Latvia VAT Compliance Guide
Latvia applies a standard VAT (PVN) rate of 21% (reduced 12% / reduced 5%) under the PVN likums. The compulsory registration threshold is €50,000 annual turnover. Filing is monthly. Latvia mandated B2B e-invoicing via EDI (electronic data interchange) in 2019, and has since tightened requirements: since 2023, e-invoices for public procurement and a growing range of transactions must be transmitted via the SRS (State Revenue Service) e-invoicing portal or a certified EDI access point.
Latvian VAT compliance combines standard EU rates with a maturing e-invoicing infrastructure. The rates are 21% standard, 12% on certain goods (pharmaceuticals, print media, certain foodstuffs), and 5% on essential goods and services. The €50,000 threshold is moderate. Latvia introduced mandatory e-invoicing via EDI in 2019, aligned with EU Directive 2014/55/EU for B2G. Since 2023, the SRS has been expanding structured e-invoicing requirements, moving toward broader digital reporting in line with the EU ViDA package. The practical challenge is ensuring invoices carry the correct supplier PVN reģistrācijas numurs and conform to the EDI / XML format the buyer or authority expects.
VAT Rates
| Rate | Applies To |
|---|---|
| 21% | Standard rate — most goods and services |
| 12% | Reduced — pharmaceuticals, medical devices, certain print media (books, periodicals), certain foodstuffs |
| 5% | Super-reduced — essential foodstuffs (bread, milk, eggs, meat), certain public transport, accommodation, certain medical supplies |
| 0% | Intra-community supplies, exports, international transport |
Registration Thresholds
| Scheme | Threshold |
|---|---|
| Domestic turnover | €50,000 rolling 12-month period — register before exceeding it |
| Distance sales / cross-border services (EU) | €10,000 combined annual threshold across all EU Member States |
| Non-established businesses | Register before making any taxable supply in Latvia |
Filing Requirements
VAT return (PVN deklarācija)
Monthly filing via the SRS (State Revenue Service / VID) electronic declaration system (EDS). Payment due by the 20th of the month following the tax period. VIES is integrated into the monthly return.
E-invoicing (EDI)
Mandatory since 2019 for public-sector invoices (B2G) and transactions subject to public procurement. Structured e-invoices must be transmitted via the SRS e-invoicing portal or a certified EDI access point (XML / Peppol BIS Billing 3.0 compatible). Requirements are being expanded in line with EU ViDA.
Intrastat
Required when intra-EU trade of goods exceeds annual thresholds (currently €400,000 for dispatches / €250,000 for arrivals).
E-Invoicing Status
Latvia mandated B2G e-invoicing in 2019 (EU Directive 2014/55/EU), requiring structured invoices via the SRS e-invoicing portal or a certified EDI access point. Since 2023, requirements have been expanding toward broader B2B digital reporting. Latvia is expected to follow the EU ViDA direction for a comprehensive CTC regime.
Key Deadlines
VAT return + payment: 20th of the month following the tax period. Intrastat: monthly by the 20th.
How Nika Helps
Nika reads every supplier invoice that arrives in the inbox, captures all fields — including the supplier PVN reģistrācijas numurs, the correct Latvian VAT rate (21% / 12% / 5%), and the structured invoice reference where relevant — and files the original PDF the same day, from {price} per processed invoice. That gives the accountant clean records to prepare the PVN deklarācija. Nika does not transmit to SRS or the EDI access point — that remains the accountant's responsibility.
When did Latvia mandate e-invoicing?
Latvia mandated B2G e-invoicing in 2019 (aligned with EU Directive 2014/55/EU), requiring structured invoices via the SRS e-invoicing portal or a certified EDI access point. Requirements are being expanded toward broader B2B digital reporting in line with EU ViDA.
What are the Latvian VAT rates?
21% standard rate on most goods and services, 12% on pharmaceuticals, medical devices, and certain print media, and 5% on essential foodstuffs, public transport, and accommodation. The 0% band covers intra-community supplies, exports, and international transport.