Register for VAT in Latvia

Are you supplying, or looking to supply goods to Latvia? If your business was not established in the country, you will likely be affected by the EU VAT (Value Added Tax) directive. Whether you are inside or outside the EU, you are likely to have to register for non-resident VAT.

Do I need to register for VAT in Latvia?

The circumstances in which you will have to register for Latvian VAT include:

  • Buying and selling goods or services in Latvia
  • Selling and shipping goods contained in Latvia to buyers outside of Latvia
  • Importing goods to Latvia from inside the EU
  • Storing goods or other physical property in Latvia
  • Selling online goods or services to buyers in Latvia*
  • Holding events in Latvia with paid admission

* when exceeding Distance Selling thresholds

If your business is currently or potentially affected by any of these factors, you are legally required to appoint a tax representative to register for VAT on your behalf. Contact us for a free consultation on your business’s unique VAT requirements.

What are the VAT rates in Latvia?

The standard rate of VAT in Latvia is 21%. A 12% rate of reduced VAT applies to certain products based on specific criteria.

What are the VAT return periods in Latvia?

VAT returns must be submitted monthly, quarterly or bi-annually, depending on the company’s turnover and intra-EU trade. While you may be taxed quarterly, you are unable to submit VAT reports on a quarterly basis.

Latvia requires that you submit an annual summarising return under certain conditions. This should be completed by May 1st of the year following the tax period.

What is the Distance Selling threshold in Latvia?

The distance selling threshold, which determines whether you need to pay VAT for sales to Latvian customers, is €35,000.

What is the Intrastat threshold in Latvia?

The Intrastat threshold, which affects the movement of goods between Latvia and another EU state, is €180,000 for arrivals and €100,000 for dispatches.

What if I sell goods on Amazon?

Many online sellers who are trading via Amazon make use of their Fulilment By Amazon (FBA) service. In order to trade faster and easier across Europe, companies use Amazon to store, pick, pack and deliver your products to the buyer’s local address.

Even though you may think that you’re making sales from you’re home country, Amazon holds the goods locally and the product would therefore be considered as a local sale, and subsequently liable for VAT.

VAT is the responsibility of the seller, not Amazon, and you can face heavy fines for not registering and/or paying VAT.