Latvia being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.
Standard VAT Rate: 21%
Reduced VAT Rate: 12%
Registration Threshold Distance Selling: 35,000 €
EU VAT number format: LV99999999999
Resident - EUR 50,000
Non resident - There is no registration threshold
IC Acquisitions - €10,000
A person has to register as VAT payer if in the exercise of his economic activity it undertakes taxable supplies defined in the VAT law:
sale of goods, including in-house consumption;
provision of services, including in-house consumption;
Detailed rules regulate reporting requirements of Latvian transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes.