Invoicing goods to another EU country at 0% VAT

Goods sold from Latvia to a VAT-registered buyer in another EU country are charged 0% VAT when the buyer gave a valid VAT number from another member state at the time of the transaction and the goods are actually dispatched there (Section 43(4) of the Latvian VAT Act). The invoice must show the buyer’s VAT number, the 0% rate and a reference to the legal basis, such as “PVN 0% saskaņā ar PVN likuma 43. panta ceturto daļu”; this is the rule as of September 2026.

Updated:

At a glance

Wording on the invoice
PVN 0% saskaņā ar PVN likuma 43. panta ceturto daļu (preču piegāde Eiropas Savienības teritorijā)VAT 0%, intra-Community supply of goods, Article 138 of Directive 2006/112/EC The law sets no fixed phrase: a reference to the VAT Act, to Article 138 of the VAT Directive, or another reference to the legal basis will do (Section 125(1), point 15). Many suppliers print both lines above.
VAT on the invoice
0%
Peppol VAT category
K · VATEX-EU-IC
VAT return, supplier
row 45, row 43 Row 45, also counted in row 43. Fresh fruit, berries and vegetables, bread, milk, poultry and eggs go in row 45.1. The buyer and the amount go on the monthly VAT 2 report.
VAT return, buyer
The buyer declares an intra-Community acquisition at home and accounts for the VAT itself.
Legal basis
Latvian VAT Act, Section 43(4)

Sample invoice

SIA “Parauga Mēbeles”
Invoice No. PM-2026/088
Date of issue
30/09/2026
Date of supply
24/09/2026
Due date
30/10/2026
Supplier SIA “Parauga Mēbeles” Reg. No. 40000000081 VAT No. LV40000000081 Parauga iela 81, Rēzekne, LV-4601
Customer Muster GmbH Reg. No. HRB 000000 VAT No. DE123456789 Musterstraße 1, 10115 Berlin, DE
DescriptionQtyUnitUnit price excl. VATVATAmount excl. VAT
Oak table, 180 × 90 cm4pcs640.000%2,560.00
Oak chair16pcs95.000%1,520.00

PVN 0% saskaņā ar PVN likuma 43. panta ceturto daļu (preču piegāde Eiropas Savienības teritorijā)

Intra-Community supply of goods, Article 138 of Directive 2006/112/EC

Total excl. VAT
4,080.00 EUR
VAT 0%
0.00 EUR
Total due
4,080.00 EUR
A specimen with made-up companies, numbers and amounts.

When 0% applies

Section 43(4) of the VAT Act requires both conditions at once:

  • The buyer gave you a VAT number from another member state that was valid at the time of the transaction, and it appears on the invoice and the transport documents.
  • The goods are dispatched or transported from Latvia to another member state, and transport documents in your hands prove it.
  • If either condition fails, 0% cannot be applied. Check the number in the European Commission’s VIES before you ship.

What the invoice must show

  • The buyer’s VAT number with its country prefix, e.g. DE123456789 (Section 125(1), point 6).
  • The 0% rate and a VAT amount of 0.00.
  • A reference to the legal basis: Section 43(4) of the VAT Act or Article 138 of the VAT Directive (point 15).
  • The date of supply, if it differs from the date of issue (point 7).
  • Every other ordinary detail: number, date, both parties, goods, quantities and the price excluding VAT.

Deadlines, the VAT return and VAT 2

Issue the invoice by the 15th of the month after the month of supply (Section 131(2), point 1). An advance received before such a supply needs no VAT invoice (Section 127(1), point 2).

Once you make a 0% supply of goods to another member state, your VAT period becomes a calendar month until the end of the year (Section 115(1) and (5)). On the return the value goes in row 45; the foods listed in Section 42(16) (fresh fruit, berries and vegetables, bread, milk, poultry, eggs) go in row 45.1, and both are counted in row 43. The VAT 2 report, filed monthly with the return, lists each buyer’s VAT number and amount (Section 118(6)).

In a Peppol e-invoice

The line takes VAT category K (intra-Community supply) at a rate of 0 with the exemption reason code VATEX-EU-IC. The EN 16931 rules require both the seller’s and the buyer’s VAT numbers (BR-IC-02), the actual delivery date or invoicing period (BR-IC-11) and the deliver-to country code (BR-IC-12).

Common mistakes

  • Applying 0% to a buyer with no valid VAT number, such as a private person. That is not a 0% intra-EU supply.
  • Printing only “VAT 0%” with no reference to the law or the Directive.
  • Having no transport documents proving the goods left Latvia for another member state.
  • Putting services to EU businesses in row 45. They belong in row 48.2.
  • Forgetting the VAT 2 report, or that the VAT period has become monthly.

Frequently asked questions

What VAT rate applies to goods I sell to a company in Germany?

0%, if the buyer has a valid German VAT number and the goods are actually shipped to Germany (Latvian VAT Act, Section 43(4)). If either condition fails, the Latvian rate applies.

What should the invoice say for goods sold to the EU?

The buyer’s VAT number, the 0% rate and the basis, for example “PVN 0% saskaņā ar PVN likuma 43. panta ceturto daļu” and, for the buyer, “Intra-Community supply, Article 138 of Directive 2006/112/EC”.

Can I use 0% when the EU buyer is a private person?

No. Section 43(4) requires the buyer’s VAT number. Sales to private persons in other EU countries follow the distance selling rules (Sections 10.1 and 13.1).

When is the invoice due for goods shipped to another EU country?

By the 15th of the month after the month of supply (Section 131(2)).

Which VAT return row is used for intra-EU supplies of goods?

Row 45, or row 45.1 for the foods in Section 42(16). Both are counted in row 43, and the buyers are listed on the VAT 2 report.

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