Navigating VAT in Latvia

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.

Last Updated: March 2026

Eco

Latvia uses VAT as a tool to promote green energy, with reduced rates on eco-friendly products.

Latvia at a glance.

Standard rate

21% VAT

Digital services VAT

Yes, at 21%

Mandate e-invoicing

Yes

Currency

Euro (EUR)

Zero-rated items

Zero-rated intra-EU and international transport, exports, qualifying aircraft and vessel supplies, and certain supplies to NATO or armed forces.

VAT format

LV followed by 11 digits

Fiscal representation

For non-EU businesses it is no longer compulsory to appoint a fiscal representative to register for VAT purposes – they can register in their own names

Reclaiming VAT in Latvia.

Reclaiming
VAT in Latvia.

Foreign businesses that incur VAT on eligible expenses in Latvia may be able to reclaim it.

Who can reclaim?

Latvia applies the rule of reciprocity. This means Latvia allows VAT refunds for foreign businesses, but only if they are based in approved countries.

Eligible countries include:

Claimable expenses:

Entertainment 21%

Accommodation 12%

Food, drink & restaurant services 21%

Hiring means of transport 21%

Fuel 21%

Public Transport 12%

Taxis 12%

Admission to fairs & exhibitions 21%

Training courses & seminars 21%

Goods 21%

Inter-company charges 21%

Office expenses 21%

Marketing costs 21%

Professional fees & AP invoices 21%

Entertainment

21%

Accommodation

12%

Food, drink & restaurant services

21%

Hiring means of transport

21%

Fuel

21%

Public Transport

12%

Taxis

12%

Admission to fairs & exhibitions

21%

Training courses & seminars

21%

Goods

21%

Inter-company charges

21%

Office expenses

21%

Marketing costs

21%

Professional fees & AP invoices

21%

VAT compliance in Latvia.

VAT compliance
in Latvia.

Doing business in Latvia? You’ll need to play by the rules of the Latvian VAT Act.

Who needs to register?

Only businesses that exceed the VAT threshold must register; those below it may choose to register voluntarily.

VAT registration in Latvia

VAT filing deadlines in Latvia

Monthly

23rd day of the following month

VAT payment deadlines in Latvia

Monthly

23rd day of the following month

Digital services in scope

Things to note

Latvia applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.

e-invoicing in Latvia.

e-invoicing
in Latvia.

Summary of the mandate in this country

B2G mandate in place

Yes

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

From 1 January 2028

B2B e-Invoicing model

N/A

Name of exchange infrastructure

eAddress (B2G) or Peppol (B2B)

Format(s) used

Peppol BIS Billing 3.0 (XML based)

FAQs

What are the deadlines for submitting VAT refund claims in Latvia?

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.

Are there any minimum spend thresholds for VAT refunds in Latvia?

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.

What are the different VAT rates applicable in Latvia?

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%.

Nearby countries.

Explore indirect tax information in these countries:

Estonia

Lithuania

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Navigating VAT in Latvia

Navigating VAT in Latvia

Eco

Standard rate

21% VAT

Digital services VAT

Yes, at 21%

Mandate e-invoicing

Yes

Currency

Euro (EUR)

Zero-rated items

Zero-rated intra-EU and international transport, exports, qualifying aircraft and vessel supplies, and certain supplies to NATO or armed forces.

VAT format

LV followed by 11 digits

Fiscal representation

For non-EU businesses it is no longer compulsory to appoint a fiscal representative to register for VAT purposes – they can register in their own names

Monthly

23rd day of the following month

Monthly

23rd day of the following month

B2G mandate in place

Yes

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

From 1 January 2028

B2B e-Invoicing model

N/A

Name of exchange infrastructure

eAddress (B2G) or Peppol (B2B)

Format(s) used

Peppol BIS Billing 3.0 (XML based)

FAQs

Related content.

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