This email address is being protected from spambots. You need JavaScript enabled to view it.

    +32 2 351 26 00

Latvia

 

News & Tips

Abolition of bi-annual VAT return

Your company has to report its VAT position by filing periodical VAT returns on a monthly basis provided your annual turnover of the preceding year exceeds LVL 35.000 [+/- € 50.000] or if you have intra-EU transactions. Other tax periods [quarterly or bi-yearly] were also available under specific conditions. Bi-yearly return has now been abolished since 01/01/2017.


Introduction of the euro 

Latvia adopted the euro as its currency with effect from January 1st, 2014.


VAT refund [Tip]

VAT credit is refunded at the year-end after filing a VAT return for December. Taxpayers can request a monthly VAT refund under conditions.


DOING BUSINESS IN LATVIA [LV] - VAT GUIDE

 

General

VAT Directive

Latvia

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Latvian VAT numbers have 13 characters [LV + 11 digits].

 

What is the local name of the tax?

 

Pievienotas vertibas nodoklis [PVN]

 

VAT rate

VAT Directive

Latvia

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Latvia applies a standard VAT rate of 21% and one reduced rate of 12%.

See VAT rates applied in the EU.  

VAT return

VAT Directive

Latvia

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Quarterly/Bi-yearly

Your company has to report its VAT position by filing periodical VAT returns on a monthly basis provided your annual turnover of the preceding year exceeds LVL 35.000 [+/- € 50.000] or if you have intra-EU transactions.

Other tax periods [quarterly or bi-yearly] are also available under specific conditions.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be filed by electronic means to Latvian VAT authorities no later than the 20th day of the month [20 of N+1] following the tax period [month/quarter] to which it relates.

Statement

VAT Directive

Latvia

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company has to file an annual VAT return in addition to the periodical VAT returns.

The statement should be filed before May 1st [to check October 1st] of the year following the reporting period.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month and submitted by electronic means or on paper [Form PVN2] to Latvian VAT authorities respectively by the 20th day of the month [20 of N+1] and by the 15th day of the month following the reporting period [month].

Filing the statement on a quarterly basis is not possible.

Payment

VAT Directive

Latvia

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return - no later than the 20th day of the month following the tax period [month/quarter/bi-annual] to which it relates. 

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required in Latvia.

 

VAT refund

VAT Directive

Latvia

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

 A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for. 

Special measures for foreign companies

VAT Directive

Latvia

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is not applicable to domestic supplies of goods except for scrap metal carried out by suppliers not established in Latvia.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is not applicable to domestic supplies of services except for construction services.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

Yes

Do special arrangements apply to "call-off-stock"?

 

Yes

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

No

 

VAT on import

VAT Directive

Latvia

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Latvia has not introduced VAT warehousing regime.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.

 

Miscellaneous

VAT Directive

Latvia

Intrastat Threshold  

Dispatches: € 100,000

Arrivals : € 180.000 

Distance Sales - Threshold  

 € 35,000

See various thresholds applied in the EU

Ministry of Finance   website

Go back Up

OUR SERVICES

BENEFIT FROM

  • A global solution that cares for your business
  • VAT expertise in the 28 Member States
  • Single point of contact for VAT compliance across Europe
  • Multilingual team [English, French, Spanish, Portuguese, Italian, Dutch]

Do you want to know more about us ?

Scroll to top