price at 21%
A local sale from a warehouse in Riga for EUR 10,000 net results in EUR 2,100 VAT and EUR 12,100 gross if the transaction is subject to the standard rate and the tax is settled by the seller.
0% is not an exemption
At a 0% rate, the transaction remains taxable and the right to deduct may be retained. In the case of exempt sales, the deduction may be limited or excluded.
When is a transaction subject to Latvian VAT?
For goods, the starting point is their physical location and transport. For services, the relevant place of supply rule and the status of the recipient.
Goods in Latvia
The sale of goods from a Latvian warehouse can be considered a local delivery even if the seller does not have a registered office, branch or employees in Latvia.
Typical B2B service
Consulting, IT, marketing, and accounting services are typically taxed in the country of the business buyer. Latvian taxpayers can settle VAT through reverse charge.
Service with a special rule
Real estate, admission to events, catering, passenger transport and short-term rental of means of transport require a separate determination of the place of taxation.
Foreign company scenarios requiring VAT analysis in Latvia
The same product and the same customer may lead to a different settlement if the warehouse, transport direction, recipient status or importer role changes.
Warehouse and fulfillment
The transfer of own inventory from another EU country is generally considered an ITC in Latvia. The obligation may arise before the first sale to a customer.
Import and local resale
If a company imports goods through Latvia and then sells them locally, the importer, deduction and output tax must be consistently determined.
B2C Sales
Shipping from another EU country to a Latvian consumer may be covered by the OSS. Sales from a Latvian warehouse to a customer in Latvia are local.
Delivery with assembly
The place of delivery is usually where the goods are assembled. It's important to check whether the buyer or the foreign supplier will settle the tax.
B2B sales from another EU country
A typical ICT to a Latvian taxpayer usually does not require the seller's LV number if the buyer settles the ICT and the 0% rate conditions are documented.
Service not billed by the buyer
If the place of supply is Latvia but the recipient does not settle tax, the foreign service provider may need to register locally.
When might a foreign company need a VAT LV number?
Check the registration before the first activity if the company has to settle Latvian VAT itself or needs a number for ITC, IDT, import or warehouse operations.
EUR 50,000 does not protect every non-resident
A foreign company may be subject to registration from its first local transaction. The domestic threshold does not automatically apply to non-residents.
The SME procedure has separate conditions
The cross-border exemption for EU small businesses is a separate measure. It should not be confused with the standard domestic threshold.
LV number
For a legal entity, the VAT number has the prefix LV and 11 digits. The number itself does not constitute a company, branch, or fixed establishment.
Documents and step-by-step procedure
A complete analysis of the obligation, LV number, representative, documents and registration process can be found in a separate guide.
Reverse charge in Latvia
Reverse charge transfers the obligation to calculate VAT to the buyer. It may limit the foreign seller's obligations, but only for a specific transaction that meets the conditions.
Typical B2B service
A foreign service provider covered by the general rule does not usually need an LV number solely for this service if VAT is correctly settled by the Latvian taxpayer.
Selected local deliveries
Latvia also applies a domestic reverse charge for, among others, timber, scrap, construction services, selected electronics, grain and certain metals.
What doesn't reverse charge do?
It does not remove obligations arising from warehousing, ICT of own goods, import, IDT from Latvia or local B2C sales.
What to check on the invoice?
Details of the parties, VAT numbers, delivery date, description of the service, basis of the 0% rate or a note on the reverse charge and consistency with transport and records.
The LV number does not appear on every document
The VAT number used should correspond to the company's role in the specific transaction. Registration in Latvia alone does not automatically change all invoices issued by a foreign company.
Import of goods and import VAT in Latvia
When importing, the key factors are the place where the goods are released for sale, the status of the importer and the document confirming the right to deduction.
Who is the importer?
Check the entity indicated in the customs declaration, the EORI and VAT numbers used, and the delivery terms. A commercial invoice does not replace a customs document.
EORI is not a VAT LV number
The EORI number identifies the company for customs formalities, while the VAT number is used for tax settlement purposes. One number does not replace the other.
Payment or special settlement
VAT may be collected upon import or – if conditions are met and a permit is in place – settled according to a special procedure in the declaration.
VAT returns in Latvia in brief
Registered taxpayers submit their returns electronically via EDS. This section outlines the process without taking over the detailed intent of the guide regarding forms and fields.
Declaration by EDS
The periodic declaration and required attachments are generally submitted by the 20th day after the end of the month or quarter.
VAT payment
The tax amount is generally paid by the 23rd day after the end of the period into the unified tax account.
Transaction-free period
Active registration generally means the obligation to submit a declaration also for the period without sales or purchases.
PVN forms, attachments, corrections and nil declarations
A separate guide covers periods, specific fields, PVN 1–PVN 7, payments, adjustments and pre-shipment inspection.
EDS, VIES, Intrastat, OSS and IOSS
Latvian VAT is not just about periodic declarations. The electronic system, EU reporting, and statistical obligations operate in parallel and must be aligned with logistics.
EDS
The VID system is used for submitting declarations, attachments, corrections, and handling correspondence. Monitor not only shipments but also document status.
VIES and EU transactions
Check the contractor number in the VIES system. WDT and selected B2B services may require the PVN 2 summary information.
Intrastat
Once the relevant import or export thresholds are exceeded, statistical obligations may arise that are independent of VAT declarations and EU information.
OSS and IOSS
OSS covers qualifying B2C sales and IOSS covers certain imported goods in shipments with a value not exceeding EUR 150.
OSS does not account for Latvian stock
The procedure does not replace the LV number needed for ICT of own goods, local sale from a warehouse, import on own behalf or ICT from Latvia.
IOSS has a narrow scope
It does not cover the import of warehouse stock, shipments over €150, or excise goods. The VID describes the Latvian special procedures OSS and IOSS.
VAT deduction and refund from Latvia
The right path depends primarily on whether the company is or should be registered for VAT in Latvia.
Registered taxpayer
Eligible VAT is generally deductible in the PVN declaration based on a valid invoice or import document and the connection with the taxable activity.
A company from another EU country
An unregistered taxpayer who meets the conditions submits an electronic application through the administration of the country of his or her residence.
Non-EU entity
It applies a separate procedure immediately before the VID and should check additional conditions, documents and deadlines.
The most common VAT errors in Latvia
The greatest risk arises when sales, logistics, invoicing and reporting are analyzed separately, without a single transaction map.
Transaction model
- waiting for €50,000 despite local action,
- sending the stock before WNT analysis,
- OSS treated as a replacement for local VAT,
- omission of packaging and EPR obligations.
Rates and invoices
- 21% applied only based on customer address,
- 12% attributed to the entire food group,
- confusing 0% with exemption,
- reverse charge without verifying the buyer.
Import and reporting
- identifying the VAT number with the EORI,
- deduction from a document indicating another importer,
- declaration prepared without warehouse data,
- no PVN, VIES and Intrastat reconciliation.
VAT in Latvia 2026 – key conclusions
The standard rate is 21%, with reduced rates of 12% and 5%. However, for a foreign company, the place of taxation and the entity obligated to settle are more important than the rate itself.
Flow first
Identify the product, service, warehouse, transport, recipient and importer before selecting a rate.
Then the LV number
Warehouse, ITC, import, ITC or local sales may require registration before the first operation.
Finally, reporting
Invoices, PVN declaration, attachments, VIES, OSS and Intrastat should describe the same transaction.
VAT in Latvia 2026 – questions and answers
Frequently asked questions about rates, LV number, warehouse, reverse charge, OSS, declarations and refund of Latvian VAT.
The basic rate is 21%. Latvia also applies rates of 12%, 5%, and 0%, as well as exemptions for certain activities.
The Latvian name is pievienotās vērtības nodoklis. The abbreviation PVN is used in the Act, the EDS system, and forms.
No. Until June 30, 2027, the 12% rate applies to the types of bread, milk, poultry, and eggs specified in the annex to the Act. Other products are classified according to the standard rules.
No. The domestic threshold cannot be automatically applied to a non-resident. If a foreign company must self-report Latvian VAT, the obligation may arise from the first transaction.
Yes. The movement of your own goods from another EU country can be considered an ITC in Latvia, and subsequent sale from stock can constitute a local supply. The call-off stock simplification only applies if certain conditions are met.
No. You need to check the type of transaction, place of taxation, status of the buyer, any involvement of a fixed establishment, and previous movements of the goods.
No. OSS does not cover ITC of own goods and does not replace the local registration required due to typical inventory in Latvia.
Generally, by the 20th day after the end of the month or quarter. VAT is generally paid by the 23rd day. Details depend on the taxpayer's status and transactions.
No. The EORI number is used for customs formalities, and the VAT LV number is used for settling Latvian VAT.
Yes, if it meets the conditions for deduction or refund. Registered taxpayers generally include VAT in their returns, while unregistered businesses use the appropriate refund procedure unless they perform activities requiring local registration.
This text is for informational purposes only and does not replace an individual tax analysis. For VAT in Latvia, it's important to check taxpayer status, place of taxation, transaction model, reverse charge, VAT import, OSS/IOSS, right of deduction, and current VID reporting obligations.
