Latvia operates a value added tax (VAT) system known locally as Pievienotās vērtības nodoklis (PVN). As an EU member state, Latvia’s VAT framework is aligned with EU VAT Directive principles.
Latvian VAT is administered by the State Revenue Service (Valsts ieņēmumu dienests, VID). VID is responsible for issuing guidance, processing VAT registrations and returns, overseeing electronic reporting systems, and enforcing VAT compliance.
Businesses carrying out taxable activities in Latvia — whether resident or nonresident — must comply with Latvian VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant invoices, maintaining appropriate records, and filing periodic VAT returns.
