VAT invoices in Latvia: what to write for each VAT situation
Three questions set the VAT treatment of a Latvian invoice: are you VAT registered, where is the customer, and what are you selling. Each situation has its own required wording under the Latvian VAT Act: the words “nodokļa apgrieztā maksāšana” (reverse charge, Section 125(1), point 16), a reference to the basis of a 0% rate or an exemption (point 15), or simply the right rate with the VAT amount; the table sets them out as of September 2026.
Updated:
Each row shows what the invoice must say, what VAT rate appears, which Peppol VAT category the e-invoice uses and which VAT return row the supplier fills in. Open a situation for a sample invoice, the conditions and the common mistakes.
Everything a Latvian invoice must contain
Domestic reverse charge
| Situation | What the invoice says | VAT on the invoice | Peppol | VAT return row |
|---|---|---|---|---|
| Domestic reverse charge: all sectors | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Construction services | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Timber and timber services | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Scrap metal | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Phones, laptops, tablets, consoles | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Cereals and oilseeds | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Unwrought precious metals | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
| Semi-finished metals | “Nodokļa apgrieztā maksāšana” | No rate, no VAT amount | AE | row 41.1 |
Customers in other countries
| Situation | What the invoice says | VAT on the invoice | Peppol | VAT return row |
|---|---|---|---|---|
| Goods to another EU country | Buyer’s VAT number and a reference to Section 43(4) | 0% | K | row 45, row 43 |
| Services to EU businesses | “Nodokļa apgrieztā maksāšana” and the customer’s VAT number | No Latvian VAT | AE | row 48.2 |
| Export outside the EU | A reference to Section 43(1) | 0% | G | row 48.1, row 43 |
Invoices without VAT
| Situation | What the invoice says | VAT on the invoice | Peppol | VAT return row |
|---|---|---|---|---|
| Not registered for VAT | None required; “not registered for VAT” is advisable | No VAT | O | – |
| VAT-exempt supplies | A reference to the point of Section 52(1) | Exempt | E | row 49 |
Reduced rates
| Situation | What the invoice says | VAT on the invoice | Peppol | VAT return row |
|---|---|---|---|---|
| 12% rate | Rate and VAT amount, split by rate | 12% | S | row 42, row 53 |
| 5% rate: books and press | Rate and VAT amount, split by rate | 5% | S | row 42.1, row 53.1 |
Foreign currency
| Situation | What the invoice says | VAT on the invoice | Peppol | VAT return row |
|---|---|---|---|---|
| Invoice in a foreign currency | VAT also in euro at the ECB rate | Usual rate | S | – |
Finding your situation
- You are not VAT registered: invoice without VAT, and never show VAT (VAT Act, Section 84(10)).
- The customer is a Latvian VAT payer and the goods or services fall in one of seven sectors (construction, timber, scrap metal, electronics, cereals, precious metals, semi-finished metals): domestic reverse charge.
- The customer is VAT registered in another EU country: 0% for goods (Section 43(4)); for services the customer pays VAT at home (Section 19(1)).
- The customer is outside the EU: 0% for exported goods (Section 43(1)); no Latvian VAT on services to businesses.
- The supply is on the Section 52 list: exempt from VAT, with a reference to the point.
- Everything else is 21%, unless the goods or services are in Section 42, which sets the 12% and 5% rates.
Peppol VAT categories at a glance
In an e-invoice each line carries a VAT category from the EN 16931 list. Reduced rates use category S with their percentage in Peppol BIS Billing 3.0; category AA is not on that list.
| Code | Meaning | Rate | Exemption code |
|---|---|---|---|
| S | Standard and reduced rates | 21, 12 or 5 | Not needed |
| AE | Reverse charge | 0 | VATEX-EU-AE |
| K | Intra-EU supply of goods | 0 | VATEX-EU-IC |
| G | Export outside the EU | 0 | VATEX-EU-G |
| E | Exempt from VAT | 0 | Code or text |
| O | Not VAT registered | None | VATEX-EU-O |
Frequently asked questions
What are the VAT rates in Latvia in 2026?
The standard rate of 21%, reduced rates of 12% and 5%, and 0%, for example for exports and intra-EU supplies of goods (Latvian VAT Act, Section 41). The reverse charge is not a rate but a rule under which the buyer pays the VAT.
What does a Latvian invoice say when there is no VAT?
It depends on why. Under the reverse charge, “nodokļa apgrieztā maksāšana”; for a 0% rate or an exemption, a reference to the article of the law; if you are not VAT registered, nothing is required, but you must not show VAT.
How does an e-invoice show why there is no VAT?
With the VAT category (AE, K, G, E or O) and an exemption reason code or text in the VAT breakdown, such as VATEX-EU-AE for the reverse charge.
Is the reverse charge the same as 0% VAT?
No. 0% is a rate; under the reverse charge VAT is paid in full, but the buyer calculates and pays it.
Issue the invoice with the right VAT statement
Fakts keeps the reason on every 0% line, prints the statement under the lines and files the matching Peppol VAT category. The account is free.
Create a free accountSources
- Latvian VAT Act (Pievienotās vērtības nodokļa likums), consolidated text in Latvian (likumi.lv)
- Cabinet Regulation No. 40 of 15 January 2013 on VAT returns (likumi.lv)
- State Revenue Service guide to filling in the VAT return, updated 29 May 2026, in Latvian (vid.gov.lv)
- Peppol BIS Billing 3.0: VAT category codes UNCL5305 (docs.peppol.eu)
- Peppol BIS Billing 3.0: VATEX exemption reason codes (docs.peppol.eu)