Invoicing cereals and oilseeds in Latvia under the reverse charge

For supplies of cereals and industrial crops in Latvia between VAT-registered businesses the buyer pays the VAT (Section 143.2 of the Latvian VAT Act): wheat, rye, barley, oats, maize, buckwheat, triticale, soya beans, linseed and rape or colza seed. The invoice shows the value without VAT and the words “nodokļa apgrieztā maksāšana” (reverse charge); this is the rule as of September 2026.

Updated:

At a glance

Wording on the invoice
Nodokļa apgrieztā maksāšana The Latvian words are mandatory. A reference to the article is optional but tells the customer why no VAT is charged; the English “Reverse charge” can be added for a reader who needs it.
VAT on the invoice
No rate, no VAT amount
Peppol VAT category
AE · VATEX-EU-AE
VAT return, supplier
row 41.1 Row 41.1; every invoice goes in part III of the VAT 1 report whatever the amount.
VAT return, buyer
Calculates 21% VAT: rows 52 and 62, code “R5” in part I of VAT 1.
Legal basis
Latvian VAT Act, Section 143.2

Sample invoice

SIA “Parauga Saimniecība”
Invoice No. PS-2026/044
Date of issue
18/09/2026
Due date
02/10/2026
Supplier SIA “Parauga Saimniecība” Reg. No. 40000000051 VAT No. LV40000000051 “Parauga mājas”, Bauskas novads, LV-3901
Customer SIA “Parauga Graudi” Reg. No. 40000000052 VAT No. LV40000000052 Parauga iela 52, Jelgava, LV-3001
DescriptionQtyUnitUnit price excl. VATAmount excl. VAT
Milling wheat, 2026 harvest58.4t205.0011,972.00
Rapeseed21.2t460.009,752.00

Nodokļa apgrieztā maksāšana / Reverse charge (Latvian VAT Act, Section 143.2)

Total excl. VAT
21,724.00 EUR
Total due
21,724.00 EUR
A specimen with made-up companies, numbers and amounts.

Which crops (Section 143.2(2))

The list is closed. It also covers mixtures of these goods not normally used for final consumption in their unaltered state:

  • wheat, rye, barley, oats;
  • maize, buckwheat, triticale;
  • soya beans, whether or not broken;
  • linseed, whether or not broken;
  • rape or colza seeds, whether or not broken.

What is out

  • Crops not on the list, such as sugar beet and sunflower seed.
  • Processed products that are no longer grain or seed, such as flour.
  • Sales to a buyer that is not VAT registered.

What the invoice must show

  • The customer’s Latvian VAT number (VAT Act, Section 125(1), point 6). Without it the reverse charge cannot apply, since both parties must be VAT registered.
  • The value of the goods or services without VAT (Section 143.2(3)).
  • No VAT rate and no VAT amount (Section 129(3)). The total due equals the total without VAT.
  • The words “nodokļa apgrieztā maksāšana” (reverse charge, Section 125(1), point 16).
  • Every other ordinary detail: date, number, both parties’ names, addresses and VAT numbers, description, quantity, unit and price without VAT.

Payment

The customer pays the invoiced amount without VAT, and only by non-cash means (Section 143.2(5)). The State Revenue Service treats a bank card payment as non-cash.

In the VAT return

  • The supplier reports the value in row 41.1 and lists every invoice in part III of the VAT 1 report whatever the amount, even below 150 euro (Cabinet Regulation No. 40, points 17.3 and 31.3).
  • The customer calculates VAT at 21% and reports it in row 52 as output tax and in row 62 as input tax, and also in row 66 if the purchase is not used for taxable supplies. In part I of the VAT 1 report each invoice carries the code “R5”.
  • The customer reports the tax in the period in which it received the goods or service and the invoice (VAT Act, Section 124(4) and (5)).

In a Peppol e-invoice

The line takes VAT category AE (reverse charge) at a rate of 0, and the VAT breakdown carries the reason code VATEX-EU-AE or the text “Reverse charge” (rule BR-AE-10). BR-AE-02 requires the seller’s VAT number and the buyer’s VAT number or registration number; BR-AE-05 requires the 0 rate.

How long the rule applies

The Latvian VAT Act sets no end date for this section. Its EU legal basis is Article 199a of the VAT Directive, which Directive (EU) 2022/890 allows member states to apply until 31 December 2026. If the EU basis is not extended, the rule may change from 2027, so check the State Revenue Service and likumi.lv near the end of the year.

Common mistakes

  • Adding 21% VAT although the buyer is a VAT payer and the crop is on the list.
  • Reverse-charging flour or other processed products.
  • Printing “VAT 0%”.
  • Accepting cash.

Frequently asked questions

Is grain reverse-charged in Latvia?

Yes: wheat, rye, barley, oats, maize, buckwheat and triticale, when the seller and the buyer are both VAT registered (Latvian VAT Act, Section 143.2).

Is rapeseed reverse-charged?

Yes. Rape and colza seeds, whether or not broken, are on the Section 143.2 list, as are soya beans and linseed.

Is sunflower seed reverse-charged?

No. Latvia’s list is closed and sunflower seed is not on it, so ordinary VAT applies.

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.

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Sources