Invoicing unwrought precious metals in Latvia under the reverse charge

For supplies of unwrought precious metals, their alloys, metals clad with precious metal and precious metal scrap in Latvia between VAT-registered businesses, the buyer pays the VAT (Section 143.3 of the Latvian VAT Act). The invoice shows the value without VAT and “nodokļa apgrieztā maksāšana”; investment gold has its own scheme (Section 139). 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 “R6” in part I of VAT 1.
Legal basis
Latvian VAT Act, Section 143.3

Sample invoice

SIA “Parauga Juvelieris”
Invoice No. PJ-2026/009
Date of issue
21/09/2026
Due date
05/10/2026
Supplier SIA “Parauga Juvelieris” Reg. No. 40000000071 VAT No. LV40000000071 Parauga iela 71, Rīga, LV-1071
Customer SIA “Parauga Dārgmetāli” Reg. No. 40000000072 VAT No. LV40000000072 Parauga iela 72, Rīga, LV-1072
DescriptionQtyUnitUnit price excl. VATAmount excl. VAT
Gold scrap, 585 fineness250g55.0013,750.00
Silver scrap, 925 fineness1,200g0.901,080.00

Nodokļa apgrieztā maksāšana / Reverse charge (Latvian VAT Act, Section 143.3)

Total excl. VAT
14,830.00 EUR
Total due
14,830.00 EUR
A specimen with made-up companies, numbers and amounts.

Which goods (Section 143.3(2))

  • Unwrought precious metals and semi-finished forms, unless the investment gold scheme applies (Section 139).
  • Unwrought precious metal alloys and semi-finished forms.
  • Unwrought metals clad with precious metal and semi-finished forms.
  • Scrap and waste of precious metals or metals clad with precious metal.

What is out

  • Finished jewellery and other products that are not scrap.
  • Investment gold, which has the Section 139 scheme.
  • Sales to a private person or a business 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 143.3(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 143.3(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 “R6”.
  • 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 finished jewellery.
  • Invoicing investment gold under Section 143.3 rather than the Section 139 scheme.
  • Printing “VAT 0%”.

Frequently asked questions

Is gold scrap reverse-charged in Latvia?

Yes, when the seller and the buyer are both VAT registered: precious metal scrap and waste are on the Section 143.3 list.

Is jewellery reverse-charged?

No. The rule covers unwrought precious metals, semi-finished forms and scrap, not finished products.

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 account

Sources