Registration as a VAT (PVN) Payer in Latvia: Requirements for Companies and Entrepreneurs

When registration is required

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• If the annual turnover exceeds €40,000.
• When providing services or selling goods to other EU countries.
• If a foreign company operates in Latvia.
• Voluntary registration is also possible with lower turnover.

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How to apply

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1. Submit an application via the EDS (Electronic Declaration System).
2. Provide company details, turnover data, and bank accounts.
3. Attach documents proving actual business activity.
4. Wait for a decision from the VID (State Revenue Service).

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Processing time

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VID usually reviews applications within 10 business days. Additional documents may be requested if needed.

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Benefits of registration

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• Ability to issue invoices with VAT.
• Right to reclaim input VAT.
• Easier participation in cross-border EU transactions.
• Higher credibility with partners and clients.

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Liability for non-registration

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If a business exceeds the threshold but fails to register:

• VID will calculate VAT for the entire period.
• Fines and late payment interest will be applied.
• In serious cases, bank accounts may be restricted.

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Practical tips

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• Monitor turnover regularly.
• Keep accounting records ready.
• Consider voluntary registration when approaching the threshold.

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Registering as a VAT payer in Latvia is a key step for business growth. Timely registration helps avoid penalties, expands cooperation opportunities, and simplifies operations within the EU market.