Intra-Community acquisition of goods

An intra-Community acquisition of goods (preču iegāde ES teritorijā) is a purchase in which goods are dispatched or transported from another EU member state to Latvia. A VAT-registered seller in the other state zero-rates the sale, and the buyer accounts for VAT in Latvia at the Latvian rate.

A Latvian VAT payer calculates VAT on the acquisition at the same rate that would apply to the goods bought in Latvia and reports it as output VAT in its return. Where the goods serve taxable supplies, it deducts the same amount as input VAT, so usually nothing is paid to the budget.

A business that is not VAT-registered must register once its purchases of goods from other EU countries reach EUR 10,000 in a calendar year. Since 1 July 2025 it can use a special registration that does not make it add VAT to its own Latvian invoices, but also gives no right to deduct input VAT.

The place of acquisition is the country where transport of the goods ends. If the buyer uses a Latvian VAT number for the purchase, the acquisition is treated as made in Latvia unless the buyer proves VAT was applied in the destination country.