10 Essential Questions About TIN in Latvia

In Latvia, there isn't one single label for a "TIN." Instead, tax identification is tied directly to the entity type:

• For Businesses: The Registration Number (Reģistrācijas numurs) serves as the primary tax identifier. If the business is registered for VAT, this number is used with the "LV" prefix.

• For Individuals: The Personal Code (Personas kods) serves as the TIN for income tax and social security purposes.

Latvia utilizes a highly structured set of IDs to manage its commercial and fiscal registries:

• Registration Number: An 11-digit unique code for all legal entities.

• VAT Number (PVN): The 11-digit Registration Number prefixed by "LV".

• Personal Code (PIN): An 11-digit identifier for natural persons.

• IACS (Integrated Administration and Control System): A specific identifier for agricultural producers receiving EU subsidies.

• EORI Number: Used for customs, typically identical to the VAT number.

Latvian identifiers follow a strict 11-digit logic, but the structure for individuals changed significantly in recent years.

• The Registration Number Structure: Exactly 11 numeric digits (e.g., 40001234567). Most commercial companies start with the digit 4.

• The NEW PIN (Personal Code) Structure: Since 2017, new codes are 11 digits starting with 32, followed by 9 random digits (e.g., 32123456789).

• The OLD PIN Structure: Legacy codes based on birth dates (DDMMYY-XXXXX), still valid but being phased out for privacy.

Technical Insight: As of 2026, Latvia's mandatory e-invoicing system uses the 11-digit Registration Number as the primary routing key. These numbers utilize a specific weighted checksum (Modulus 11). If an e-invoice contains an invalid Registration Number, the Peppol access point or the VID's internal gateway will automatically bounce the document, leading to immediate payment delays and "Late Filing" flags.

The Register of Enterprises (Latvijas Republikas Uzņēmumu reģistrs) is responsible for issuing Registration Numbers to businesses.

The State Revenue Service (Valsts ieņēmumu dienests - VID) manages the VAT (PVN) registry and assigns tax obligations to those numbers. For individuals, the Office of Citizenship and Migration Affairs (PMLP) issues the Personal Code.

Registration Thresholds & Mandates:

• Mandatory VAT Registration: Businesses must register if their turnover from taxable transactions exceeds €50,000 in a 12-month period.

• B2B E-Invoicing (2026): Starting in 2026, all B2B transactions between Latvian residents must be conducted via structured e-invoices. This is no longer optional for SMEs.

• Distance Selling: Non-EU businesses selling to Latvian consumers must register for the OSS (One-Stop Shop) once the EU-wide €10,000 threshold is met.

• Non-Residents: Must register for a TIN if they have a Permanent Establishment or taxable assets in Latvia.

Tax Rates (2026):

• Standard VAT: 21%.

• Corporate Tax: 20% (applied only to distributed profits/dividends).

The registration process is fully digital via the e-Address or the UR portal.

• Step 1: Incorporation: Apply at the Register of Enterprises to receive your 11-digit Registration Number.

• Step 2: VID Registration: Within the same application or separately via the EDS (Electronic Declaration System), apply for VAT status.

• Step 3: Verification: The VID assesses the application (typically within 5-10 days) and adds the "LV" prefix to your number.

• Step 4: E-Invoice Setup: Integrate your accounting software with a certified Peppol access point to comply with the 2026 mandate.

In 2026, verifying the status of a counterparty is a prerequisite for a valid e-invoice.

• Official Registry: Use the VID Public Database to check if a Registration Number is an active VAT payer.

• Enterprise Register: Use the UR.gov.lv portal to verify the legal standing and "Active" status of a company.

• TaxDo Automation: Manual portal checks are too slow for high-frequency trade. TaxDo’s GTL service provides real-time API verification against official Latvian data sources to ensure a Registration Number is valid and the entity is not in liquidation.

With the 21% VAT rate and the 2026 e-invoicing mandate, data integrity in the 11-digit Registration Number is a prerequisite for financial stability. TaxDo provides the essential automation layer:

• GSV (Global Syntax Validation): Instant structural and checksum checks for the 11-digit Registration Number, NEW PIN, and IACS formats.

• GTL (Global Real-Time Tax ID Verify/Lookup): Connects to the VID and UR master data to confirm a business is "Active" and authorized for VAT.

TaxDo TIN Validation Coverage in Latvia

In Latvia, a verified Registration Number is the "Digital Key" for the EDS and the 2026 e-invoicing network.

The State Revenue Service (VID) has implemented "Real-Time Risk Scoring" for the 2026 fiscal year.

• E-Invoice Rejection: If the recipient's Registration Number is invalid, the e-invoice is not "legally delivered," meaning you cannot claim payment.

• VAT Credit Denial: If you pay an invoice to a supplier whose VAT status is inactive, you cannot reclaim the 21% VAT, turning a deductible tax into a direct hit on your margins.

• Fines: Failure to use the mandatory e-invoicing format or providing incorrect tax data can result in fines up to €2,000 per violation.

• EDS Block: Without a verified and linked Registration Number, you cannot access the Electronic Declaration System to file annual reports.