Selling to Latvia 2026 — VAT Rates, Rules & Compliance

This guide covers the Latvia-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to Latvian customers.

For the underlying EU mechanisms that apply across all member states, see:

• EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
• Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
• Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Latvia (PVN)

In Latvia, VAT is known as PVN (Pievienotās vērtības nodoklis). When you sell to a Latvian consumer under the IOSS scheme, you must charge the correct Latvian PVN rate at checkout.

Standard Rate: 21%

Applies to the majority of goods: electronics, clothing (including children’s clothing), cosmetics, most digital services (SaaS, downloads, streaming), and physical goods not listed below.

Reduced Rate: 12%

Applies to:

• Pharmaceutical products and medical devices
• Baby foods and specialised foods for medical purposes
• Some agricultural products and inputs
• Accommodation and hotel services

Reduced Rate: 5%

Applies to:

• Books (print and digital, including e-books)
• Periodicals and subscriptions to press publications
• Some cultural event tickets

Your e-commerce platform can handle rate overrides, but you must manually assign products to the correct Latvian PVN categories.

Currency: Euro (EUR)

Latvia uses the Euro and has done so since 1 January 2014. All invoices and VAT amounts for Latvia are denominated in EUR.

Selling to Latvian Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to Latvian consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to a Latvian consumer, you must comply with Latvian PVN rules.

IOSS vs non-IOSS in Latvia

If you sell physical goods under €150 to Latvian consumers, registering for IOSS is strongly recommended.

Without IOSS (DAP — Delivered at Place):

1. The parcel is stopped by Latvian customs (Valsts ieņēmumu dienests — VID)
2. Latvijas Pasts (Latvian Post) or a courier contacts the customer to collect outstanding PVN
3. The hidden cost: Latvijas Pasts charges a customs clearance fee — typically €5–€8 per parcel
4. Latvia has a growing e-commerce market with a tech-literate consumer base; unexpected customs charges create friction and returns

IOSS eliminates carrier handling fees because VAT is cleared at the point of sale.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure shipping labels include accurate HS codes and product descriptions.

Selling to Latvian Businesses (B2B)

For sales to a VAT-registered Latvian business, the standard EU B2B rules apply.

1. Validate the PVN number. Latvian VAT numbers start with ‘LV’ followed by 11 digits (e.g., LV12345678901). Always validate on VIES before zero-rating the invoice.
2. Reverse charge. Do not charge VAT. The Latvian business accounts for PVN on their own Latvian return.
3. Invoice statement. Your invoice must clearly state “Reverse Charge” or in Latvian: “Nodokļa maksāšanas pienākuma nodošana”.

Key Compliance Requirements for Latvia

Invoice retention — 5 years (general)

Latvian accounting law requires retention of accounting documents for 5 years from the end of the reporting year, though certain records related to property or fixed assets have longer retention requirements.

Invoice requirements

Latvian invoices must include your VAT number, the customer’s address, a unique sequential invoice number, the PVN rate per line item, and the supply date.

Baltic states context

Latvia is one of three Baltic EU member states (Estonia, Latvia, Lithuania), all using the Euro and sharing similar compliance frameworks. If you sell across all three, your IOSS registration covers all of them, and the compliance overhead is comparable.

E-commerce market

Latvia, like its Baltic neighbours, has high internet penetration and strong cross-border e-commerce adoption. Latvian consumers regularly purchase from EU, UK, and Asian platforms.

Shipping to Latvia: Documentation

• Electronic customs data: ensure your carrier transmits customs data electronically to VID customs.
• Accurate descriptions: use specific product descriptions with correct HS tariff codes.
• IOSS number: if using IOSS, your IOSS number must be electronically transmitted — manual notation is not sufficient.

Related Guides

• EU Overview — IOSS, OSS & VAT Rates
• Selling to EU Consumers — IOSS Guide
• Selling to EU Businesses — Reverse Charge
• EU Selling Setup Checklist

Selling from a Specific Country?

The Latvia-specific rules above apply to any international seller.

• United Kingdom — Post-Brexit, GB sellers shipping to Latvia face standard non-EU customs requirements.
• United States — guide coming soon
• Australia — guide coming soon