Even if you’ve always stayed on top of your sales tax payments, there may be other taxes you’re responsible for—one of them being Value Added Tax (VAT). VAT is applied at every stage of production and distribution where value is added to goods or services. It’s used in over 170 countries worldwide, including Latvia, where it’s known as Pievienotās vērtības nodoklis (PVN). As a key part of Latvia’s tax system, understanding how it works is essential for both businesses and individuals.

So, how can you get a VAT number in Latvia? When are you obliged to pay it? What else should you know about VAT tax? We explain this and more in the guide below.

What is VAT?

In the European Union, sellers can take advantage of the single market system. For the system to work properly and fairly, Value Added Tax is a critical component.

When the European Union was established in 1993, it didn’t have shared rules on indirect taxation. Consequently, it was difficult to determine how much tax should be included in the final price of a product or service. As a result, many countries overestimated the tax refunds they could claim after exporting goods.

So, why does this matter? When it’s impossible to determine the exact amount of tax that needs to be refunded, sellers can offer their products in some markets for a lower price. This means that some countries might illegally boost their economic situation in ways that violate fair trade principles.  That’s why VAT is so important. In simple terms, VAT numbers ensure that tax authorities can follow transactions within a country’s tax system.

In Latvia, the standard VAT rate is 21%; however, in some cases, a reduced rate of 12% or 5% is applied.

When do you have to register for VAT in Latvia?

If you’re selling your products or services in Latvia, you might be wondering – when do I have to get a VAT number? Regardless of the threshold, you must join the VAT register if:

  • Your business is using services from EU or third-country taxpayers.
  • Your company provides services or products to EU taxpayers.

Moreover, you must sign up for the VAT register before receiving these services, regardless of the volume of transactions.

You must also join the VAT register if your company carries out VAT-taxable transactions. However, in this case, you can take into account the registration threshold (which, as of 2025, is €50,000).

It’s also important to note that non-resident businesses are subject to Latvian VAT registration even if your turnover is less than €50,000.

Here are a couple of scenarios when you are typically expected to join the VAT register:

  • Your business is importing goods to Latvia.
  • Your business is purchasing, producing, or selling goods in Latvia.
  • You’re a foreign company that keeps its stock in warehouses in Latvia or uses fulfillment services like Amazon’s FBA.
  • You’re a foreign company that organizes paid exhibitions or training in Latvia.
  • You’re a foreign company that’s selling goods to consumers in Latvia through online websites (in this case, the registration threshold applies also for non-resident businesses, and it is €10,000).

latvia vat number

Can your business not register for VAT?

There are some instances when an EU company is not required to sign up for the VAT registry. For example:

  • You don’t have to join the VAT registry if your business sells goods or services where the buyer (not the seller) is responsible for paying VAT to the government.
  • Your transactions occur in a customs warehouse or a free zone, either for export or for handling non-EU goods.
  • Your business moves goods between customs warehouses or free zones within the EU, including non-EU goods and EU goods meant for export.

Note that other exemptions might apply in certain situations, which is why it’s best to talk to an experienced tax consultant.

How to register as a VAT payer

If you want to register as a VAT payer in Latvia, there are three ways you can do it:

  • By submitting your documents electronically (https://eds.vid.gov.lv/login/).
  • By sending your documents via e-mail (remember, you’ll need an electronic signature!) to vid@vid.gov.lv.
  • By heading to one of the SRS client centres in person.

Upon registration, you’ll be asked to submit a number of documents, including:

The next steps

Once you’ve filled out all the documents and submitted your application, the SRS will decide whether to include you in the VAT registry within 15 business days. If the decision is favorable, you’ll receive a registration certificate.

However, if SRS rejects your request, you’ll receive an explanation for the refusal within five business days. In this scenario, you have the right to edit your application, add any missing information, and resubmit it for another review.

Final thoughts: How to get a VAT number in Latvia

Navigating taxes can give a headache even to those who think of themselves as finance-savvy. When you’re leading your business endeavours in a country where you’re not a resident, this becomes even trickier. So, if you’re feeling overwhelmed by the process, know you’re not alone!

Thankfully, there is a solution – you can hire a professional to help you with VAT registration in Latvia or other tax compliance services. Get in touch with our team here to get expert advice on your specific situation.

 

Frequently Asked Questions

How much is the VAT in Latvia?

In Latvia, the standard VAT rate is 21%. However, in some cases, a reduced rate of 12% or 5% applies, such as for specific food products, medical supplies, and public transportation services.

How do I claim VAT back?

If you’re an EU-based business and have paid VAT in Latvia but aren’t established there, you can request a refund by submitting an online application through your home country’s tax authority.

What is the VAT number for Latvia?

In Latvia, a VAT number consists of the country code ‘LV’ followed by 11 digits