Latvian VAT registration

In Latvia, the requirement to register for value added tax (VAT) depends on whether the business is established in Latvia and the nature of the taxable activities carried out.

For Latvian-established businesses, VAT registration is required once annual taxable turnover exceeds €50,000 in a calendar year. This is the statutory domestic threshold under the Latvian VAT Law. Businesses below this threshold are not required to register, unless they carry out specific taxable transactions that trigger mandatory registration. 

There is no VAT registration threshold for nonresident businesses making taxable supplies in Latvia. Where a foreign business carries out taxable activities in Latvia and is not established there, VAT registration is generally required from the first taxable supply. 

Latvian businesses making cross-border B2C supplies of goods or services to customers in other EU member states must consider the EU-wide €10,000 One-Stop Shop (OSS) threshold for total cross-border EU sales. Once this threshold is exceeded, businesses must register for the OSS or alternatively register for VAT in the relevant member states. 

Apart from the domestic €50,000 threshold for Latvian-established entities, there are no general simplification thresholds. VAT registration is typically mandatory once the relevant taxable activity is undertaken, particularly for nonresident or cross-border business models.

Foreign businesses may need to register for Latvian VAT if they engage in activities such as: 

• Importing goods into Latvia (imports trigger VAT at customs clearance) 
• Selling goods or services in Latvia directly to Latvian customers 
• Making domestic B2B or B2C supplies within Latvia 
• Providing electronically supplied services or digital products to Latvian consumers where OSS is not used or local registration is chosen 
• Engaging in intra-EU supplies or acquisitions involving Latvia 
• Holding inventory in Latvia (e.g., in a warehouse or fulfilment centre)
• Running ecommerce operations delivering taxable goods into Latvia 

Registration may also be required where a business makes zero-rated intra-EU supplies but also carries out taxable domestic activities. 

To register for VAT in Latvia, applicants (resident or nonresident) typically need to provide: 

• A completed VAT registration application submitted to the State Revenue Service (Valsts ieņēmumu dienests – VID) 
• Legal entity details: company name, legal form, country of incorporation, registered address, directors/owners 
• Description of business activities and expected Latvian taxable turnover 
• Details of taxable supplies to be made in Latvia 
• Power of attorney for a Latvian fiscal representative, where required (generally mandatory for non-EU businesses) 
• Banking and contact details for VAT correspondence 
• Supporting documentation demonstrating the nature of Latvian activities (especially for nonresident applicants) 

Applications are submitted electronically via VID’s Electronic Declaration System (EDS). VAT registration should generally be completed before taxable supplies begin, as late registration may result in penalties or backdated VAT assessments. 

Once approved, VID issues a Latvian VAT number. Processing timelines may vary depending on the completeness and complexity of the application. 

• Structure: LV + 11 digits (e.g. LV12345678901) 
• The LV prefix is used for EU VAT identification and verification purposes, including validation through the VAT Information Exchange System (VIES). 

• Filing periodic VAT returns (monthly or quarterly, depending on turnover and risk profile as assigned by VID) 
• Charging and collecting Latvian VAT at the applicable rates (standard rate 21%) 
• Issuing VAT-compliant invoices in accordance with Latvian and EU invoicing rules 
• Submitting EU Sales Lists (recapitulative statements) and Intrastat reports where applicable 
• Maintaining VAT records and accounting documentation in line with Latvian legislation 
• Using the One-Stop Shop (OSS) where applicable for EU cross-border B2C supplies 
• Paying VAT due by the statutory deadlines 

Failure to comply with Latvian VAT requirements may result in penalties, interest charges, and enforcement action by the State Revenue Service, particularly in cases of late registration, incorrect filings, or unpaid VAT liabilities.