globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

11 January 2018

Latvia amends VAT law as of 1 January 2018

Effective 1 January 2018, Latvia has introduced a number of changes to its Value Added Tax (VAT) law. The changes include:

Reduction of threshold for reporting VAT transactions

  • As of 1 January 2018, the threshold for the requirement to include detailed information on domestic transactions in the VAT declaration has been reduced to domestic transactions with a net value exceeding €150 (previously the threshold was €1430).

Extension of the domestic reverse charge regime

  • The domestic reverse charge mechanism is extended to the supply of gaming consoles, metal products, home appliances, construction materials and construction services.

Application of reduced VAT rate of 5% on supplies of vegetables, fruits and berries

  • Supplies of qualifying vegetables, fruits and berries shall be subject to a reduced VAT rate of 5% (they were previously subject to the standard VAT rate of 21%).

Threshold of VAT registration

  • The VAT registration threshold for domestic enterprises has been reduced to €40,000 (previously €50,000).

———————————————
CONTACTS

For additional information with respect to this Alert, please contact the following:

SIA Ernst & Young Baltic, Tax Advisory Services, Riga

  • Marina Kuzenko
    marina.kuzenko@lv.ey.com
  • Edgars Abeltins
    edgars.abeltins@lv.ey.com

———————————————
ATTACHMENT

PDF version of this Tax Alert

Document ID: 2018-5114

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more