Latvia VAT Rates 2026
Complete guide to Pievienotās vērtības nodoklis (PVN) in Latvia — standard rate, reduced rates, registration thresholds, filing deadlines, and compliance tips for businesses selling goods and services in Latvia.
Latvia VAT Rates at a Glance
Standard Rate
21%
Most goods & services
Reduced Rate
12%
Pharmaceutical products and medical devices
Super-Reduced
5%
Fresh fruit and vegetables (since 2018)
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Latvia VAT Calculator →What is VAT Called in Latvia?
In Latvia, value added tax is officially known as Pievienotās vērtības nodoklis (PVN). It is administered by the Valsts ieņēmumu dienests (VID — State Revenue Service).
Like all EU member states, Latvia operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Valsts ieņēmumu dienests is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.
Reduced VAT Rate in Latvia (12%)
Latvia applies a reduced VAT rate of 12% to the following categories of goods and services (subject to the specific conditions of Latvia VAT law):
- ✓Pharmaceutical products and medical devices
- ✓Hotel accommodation
- ✓Fresh fruit and vegetables
- ✓Books (physical)
Additionally, Latvia applies a super-reduced rate of 5% to:
- ✓Fresh fruit and vegetables (since 2018)
- ✓Certain books and educational materials
Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Latvia VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.
VAT Registration in Latvia
Registration Threshold
€50,000 annual turnover for domestic businesses; no threshold for non-established businesses
Once registered, businesses are issued a Latvia VAT number (LV + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.
Non-EU businesses are generally required to register for Latvia VAT with no registration threshold — the first taxable supply in Latvia triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.
Filing VAT Returns in Latvia
VAT returns in Latvia must be submitted electronically via the Valsts ieņēmumu dienests portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Latvia requires separate payment instructions or if bank debit is automatic.
VAT Invoice Requirements in Latvia
To be valid for VAT recovery purposes, Latvia VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):
- 1Supplier name, address and Latvian VAT number (LV + 11 digits)
- 2Customer name, address and VAT number
- 3Date of invoice and date of supply
- 4Sequential invoice number
- 5Description of goods/services
- 6Net amount, PVN rate, PVN amount
- 7Total gross amount
Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Latvia's national rules on simplified invoicing.
Reverse Charge Mechanism in Latvia
Latvia applies reverse charge to B2B services from abroad, construction services, and supplies of scrap metal and recyclable materials between registered persons.
Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Latvia VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."
Cross-border B2B services: If you supply services to aLatvia VAT-registered business from outside Latvia, the reverse charge generally applies under Article 44 of the EU VAT Directive. The Latvia business self-accounts for VAT — you do not charge VAT but must obtain their VAT number.
EU OSS and Latvia
Latvian businesses register for EU OSS via the VID EDS system. Latvia's export-oriented manufacturing and IT services sector creates significant cross-border VAT obligations addressed through OSS.
Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Latvia (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Latvia VAT due on your OSS return is paid in your registration country and forwarded to Latvia's Valsts ieņēmumu dienests.
Latvia VAT: Background & History
Latvia introduced VAT in 1995 and joined the EU in 2004, adopting the Euro in 2014. Latvia is notable for having dramatically reduced its standard VAT rate during the 2008–2010 financial crisis strategy — despite most countries raising rates, Latvia used structural reforms rather than tax rate increases. Latvia's VID electronic services (EDS — Electronic Declaration System) are well-developed and support real-time VAT filing. Latvia operates a cash accounting scheme for small businesses, reducing cash-flow pressure.
Practical VAT Compliance Tips for Latvia
Latvia's EDS (Elektroniskā Deklarēšanas Sistēma) at vid.gov.lv is the primary platform for all VAT filing — paper submission is not accepted
Latvia introduced a 5% reduced rate on fresh fruit and vegetables in 2018 — a notable change from the standard rate that applies to most food
Latvian VAT returns must include detailed information on intra-EU transactions — the EC Sales List (VIES) is integrated into the monthly VAT return
Frequently Asked Questions — Latvia VAT
What is the VAT rate in Latvia in 2026?
The standard VAT rate in Latvia is 21% in 2026. A reduced rate of 12% applies to Pharmaceutical products and medical devices, Hotel accommodation, Fresh fruit and vegetables, and other qualifying goods and services. A super-reduced rate of 5% applies to Fresh fruit and vegetables (since 2018) and Certain books and educational materials.
What is VAT called in Latvia?
VAT is known as Pievienotās vērtības nodoklis (PVN) in Latvia. It is administered by the Valsts ieņēmumu dienests (VID — State Revenue Service).
What is the VAT registration threshold in Latvia?
€50,000 annual turnover for domestic businesses; no threshold for non-established businesses
How often do you file VAT returns in Latvia?
Monthly VAT returns by the 20th of the following month
What items have a reduced VAT rate in Latvia?
In Latvia, the reduced rate of 12% applies to: Pharmaceutical products and medical devices, Hotel accommodation, Fresh fruit and vegetables, Books (physical). A further super-reduced rate of 5% applies to Fresh fruit and vegetables (since 2018), Certain books and educational materials.
Can foreign businesses reclaim VAT in Latvia?
Foreign businesses from EU member states can reclaim Latvia VAT via the EU VAT refund directive (Directive 2008/9/EC) through their home country's tax authority. Non-EU businesses may reclaim under the 13th Directive, subject to reciprocity. Claims must be submitted annually by 30 September for the prior calendar year.