The 21% standard rate, Eurozone since 2014, OSS, IOSS, the 2025 phased B2G e-invoicing mandate, and the operational architecture for trading into and inside the EU’s largest Baltic logistics hub.
In 2025, Latvia entered a phased rollout of mandatory B2G e-invoicing through Peppol BIS Billing 3.0. The framework — implemented progressively through 2025 by supplier-size cohort and contract-value threshold — completes Latvia’s transition from a paper-and-PDF B2G procurement environment to a fully electronic structured-data environment for state and municipal procurement. The rollout was a fiscal-modernisation initiative rather than a fiscal-consolidation measure: the substantive PVN rules and rates did not change; only the invoicing transport layer for B2G supplies was upgraded.
For foreign vendors supplying Latvian public sector entities and for Latvian-resident suppliers operating in B2G procurement, the 2025 mandate marked the operational entry into the EU’s ViDA-aligned future. The Peppol BIS Billing 3.0 framework that Latvia adopted is the same EN 16931-compliant standard that ViDA’s 2030 cross-border B2B mandate will require. Latvia’s 2025 B2G implementation is, in effect, a five-year head-start on B2B compliance — the same invoicing infrastructure that handles state procurement today will handle private-sector cross-border supplies by 2030.
This guide is the operator’s view of how Latvian PVN actually works in 2026. We cover the 21% standard rate and the 12% / 5% reduced rate framework, the Eurozone currency context, the EUR 50,000 threshold and registration mechanics, the post-2025 Peppol B2G framework, the OSS/IOSS layer for cross-border B2C, and the operational architecture for both foreign vendors and Latvian-resident businesses.
What this guide covers
01 Snapshot — Latvian PVN at a glance
02 60-second self-check
03 Track 1 — Foreign EU vendor selling into Latvia
04 Track 2 — Non-EU vendor selling into Latvia
05 Track 3 — Riga ports, transit, and sector specifics
06 Track 4 — Local Latvian business
07 Cross-track essentials
08 Common questions
09 Recent changes and the road to ViDA
10 Primary sources
01 · Snapshot — Latvian PVN at a glance
Every figure here is restated and sourced inside the relevant track.
| Item | Latvia |
| Tax system | PVN (Pievienotās vērtības nodoklis) — EU-harmonised VAT under Directive 2006/112/EC |
| Standard rate | 21% |
| Reduced rate (12%) | Pharmaceuticals, medical devices, baby food, books, newspapers, hotel accommodation, certain food categories |
| Super-reduced rate (5%) | Fresh fruit, vegetables, berries from Latvian producers |
| Zero rate | 0% on exports, intra-EU supplies |
| Registration threshold (resident) | EUR 50,000 turnover in 12 months |
| Registration threshold (non-resident) | Nil — first taxable supply triggers registration |
| E-invoicing | B2G mandatory via Peppol since phased rollout from 2025; B2B mandate consultation aligned with ViDA 2030 |
| Filing cadence | Monthly default; quarterly for taxpayers below EUR 50,000 annual turnover with no intra-EU activity |
| Filing deadline | 20th day of the month following the period |
| Currency | Euro (EUR) — Eurozone since 1 January 2014 |
| Tax authority | Valsts ieņēmumu dienests (VID — State Revenue Service) |
| EU framework | Member since 1 May 2004; Union OSS, Non-Union OSS, IOSS available since 1 July 2021 |
| Statute of limitations | 3 years from filing for assessment (extended in fraud cases) |
02 · 60-second self-check
| Question | If yes, do this |
| Are you a non-EU vendor selling B2C goods ≤ €150 to Latvian consumers? | Register for IOSS. Charge 21% PVN. Read Track 2. |
| Are you an EU vendor exceeding €10,000 EU-wide threshold to Latvian consumers? | Union OSS or direct Latvian PVN. Read Track 1. |
| Are you supplying to Latvian B2G entities under the 2025+ Peppol mandate? | Peppol BIS Billing 3.0 transmission required. Read Track 3 and Cross-track Essentials. |
| Are you holding stock in Latvia (Riga ports, fulfilment)? | Direct PVN registration mandatory. Read Track 1 or 2. |
| Are you a Latvian-resident business approaching EUR 50,000 turnover? | Mandatory registration. Read Track 4. |
| Are you supplying B2B services to Latvian businesses? | Reverse charge applies. No Latvian PVN registration needed for foreign supplier. Read Track 1. |
03 · Track 1 — Foreign EU vendor selling into Latvia
Latvia’s Eurozone status since 2014 and Baltic logistics position make it a meaningful intra-EU destination for goods and services flows.
3.1 Union OSS path
EU-wide €10,000 threshold. Above threshold, charge 21% Latvian PVN through Union OSS quarterly returns.
3.2 Direct PVN registration
Mandatory when holding Latvian stock, importing as importer of record (Riga port traffic is meaningful for Baltic imports), intra-Community acquisitions in own name, services with Latvian place of supply outside reverse charge.
3.3 Registration mechanics
Latvian PVN registration through VID Electronic Declaration System (EDS). The Latvian PVN number takes the format LV followed by 11 digits — e.g. LV12345678901. Validated through VIES. Processing typically 4–6 weeks.
04 · Track 2 — Non-EU vendor selling into Latvia
4.1 Worked example — Almaty Technical Solutions LLP
Almaty Technical Solutions LLP is a Kazakh industrial automation and engineering services company providing factory-automation systems to European manufacturing customers. Their Latvian touchpoints:
- Industrial automation equipment supply to Latvian manufacturers (B2B, large project shipments; Latvian buyer typically importer of record; no Latvian PVN registration required).
- On-site commissioning and engineering services performed at Latvian customer facilities (reverse-charge on B2B services; Latvian recipient self-assesses 21% PVN; Almaty Technical does not register in Latvia).
- Occasional service-only B2C consumer engagements (rare for industrial automation, but if present would fall under Non-Union OSS for digital training services or trigger direct Latvian PVN registration for in-person services with Latvian place of supply).
The architecture is the standard non-EU B2B pattern — DAP shipping with Latvian buyer as importer of record, reverse-charge on services. No Latvian PVN registration is required for the primary streams. If Almaty Technical were to shift to DDP terms or hold spare-parts inventory in Latvia, direct registration would follow with appointment of a Latvian-resident fiscal representative.
4.2 Fiscal representative
Non-EU vendors registering directly for Latvian PVN must appoint a Latvian-resident fiscal representative under Article 23 of the Latvian VAT Law. Budget EUR 2,500–EUR 6,000 per year.
05 · Track 3 — Riga ports, transit, and sector specifics
5.1 Riga Free Port and Liepāja Special Economic Zone
Riga Free Port is one of the larger Baltic Sea cargo ports, handling container, general cargo, and bulk commodity flows. Liepāja Special Economic Zone offers customs and tax benefits for qualifying activities. Goods movements through Latvian ports trigger standard EU customs procedures with PVN at the appropriate rate payable by the importer of record.
5.2 B2G Peppol mandate phased through 2025
Latvia’s B2G e-invoicing mandate took effect in phases through 2025, beginning with central government suppliers and extending to municipalities and public-sector enterprises. As of 2026, all B2G suppliers transmit invoices through Peppol BIS Billing 3.0. Foreign vendors supplying Latvian public sector must operate Peppol-compatible invoicing — typically through certified Peppol Access Point providers.
5.3 Tourism and 12% reduced rate
Hotel accommodation in Latvia (Riga, Jūrmala, Liepāja, Daugavpils tourism markets) attracts the 12% reduced rate. Restaurant and catering services attract standard 21%. Boundary mechanics follow standard EU patterns.
06 · Track 4 — Local Latvian business
6.1 The EUR 50,000 threshold
Latvian-resident businesses must register within 15 days of crossing EUR 50,000 in turnover during 12 consecutive months.
6.2 Filing cadence
Monthly default. Quarterly available for small businesses below EUR 50,000 annual turnover with no intra-EU activity. Filing deadline 20th of the month following period.
07 · Cross-track essentials
Standard EU OSS/IOSS/VIES mechanics apply. The 2025 B2G Peppol mandate creates infrastructure for future B2B alignment with ViDA 2030. ViDA 2028–2030 milestones apply on EU-mandated timeline.
08 · Common questions
Q. We supply Latvian central government. Peppol is mandatory — how do we comply?
Connect to the Peppol network through a certified Peppol Access Point provider. Several international providers (Pagero, B2BRouter, Comarch, OpenPeppol-listed providers) and Latvian local providers (Mokslo, others) offer integration services. Most major ERPs (SAP, Oracle, Microsoft Dynamics) have native Peppol localisation packs. Budget EUR 200–EUR 2,000 per year per Access Point connection depending on volume.
Q. Riga port — does transit through Latvia create PVN nexus?
Transit through Latvia under EU customs transit procedure (T1) without releasing goods for free circulation in Latvia does not create PVN nexus. Releasing goods into Latvian free circulation triggers import PVN at the appropriate rate, payable by whoever acts as importer of record.
| Where TaxDo Platform fits TaxDo is building the operating layer that runs the architecture this guide describes — Latvian PVN registration, Peppol B2G integration, OSS/IOSS, Riga port customs interfaces, and the Latvia-EU cross-border architecture — for foreign and local businesses across 100+ jurisdictions. |
09 · Recent changes and the road to ViDA
2014 — Eurozone accession
Effective 1 January 2014, Latvia adopted the euro.
2025 — B2G Peppol mandate phased rollout
Mandatory Peppol B2G e-invoicing phased in through 2025 by supplier-size cohort and contract value.
Outlook 2026–2030 — ViDA
ViDA 2028–2030 milestones apply on EU-mandated timeline. The 2025 Peppol B2G infrastructure provides operational head-start for B2B cross-border e-invoicing mandate from 1 July 2030.
10 · Primary sources & official references
- Valsts ieņēmumu dienests (VID — State Revenue Service)
- Latvian VAT Law (Pievienotās vērtības nodokļa likums)
- VID Electronic Declaration System (EDS)
- VIES VAT number validation
- EU VAT Directive 2006/112/EC
- ViDA package — Council adoption 11 March 2025
- Peppol BIS Billing 3.0
Disclaimer & methodology
This guide was prepared by TaxDo’s editorial team in collaboration with practising Latvian PVN advisors. Every numerical threshold, statutory citation, and procedural detail was verified against the primary sources listed in section 10 on the date of publication (27 May 2026). Always confirm the position applicable to your specific transaction with a Latvian-qualified tax advisor or directly with VID. This guide is general information, not advice on any specific transaction. TaxDo accepts no liability for reliance on this guide in lieu of jurisdiction-specific professional advice.