VAT in Latvia
The VAT in Latvia is known as Pievienotās vertības nodoklis (PVN) in their local language.
What are the VAT rates in Latvia?
The VAT rates in Latvia are the following:
- Standard rate: 21%
- Reduced rates: 5% and 12%
Latvia has opted for the reduced VAT rates on several items allowed by the VAT Directive.
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.
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Foodstuff5%
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Water supplies21%
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Pharmaceutical products12%
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Medical equipment for disabled persons12% and 0%
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Children´s car seats12%
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Passenger transport12%
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Books5%
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Books on other physical means of support5%
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Newspapers5%
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Periodicals5%
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Admission to cultural services (theatre, etc)Exempt
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Admission to amusement parksExempt
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Pay TV / cable21%
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TV licenses21%
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Writers / composers21%
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Hotel Accommodation12%
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Restaurant and catering services21%
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Restaurants21%
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Medical and dental careExempt and 21%
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Repair of shoes and leather goods21%
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Repair of clothing and household linen21%
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Hairdressing21%