Invoicing phones, laptops and consoles in Latvia under the reverse charge

For supplies of mobile phones, tablets, laptops, integrated circuit devices and game consoles in Latvia between VAT-registered businesses, the buyer pays the VAT (Section 143.1 of the Latvian VAT Act), with no value threshold. 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 “R4” in part I of VAT 1.
Legal basis
Latvian VAT Act, Section 143.1

Sample invoice

SIA “Parauga Tehnika”
Invoice No. PT-2026/1187
Date of issue
24/09/2026
Due date
08/10/2026
Supplier SIA “Parauga Tehnika” Reg. No. 40000000041 VAT No. LV40000000041 Parauga iela 41, Rīga, LV-1041
Customer SIA “Parauga Birojs” Reg. No. 40000000042 VAT No. LV40000000042 Parauga iela 42, Valmiera, LV-4201
DescriptionQtyUnitUnit price excl. VATAmount excl. VAT
Laptop 14", with charger5pcs780.003,900.00
Smartphone 128 GB8pcs410.003,280.00

Nodokļa apgrieztā maksāšana / Reverse charge (Latvian VAT Act, Section 143.1)

Total excl. VAT
7,180.00 EUR
Total due
7,180.00 EUR
A specimen with made-up companies, numbers and amounts.

Which goods (Section 143.1(2))

  • Mobile phones, including smartphones (since 1 April 2016).
  • Tablets and laptops (since 1 April 2016).
  • Integrated circuit devices such as microprocessors and CPUs, before they are built into an end product (since 1 April 2016).
  • Game consoles (since 1 January 2018).

State Revenue Service guidance: in and out

  • Accessories such as a charger or battery are in only when sold in one set with the device. Accessories sold separately carry ordinary VAT.
  • Preinstalled software sold with the device is in; software sold separately is not.
  • Spare parts such as a screen or glass sold separately are out.
  • TVs, printers, monitors, cars and other goods with built-in chips are out.
  • Two-way radios, GPS navigators and Wi-Fi phones not meant for the mobile network are out.

Sales in a shop to a business

If a VAT payer buys a laptop at retail and the seller cannot verify that the buyer is VAT registered, the seller charges ordinary VAT. The other route the State Revenue Service allows is an advance invoice under the reverse charge, paid by bank transfer.

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 143.1(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 143.1(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 “R4”.
  • 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

  • Reverse-charging chargers, headphones or spare parts sold on their own.
  • Selling a phone VAT-free to an employee at the till without verifying the buyer’s VAT status.
  • Printing “VAT 0%”.
  • Assuming there is a value threshold. Latvian law has none: the rule applies to any amount.

Frequently asked questions

Are laptops reverse-charged in Latvia?

Yes, when the seller and the buyer are both VAT registered in Latvia. The same goes for mobile phones, tablets, integrated circuit devices and game consoles (Latvian VAT Act, Section 143.1).

Is there a minimum amount?

No. Section 143.1 has no threshold, so the rule applies to any amount.

Are phone accessories reverse-charged?

Only when sold in one set with the phone. Accessories sold separately carry ordinary VAT.

What does the buyer do?

Calculate 21% VAT, report it in rows 52 and 62 of the return and in part I of the VAT 1 report with code R4.

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