Latvia VAT Services

VAT registration in Latvia

 

VAT registration in Latvia

In Latvia, VAT registration is a consumption tax levied on the sale of goods and services. If you conduct business activities in Latvia and meet certain criteria. You may be required to register for VAT and make regular VAT payments to the tax authorities.

If your annual turnover exceeds the threshold set by the Latvian tax authorities (EUR 40,000 as of 2021). You are generally required to register for VAT. Voluntary registration is also possible even if your turnover is below this threshold.

To register for Value Added Tax (VAT) in Latvia, you need to follow the registration process set by the Latvian tax authorities.

 

Collect Required Documentation

Prepare the necessary documents for the VAT registration process. This typically includes:

  • Business identification documents (e.g., registration certificate, articles of association)
  • Identification documents of the responsible persons (e.g., passports, identification cards)
  • Information about the business activities, products, and services offered.
  • VAT Certificate for non resident company.

Complete the VAT registration application form, which can be obtained from the State Revenue Service (SRS) in Latvia. Ensure that the form is filled out accurately and provide all required information. Along with the application form, submit the required supporting documents, such as business identification documents and identification documents of the responsible persons.

VAT Rates

Latvia currently has two VAT rates:

  • Standard Rate: 21%
  • Reduced Rate: 12% (applicable to certain goods and services, such as food products, books, pharmaceuticals, and medical devices)

 

VAT Returns

VAT payments in Latvia are typically made through regular VAT returns. VAT returns summarize your VAT liability for a specific period (usually monthly or quarterly) and must be submitted to the tax authorities.

The deadline for submitting VAT returns and making VAT payment in Latvia depends on the chosen tax period. Generally, the deadline is the 20th day of the month following the tax period. However, if you opt for quarterly returns. The deadline is extended to the 20th day of the second month following the end of the quarter.

 

VAT Payment Methods

VAT payment can be made through bank transfer or other electronic payment methods accepted by the Latvian tax authorities. It is crucial to include the necessary reference details to ensure proper identification when making the payment.

 

VAT Deductions

As a registered taxpayer, you are typically entitled to claim input VAT deductions for VAT paid on your business-related purchases and expenses. This allows you to reduce the VAT liability on your sales by the amount of VAT you have paid on your inputs.

 

Penalties and Interest

Non-compliance with VAT obligations or late VAT payments can result in penalties and interest charges. It is important to fulfill your VAT obligations on time to avoid any potential penalties.

It is important to note that the registration process and requirements may change, so it is advisable to consult with the Latvian tax authorities or seek assistance from a qualified tax professional to ensure compliance with the latest regulations and procedures.