VAT group (PVN grupa)

A VAT group (PVN grupa) is two or more registered VAT payers in the same corporate group, registered in the VID VAT register and treated as a single taxable person for VAT. Supplies between members are outside the scope of VAT.

A VAT group can be formed by capital companies in one group within the meaning of the Group of Companies Law, and by a Latvian branch of a foreign company in the same group. At least one member must have made taxable supplies worth EUR 350,000 or more in the previous 12 months, and the members sign a founding agreement naming the lead company.

The group receives a separate registration number used only for the group’s return and payments; with outside partners each member keeps using its own VAT number. The group always files monthly, and the return’s annexes are filed for each member separately.

A VAT payer can belong to only one VAT group at a time, and there is no limit on the number of members. If one of two members uses a VAT number from another EU country in a transaction between them, the ordinary VAT rules apply to it.