Foreign businesses selling goods and services across EU borders are generally not required to register for VAT in Latvia. This exemption aligns with the European Union’s objective of promoting a free internal market.
However, there are important exceptions, which can be complicated due to varying interpretations of VAT rules across EU member states. If a foreign company falls under one of these exceptions, it must register for VAT in Latvia, even without a physical presence such as a branch or office.
A foreign company must register for VAT in Germany in the following cases:
Turnover exceeds 50,000. If the entity’s taxable supplies in Latvia exceed 50,000 EUR within 12 months.
Intra-community acquisition value exceeds 10,000 EUR
Distance sales value exceeded 10,000 EUR. The entity is engaged in distance sales (B2C) and the value of goods supplied exceeds 10,000 EUR
Cross-border services. The entity supplies or receives cross-border services, where such services are deemed to be supplied at the place of the recipient of services.
Warehousing in Latvia: Storing stock in a Latvia warehouse and selling to Latvian customers.
Consignment Warehouses: Maintaining a Latvian consignment warehouse for product sales.
Marketplace Sales. Selling through Latvian-based online marketplaces such as Amazon.
Imports and Sales: Importing goods into Latvia from outside the EU or another EU member state and selling them in Latvia.
Intra-Community Transactions: Moving goods between Latvia and other EU member states.
Event Organization: Hosting live events such as conferences, art exhibitions, or educational workshops in Latvia.
If you determine that your business requires Latvia VAT registration, feel free to contact us at info@taxwise.lv, and we will assist you promptly.
