# Latvia VAT Guide for 2026: Rates, Registration & Compliance

Canonical: https://trykintsugi.com/sales-tax-guides/europe/latvia
Published: September 22, 2026

Latvia's standard VAT is 21%, with reduced 12% and 5% bands. This guide covers registration, OSS, and filing obligations.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## Key Takeaways

Latvia applies a standard VAT (PVN) rate of 21% to most goods and services, including SaaS and digital products, with a 12% reduced rate for pharmaceuticals, medical devices, and infant food, and temporarily, from 1 July 2026 to 30 June 2027, for bread, milk, poultry and eggs. A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Most financial and insurance services, healthcare, and education are exempt; exports and intra-EU B2B supplies are zero-rated.

## Taxability Snapshot

## Sales Tax Rates

Latvia applies a standard VAT (PVN) rate of 21% to most goods and services, including SaaS and digital products sold to consumers. Reduced and special rates apply to specific categories:

| Rate | Applies to |
| --- | --- |
| 21% (standard) | most goods and services, SaaS, and digital services |
| 12% (reduced) | pharmaceuticals, medical devices, infant food, fresh fruit, berries and vegetables typical to Latvia, domestic heating, public transport, hotel accommodation, books and press; bread, milk, poultry and eggs from 1 July 2026 to 30 June 2027 |
| 5% (reduced) | books and press published in Latvian or in EU, EEA, OECD and other listed languages |
| 0% (zero) | intra-EU supplies and exports |

Electronically supplied services are taxed where the customer is located, so a foreign SaaS seller charges Latvian VAT on B2C sales and reports it through the EU One Stop Shop (OSS).

#### Registration & nexus threshold

Latvia uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Latvia, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [2]. Registration steps are in the How to Register section.

#### Filing frequency & deadlines

Latvian VAT returns are filed monthly by default, with quarterly filing permitted for lower-turnover businesses without intra-EU supplies. The return is due the 20th of the following month and payment the 23rd.

#### Exemptions

Exempt supplies include most financial and insurance services, healthcare, education, and the sale or letting of immovable property. Exports and intra-EU B2B supplies are zero-rated.

#### Penalties

Late payment accrues daily interest plus penalties for each day of delay, and understated tax draws fines of 10% to 30% or more of the assessed amount depending on severity.

#### Sources

- [1] [European Commission — VAT rates (Latvia 21% standard, 5% and 12% reduced)](https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-rates_en)

- [2] [European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)](https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_en)

- [3] [Latvia State Revenue Service (VID) — VAT (PVN)](https://www.vid.gov.lv/en)

Verified July 2026 against European Commission and Latvia State Revenue Service guidance.

#### Frequently asked questions

### What is the VAT rate in Latvia in 2026?

Latvia's standard VAT rate is 21%. Reduced or special rates of 12%, 5% and 0% apply to categories such as food, books, medicines, and accommodation.

### Do I need to register for VAT in Latvia as a foreign business?

Yes. Non-established businesses have no registration threshold in Latvia and must register before their first taxable sale. The domestic small-business exemption applies only to Latvian-established businesses.

### Is SaaS taxable in Latvia?

Yes. SaaS and other electronically supplied services are taxed at the 21% standard rate. B2C sales are taxed where the customer is located and are usually reported through the EU One Stop Shop (OSS).

### How often are Latvia VAT returns filed?

Latvian VAT returns are filed monthly by default, with quarterly filing permitted for lower-turnover businesses without intra-EU supplies. The return is due the 20th of the following month and payment the 23rd.

### What is the EU distance-selling threshold for Latvia?

EUR 10,000 per year across all EU B2C sales of goods and digital services. Above it you charge Latvian VAT on sales to Latvian consumers and report through OSS.

### What are the penalties for late VAT in Latvia?

Late payment accrues daily interest plus penalties for each day of delay, and understated tax draws fines of 10% to 30% or more of the assessed amount depending on severity.