If a company not established in Latvia is providing ‘taxable supplies’ of goods or services in Latvia, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.
It is important that all businesses with any commercial activity in Latvia assess their compliance obligations and register prior to commencing taxable transactions if applicable.
If you are currently, or plan to conduct any of the above (or similar) transactions in Latvia, you should contact us immediately for a complimentary consultation.
No. However, in certain cases an annual statement is required in certain conditions, such as: if any output or input VAT adjustment is made, or in case of a change of the ratio of taxable and exempt supplies, or in case of the supplies only consisting of exempt financial services.
Services provided by a non-established business to taxable persons established in Latvia are subject to the reverse charge and the customer accounts for the VAT. Please contact us if you would like details of how the extended reverse charge applies in Latvia.
Optional. A business established in a country outside the EU may appoint a tax representative to register for VAT in Latvia.