This guide provides an overview of VAT in Latvia, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Latvia.
Latvia uses VAT as a tool to promote green energy, with reduced rates on eco-friendly products.
Foreign businesses that incur VAT on eligible expenses in Latvia may be able to reclaim it.
All EU countries
Doing business in Latvia? You’ll need to play by the rules of the Latvian VAT Act.
Only businesses that exceed the VAT threshold must register; those below it may choose to register voluntarily.
Latvia applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
A VAT refund application in Latvia should be submitted before 30 September of the year following the year in which the VAT in Latvia was incurred, for a VAT refund in Latvia under both the 8th Directive and 13th Directive. VAT refunds in Latvia can be made quarterly and annually, however the claiming periods for Latvia VAT refunds are not allowed to overlap with one another.
Quarterly Latvia VAT refunds under both the 8th Directive and 13th Directive should exceed EUR 400.00. Annual Latvia VAT refunds under both the 8th Directive and 13th Directiva should exceed EUR 50.00.
In addition to the standard VAT rate in Latvia of 21%, there are also reduced VAT rate in Latvia of 12% and 5% which are charged on certain items such as foodstuff, pharmaceutical and medical equipment and passenger transport. Expenses that are generally claimable in a VAT refund in Latvia are charged VAT at the standard VAT rate in Latvia, except for Taxis and public transport fares as well as Accommodation which is charged at the reduced VAT rate in Latvia of 12%.
5 Top AI-Powered Tax Compliance Tools Tax compliance software has come a long way and what used to mean basic automation now includes machine learning, smarter data processing and tools that can spot problems before they become expensive. The category has a new name: AI-powered tax compliance. For finance and tax teams managing tax […]
SAF-T Reporting Explained: What Businesses Need to Submit for VAT Compliance Tax authorities across Europe are moving away from manual, sample-based audits. In their place, a growing number of jurisdictions now require businesses to submit structured accounting and VAT data in a standardised format that can be checked automatically, at scale, and in far greater […]
The DGFiP Has Spoken: France’s September e-Invoicing Deadline Stands. There has been speculation in recent weeks about whether France’s mandatory e-Invoicing deadline would be pushed back following a cyberattack on the DGFiP, France’s Public Finances Directorate. The French government has now responded directly, and the answer is unambiguous: no postponement. David Amiel, Minister for […]
How to Deregister for VAT and What to Consider First A drop in turnover, a change of business model, or the closure of a cross-border sales channel can all result in a company being registered for a tax it no longer needs to charge. Cancelling that registration is rarely as simple as writing to the […]
EDI vs E-Invoicing: What’s the Difference and Which Does Your Business Need? Both EDI and e-Invoicing move structured transactional data electronically between businesses. On the surface they look similar. In practice they serve different purposes, operate through different mechanisms, and carry very different compliance implications depending on where your business operates. Understanding the distinction is […]
Backdating VAT Registration: What Businesses Need to Know VAT registration has a deadline. Miss it, and the tax authority does not simply move the start date forward to when you applied. In most cases, it moves it back to when you should have registered in the first place. That gap between when you were liable […]
VAT IT and Helios: Every Invoice Verified, All Eligible VAT Recovered. When your business crosses borders, the tax rules, invoice formats, and compliance requirements change with every country you enter. Most expense platforms were not built to handle that. Managing it across multiple vendors is where things tend to go wrong. Helios and VAT […]
Oman’s e-Invoicing Rollout Just Changed. Here Is the Updated Timeline. On 9 August 2026, Oman’s Tax Authority issued Decision No. 189/2026, adjusting the phased rollout of its mandatory e-Invoicing programme and providing more clarity in respect of the affected taxpayers. The dates have moved. The direction has not. What Changed Phase Who It Covers Previous […]
VAT in the Events Industry: The Triggers That Catch Businesses Out Most event businesses think they have a VAT plan. What they actually have is a VAT filing plan. Those are not the same thing. Filing returns on time does not protect you if the underlying classification of your supplies is wrong. If admission […]
Branch vs Subsidiary: Why the Distinction Matters More Than You Think for VAT Reclaim Most multinationals know the difference between a branch and a subsidiary from a corporate law perspective. Fewer realise how dramatically that distinction affects their VAT position, and specifically, how much recoverable VAT they may be leaving on the table because of […]
This webinar explains how US businesses can identify and recover foreign VAT, breaking down key concepts like reciprocity and showing where refund opportunities are often missed.
