Value Added Tax registration in Latvia

VAT in Latvia (Pievienotās vērtības nodoklis, PVN) is administered by the State Revenue Service (SRS) under national legislation and EU directives. Businesses operating in or trading with Latvia are required to register for VAT when their activities meet the legal criteria.

VAT rates

Latvia employs a multi-tiered VAT system with the following rates:

Standard Rate: 21% applies to most taxable goods and services.
First Reduced Rate: 12% is applied to selected essential items such as pharmaceuticals, certain processed food products, hotel accommodation, and specific services.
Second Reduced Rate: 5% applies to basic items including locally produced fruits and vegetables, books, and newspapers.
Zero Rate: Certain transactions—such as exports, intra-community transport, and supplies to international organizations—are zero rated.

Eligibility for registration

Eligibility for VAT registration in Latvia depends on your business type:

Resident businesses

Mandatory Registration: Required when the annual taxable turnover exceeds the prescribed threshold (calculated on a calendar year basis).

Voluntary Registration: Available for businesses below the threshold, offering the benefit of reclaiming input VAT on purchases.

Non-Resident businesses

Must register if engaging in taxable activities in Latvia (such as warehousing or distance selling), regardless of turnover. Special provisions may apply to cross-border transactions.

Registration process and documentation

The VAT registration process in Latvia is straightforward:

VAT application forms

Obtain the appropriate forms from the official SRS website.

Documentation

For Resident Applicants: Complete the registration form and provide identification (e.g., personal ID or driver’s licence) along with supporting documents such as company articles of association and registration certificates, if applicable.

For Non-Resident Applicants: Submit the completed application along with proof of registration or VAT certificate from your home jurisdiction, and any required trade registration extracts. (A power of attorney is required if an authorized representative submits the application.)

Submission

Applications may be submitted online via the Electronic Declaration System, by email with electronic signatures, or in person at designated SRS service centers.

Processing

Once approved, the SRS assigns a unique VAT number (typically beginning with “LV” followed by 11 digits). VAT obligations begin from the date of registration confirmation.

Ongoing compliance

After registration, businesses must ensure ongoing compliance by:

Filing Returns: Submitting periodic VAT returns—monthly, quarterly, or biannually—depending on the scale and nature of their activities.
Recordkeeping: Maintaining accurate records of all taxable transactions and supporting documentation.
Staying Updated: Regularly reviewing the SRS website or consulting with tax professionals to keep informed of any regulatory changes.