Turnover (neto apgrozījums)
In Latvian: Apgrozījums (neto apgrozījums)
Net turnover (neto apgrozījums) is revenue from selling products or goods and providing services, after deducting discounts granted, value added tax and other taxes directly linked to turnover.
It is the first line of the profit or loss account. Income outside the main business, such as a gain on selling a fixed asset or an insurance payout, is not part of it and goes under other operating income.
Net turnover is also one of the company size criteria: EUR 900,000 for a micro-entity and EUR 10,000,000 for a small company, with the category set by two of the three criteria.
"Turnover" means different amounts in different laws. The VAT registration threshold counts domestic supplies of goods and services excluding VAT, the Micro-enterprise Tax Law treats turnover as business income, and the EUR 300,000 limit in the Accounting Law refers to turnover (revenue) from business transactions.
Example
In 2025 SIA "Ozols" issues invoices for EUR 121,000, of which EUR 21,000 is VAT. It later grants clients EUR 2,000 of discounts, excluding VAT. Net turnover is EUR 98,000: 100,000 − 2,000.
How Fakts handles it
Fakts adds up your rolling 12-month turnover from issued invoices and warns you as it nears the EUR 50,000 VAT registration threshold.
Legal basis
- Law on Annual Statements and Consolidated Annual Statements, Section 41 likumi.lv
- Law on Annual Statements and Consolidated Annual Statements, Section 5 likumi.lv
- Micro-enterprise Tax Law, Section 1 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.