Intra-Community supply of goods

An intra-Community supply of goods (preču piegāde ES teritorijā) is a supply in which goods are dispatched or transported from Latvia to another EU member state. When the buyer is VAT-registered in another member state with a valid VAT number and transport documents prove the dispatch, the supply is zero-rated and the buyer accounts for VAT in the destination country.

The 0% conditions are in Section 43(4) of the VAT Law: the buyer’s VAT number is valid at the time of the transaction and appears on the invoice and transport documents, and the goods actually leave Latvia for another member state. The number is checked in VIES, and the seller keeps the transport documents.

The supply is reported in the VAT return and, for each month, in the PVN 2 report with code “G”. A business making supplies of goods to other EU countries files monthly.

If the buyer is not VAT-registered, for example a private individual, the sale is a distance sale, not a zero-rated supply. While distance sales and electronic services to all other EU countries together stay within EUR 10,000 a year, Latvian VAT applies; above that, the buyer’s country’s VAT applies, which can be declared through the One-Stop Shop (OSS).