This guide is for e-commerce companies that sell online via web-stores or at marketplaces to Latvian consumers.
VAT Standard rate
VAT Reduced rate
Certain products and services are eligible for the special reduced rate, including:
- Medicine and medical equipment
- Specialized baby food
- Regular transportation services of passengers and their luggage provided in the domestic territory
- Educational literature and original literature
- Newspapers, magazines and other periodicals
- Accommodation services in tourist homes
- Supplies of heating wood to people for consumption in households
- Supplies of thermal energy to people for consumption in households
- Some kind of foodstuffs
See the summary of the EU VAT rates
From the 1st July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of EUR10,000 for all EU members.
In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over EUR 10,000.
If goods or services were used to make taxable supplies in Latvia, VAT in input invoices might be credited. Examples include:
- VAT paid at custom clearance with your EORI number
- VAT paid to Latvian suppliers