Latvia
VAT Basics
Latvian VAT Rates by goods and services.
The standard VAT rate is 21%. The standard VAT rate generally applies for all goods and services for which no exemption, 0% or one of the reduced VAT rates is foreseen.
The first reduced VAT rate is 12%. This reduced rate applies to pharmaceuticals and medical equipment, specialized children's products, some types of energy, national public transport as well as hotel accommodation, among others.
In addition, there is a reduced VAT rate of 5%. This is a temporary VAT rate because, in principle, it will only be in force until 31 December 2023. This reduced rate applies, in general, to certain types of food products, media and subscriptions, and certain printed magazines, among others.
Supplies and services at 0% are the standard supplies, such as exports or intra-Community supplies.
Finally, some supplies are VAT exempt, such as postal services, education and cultural services, financial and insurance transactions, immovable property rental, betting, and gambling.
To confirm the specific VAT rate applicable to your product or service in Latvia, we recommend that you contact us
