VAT Registration in Latvia: Compliance, Procedures, and Refunds

VAT affects pricing, invoicing, input tax recovery, and cross-border trade. In Latvia, the rules are tied to the national VAT Law, the State Revenue Service, and EU VAT rules. This guide covers VAT registrtation in Latvia: how the procedure works, what ongoing compliance requires, and how VAT refunds are filed.

Overview

This table summarizes the current Latvian VAT framework:

Why VAT Matters in Latvia

VAT registration in Latvia is a core tax step for any business selling taxable goods or services. It determines whether the company may charge Latvian VAT, deduct input tax, issue compliant VAT invoices, and participate in intra-EU trade without operational friction.

A correct setup also reduces risk. Late registration, weak documentation, or broken filing routines can lead to refusal, exclusion from the VAT register, and direct attention from the Latvian tax authorities.

Who must register for VAT

Latvian VAT registration becomes mandatory in several common situations under the VAT Law and SRS guidance.

1. 1
   A taxable person must register once domestic supplies in the calendar year exceed €50,000.
2. 2
   A non-registered person or another EU Member State taxpayer acquiring goods in Latvia from the EU must apply once the €10,000 threshold is reached or exceeded.
3. 3
   An EU business making taxable supplies in Latvia may need registration before starting those transactions. The same applies to supplies involving assembly or installation.
4. 4
   A third-country or third-territory business can also fall into Latvian VAT registration when it makes taxable transactions in Latvia.
5. 5
   Distance sellers and certain providers of electronic, telecommunications, and broadcasting services must register within 30 days after the EU-wide €10,000 threshold is reached, unless they use the OSS regime instead.
6. 6
   Suppliers of excise goods must register before the taxable transaction.

Businesses below the threshold may still register voluntarily when that structure is commercially useful.

Required documents for VAT registration

The exact package depends on whether the applicant is Latvian, established in another EU Member State, or a non-EU business. Still, the core set is stable:

• The correct Latvian VAT registration application form for the applicant category.
• A power of attorney, if the filing is signed or submitted by an authorized representative.
• An EDS access document, if the applicant or representative still lacks access to Latvia’s Electronic Declaration System.
• Supporting information the SRS may request to assess the applicant’s real activity, material base, or financial capacity.
• For foreign applicants, documents explaining the planned taxable transactions may also be required.

Obtaining a Latvian VAT number

The procedure is quick when the file is prepared correctly. Latvian VAT registration generally follows five steps.

1. 1
   Prepare the application. Choose the correct registration form. Gather the required supporting documents.
2. 2
   Secure EDS access. All registered VAT persons file reports electronically through EDS, so access should be arranged early.
3. 3
   Submit the file. Domestic applicants may submit through EDS, by secure electronic mail, or in person; foreign applicants normally work through EDS-based channels.
4. 4
   Reply to SRS requests. The authorities may ask for additional information before making a decision.
5. 5
   Receive the decision. The SRS decides within up to five working days after receiving the application, or within five working days after the requested additional information is received. Registration becomes effective when the decision is deemed notified, and the SRS then publishes the registration information on its website.

Format and Validation of Latvian VAT Number

A Latvian VAT number uses the country prefix LV. It appears as LV99999999999. That number should then be checked in VIES for intra-EU trade validation.

VIES returns either a valid or an invalid result. An invalid result does not always mean fraud; it can also mean the number has not yet been activated for intra-EU trade or the registration process is not fully finalized.

VAT Compliance Obligations in Latvia

Once a company enters the register, compliance becomes continuous. Filing, record-keeping, invoicing, and cross-border reporting all move onto a fixed tracker.

Maintaining VAT records and ledgers

A VAT payer must keep records:

• Every taxable transaction;
• Every input tax deduction.

Invoices may be stored on paper or electronically. Businesses must preserve authenticity, integrity, and readability throughout the retention period. Electronic storage is permitted. Records may be kept outside Latvia only where full online access is ensured.

Filing VAT returns

The tax period is usually monthly for businesses above €50,000, for certain intra-EU suppliers, for fiscal representatives, and for newly registered taxpayers during their first six calendar months. Other VAT payers generally use a quarterly period. The VAT return is due within 20 days after the end of the tax period, and VAT must be paid into the single tax account within 23 days.

Annual VAT reporting

Latvia also uses an annual VAT declaration where annual adjustments are required. The VAT 4 declaration is filed electronically through EDS, and the deadline is May 1 of the following year.

Intra-EU and Intrastat reporting

Cross-border operations create extra obligations. The VAT 2 recapitulative statement is filed within 20 days after the tax period, while Intrastat reporting applies once the Central Statistical Bureau thresholds are exceeded and the company is included in the respondent list. Latvia also operates detailed transaction appendices to the VAT return, including invoice-level data for many sales and purchase flows.

VAT-related penalties and enforcement

The SRS may refuse a VAT registration in Latvia if the file is incomplete. It may also exclude a business from the VAT register for failing to file returns after a warning, providing false information, being unreachable at its legal address, or falling into other exclusion grounds set by law.

Application Procedure for VAT Refund in Latvia

For Latvian VAT payers seeking a refund of VAT paid in another EU Member State, the application is filed through Latvia’s Electronic Declaration System and forwarded by the SRS under Directive 2008/9/EC and Cabinet Regulation No. 1514.

• Step 1

  Requirement to be a registered EDS user

  The applicant must first be a registered EDS user. Without EDS access, the refund application cannot be submitted through Latvia’s official channel.

• Step 2

  Filling out the VAT refund application form

  Inside EDS, the taxpayer selects the document group “Outgoing Documents for VAT Refund in the European Union” and then opens the VAT refund application form. The form includes applicant details, refund period, bank account data, business activity code, invoice and import document data, and, in some cases, copies of invoices above the document thresholds.

• Step 3

  Submission by authorized representatives

  An authorized representative may submit the claim. That route is permitted, but the representative must have the proper filing rights inside EDS.

• Step 4

  Signing requirements according to EDS rules

  After the form is completed, it must be signed according to the general EDS signing rules. Corrections are also submitted through EDS.

Latvia VAT Rates and Thresholds

Latvia applies a 21% standard VAT rate. It also uses reduced rates of 12% and 5%, while 0% applies only to supplies expressly listed in the VAT Law, including specific export and intra-EU cases.

The 12% rate covers:

• certain medicines;
• medical devices;
• infant products;
• passenger transport;
• tourist accommodation;
• heat and wood fuel supplied to residents;
• selected food categories.

5% rate applies to certain books, newspapers, magazines, and qualifying electronic publications.

Latvia VAT Invoicing and Documentation

A compliant VAT invoice in Latvia must include:

• issue date;
• unique serial number;
• supplier and customer identification data;
• VAT numbers where required;
• supply date;
• clear description of the goods or services;
• taxable amount;
• applied rate;
• VAT amount.

The standard rule requires an invoice no later than the 15th day after the transaction or advance payment. e-invoincing is permitted if the recipient accepts it and the business ensures authenticity and integrity. Since January 2026, Latvia-registered companies issuing invoices to budget institutions must use structured e-invoices, and related e-invoice data must also be submitted to the SRS for those transactions.

Latvian VAT Refunds

Foreign EU businesses that incur Latvian VAT may recover it without a local establishment in Latvia if they meet the refund conditions and did not make taxable local supplies that require Latvian VAT registration during the refund period, subject to the statutory exceptions. The claim is filed through the tax portal of the claimant’s home Member State and forwarded electronically to the Latvian SRS.

The application may be completed in English or Latvian. The refund period must cover at least three months and no more than one calendar year, unless it is the final part of the year. The filing deadline is September 30 of the following year. Minimum claim amounts are generally €400 for shorter periods and €50 for annual claims or the final period of the year.

Professional Assistance with VAT Registration in Latvia

Bimaris legal team handles Latvian VAT registration matters end-to-end. We provide:

• threshold analysis;
• non-resident assessments;
• EDS onboarding;
• application drafting;
• SRS correspondence;
• invoice review;
• filing calendars;
• VAT refund support.

Where a business is choosing between local registration and an EU simplification such as OSS, we map the permitted route and the related compliance burden before filing.

That approach matters most for foreign groups, e-sellers, and companies with mixed domestic and intra-EU activity. A clean setup at the registration stage usually prevents later disputes over invoices, deductions, refund claims, and reporting deadlines.

Conclusion

VAT registration in Latvia is manageable when the correct filing route, thresholds, and supporting documents are identified from the outset. The entry stage is usually clear. The heavier part comes later. Registration is only the beginning.

After that, the business moves into an ongoing compliance cycle. VAT returns must be filed on time. Invoices must follow the rules. Records also need to be complete and consistent. Refunds add another layer. Cross-border reporting does too. These obligations do not operate separately. They form one compliance system. Latvian tax authorities monitor that system closely, so accuracy matters from the first filing onward.