VAT registration threshold

The Latvian VAT registration threshold is EUR 50,000: once the value excluding VAT of a business’s domestic supplies of goods and services in a calendar year exceeds it, the business must register in the VID VAT register. Below the threshold registration is optional.

The threshold is counted per calendar year from 1 January, not over a rolling 12 months; this rule has applied since 2025. It includes taxable supplies and some exempt ones, such as insurance and financial services, sales of real estate and residential letting. Sales of fixed assets and intangible assets are left out.

If the threshold is exceeded by no more than EUR 5,000, registration can wait until the end of the year: the application is due by 30 November, or by 31 December if the threshold was crossed after 30 November. If that EUR 5,000 margin is exceeded as well, the application is due by the 15th of the following month. A business that crossed the threshold last year may not trade unregistered this year.

The threshold does not cover everything. Supplying services to a business in another EU country requires registration before the first transaction, and purchases of goods from other EU countries have their own EUR 10,000 threshold.