Intra EU Goods Transport Treatment in Single Market

Haulier	Customer	Conditions	VAT position
Latvia VAT payer	Latvia VAT payer	Freight transportation within the EU	Haulier applies Latvian VAT (21%)
Latvia VAT payer	Other EU State VAT payer	Freight transportation within the EU	Haulier does not apply Latvian VAT. The Customer has to apply its country’s VAT according to the reverse charge rule
Latvia VAT payer	VAT non-taxable person (e.g. individual)	Freight transportation within the EU which starts in Latvia	Haulier applies the Latvian VAT, since the transportation starts in Latvia
Latvia VAT payer	VAT non-taxable person (e.g. individual)	Freight transportation within the EU which ends in Latvia	The place of supply is the EU State where the transportation starts, so the haulier has to register in that country as a VAT payer and apply that country’s VAT
Other EU State VAT payer	Latvia VAT payer	Freight transportation within the EU which starts in Latvia	Haulier does not apply VAT. The Customer has to apply Latvian VAT according to the reverse charge rule
Other EU State VAT payer	VAT non-taxable person (e.g. individual)	Freight transportation within the EU which starts in Latvia	Haulier has the obligation to register and pay VAT in Latvia, since the transportation starts in Latvia
Other EU State VAT payer	VAT non-taxable person (e.g. individual)	Freight transportation within the EU which ends in Latvia	Latvian VAT does not apply. The haulier has to apply the VAT in the country where the transportation starts
Latvia VAT payer	VAT payer or an individual	Import of goods in Latvia	If the transportation costs are included in the VAT taxable amount, the service is subject to 0% VAT
Latvia VAT payer	VAT payer or an individual	Import of goods in Latvia, if the final destinatination is another EU State	Transportation with the EU. However, if the transportation expenses are included in the value of the goods, the service is subject to 0% VAT.
Other EU State payer	VAT payer or an individual	Importation of the goods in another EU State, provided that Latvia is final destination	Transportation with the EU. However, if the transportation expenses are included in the value of the goods, the service is subject to 0% VAT.