Filing a VAT Declaration (PVN) in Latvia: Deadlines, Procedure, Common Mistakes

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The VAT declaration is one of those documents filed every month that does not forgive errors. For a VAT payer in Latvia, a missed deadline means automatic penalties, and a calculation error can trigger tax reassessment and a VID audit. In this guide, we will walk through the complete procedure for filing a PVN atskaite in Latvia: from taxpayer registration to submitting the declaration through EDS. Information is based on the VAT Law and State Revenue Service (VID) data.

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Who Must File a VAT Declaration in Latvia

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The obligation to file a VAT declaration arises from the moment of registration in the VID VAT register. Registration is mandatory when the enterprise's turnover in the previous 12 months exceeds 40,000 euros. Voluntary registration is available at any turnover level. After registration, the enterprise must file a VAT declaration monthly, regardless of whether taxable transactions occurred that month. Even a zero declaration must be filed on time.

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VAT Declaration Filing Deadlines

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The standard filing period is monthly. The declaration for the previous month is due by the 20th of the current month. For example, the January 2026 declaration must be filed by February 20, 2026. VAT payment is also due by the 20th. For small enterprises with turnover under 40,000 euros per year, a quarterly regime is available: filing by the 20th of the month following the quarter.

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How to Complete and File the VAT Declaration Through VID EDS

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The VAT declaration is filed exclusively electronically through VID EDS (eds.vid.gov.lv). Paper forms are not accepted. Login from 2026 requires Smart-ID, eID, eParaksts, or internet banking (until end of 2026).

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VAT Declaration Structure

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• Line 40: taxable transactions at the standard rate (21% in 2026)
• Line 41: taxable transactions at reduced rates (12% and 5%)
• Line 50: calculated (output) VAT amount
• Line 60: input VAT (pre-tax) eligible for refund
• Line 61: intra-EU acquisitions
• Line 62: services received from abroad (reverse charge)
• Line 70: VAT payable to budget (difference between lines 50 and 60)
• Line 80: VAT refundable from budget

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Step by Step Completion

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• Step 1: Log into EDS via Smart-ID, eID, or eParaksts
• Step 2: Navigate to Documents → PVN deklarācija
• Step 3: Select the reporting period
• Step 4: Enter taxable transaction data and calculated VAT
• Step 5: Enter input VAT data from received invoices
• Step 6: Verify the final amount payable or refundable
• Step 7: Electronically sign and submit

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The EDS system automatically cross-references data with electronic invoices (e-invoices), mandatory for all domestic transactions since 2026.

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VAT Rates in Latvia in 2026

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• Standard rate: 21% (most goods and services)
• Reduced rate 12%: medications, certain food products, heating, public transport, hotel services
• Reduced rate 5%: fresh locally produced vegetables, fruits, and berries

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From mid 2026, a VAT reduction on certain food products is expected.

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Common Mistakes When Filing VAT Declarations

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Mistake 1: Missing the deadline

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The declaration must be filed by the 20th. Even a single day delay triggers automatic penalties for each day of delay.

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Mistake 2: Incorrect rate application

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Applying the standard 21% rate to goods or services that qualify for the reduced 12% or 5% rate, or vice versa.

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Mistake 3: Including exempt transactions in taxable turnover

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Financial services, medical services, and education are VAT exempt. Including them in taxable turnover results in excess tax calculation.

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Mistake 4: Claiming input VAT on improperly documented invoices

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For input VAT refund, invoices must contain all mandatory details: supplier's VAT number, date, description, amount excluding VAT, and VAT amount as a separate line.

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Mistake 5: Not accounting for intra-EU acquisitions (reverse charge)

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When purchasing from EU suppliers, the reverse charge mechanism applies. Failing to reflect this in the declaration creates discrepancies detectable through the VIES system.

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VAT Declaration Correction

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If an error is discovered after filing, a corrective declaration (labojums) must be submitted through EDS. Corrections may be filed within 3 years. If the correction increases the payable amount, penalties accrue from the original deadline.

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VAT Refund From the Budget

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If input VAT exceeds output VAT, the enterprise is entitled to a budget refund. Standard refund processing takes 30 days. For new VAT payers (less than 1 year since registration), the period may extend to 60 days.

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Accounting Service Costs for VAT Declaration Filing

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• Monthly PVN declaration preparation and filing: 30 to 80 euros per period
• Quarterly declaration: 50 to 120 euros
• VAT reporting within full accounting service: usually included in the monthly rate (200 to 400 euros for small enterprises)
• Declaration correction: 30 to 50 euros
• Consultation on complex operations: 30 to 60 euros per hour

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Frequently Asked Questions

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How often must a VAT declaration be filed in Latvia?

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Standard regime: monthly, by the 20th of the following month. For enterprises with turnover under 40,000 euros per year, a quarterly regime is available.

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What happens if a zero declaration is not filed?

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Filing is mandatory even without taxable transactions. Non-filing results in penalties even when the tax amount is zero.

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Can an error in a filed declaration be corrected?

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Yes. A corrective declaration (labojums) is submitted through EDS, replacing the previous one for the same period. Corrections may be filed within 3 years.

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What VAT rate applies in Latvia in 2026?

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Standard rate 21%. Reduced rates 12% and 5%. A VAT reduction on certain food products is expected from mid 2026.

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How much does an accountant charge for VAT declaration filing?

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Monthly PVN declaration preparation on outsourcing costs 30 to 80 euros per period. Within full accounting service, VAT reporting is usually included in the monthly rate of 200 to 400 euros.

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How Lex&Finance Specialists Can Help With VAT Declaration Filing

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Lex&Finance provides accounting services in Riga and Latvia, including complete VAT reporting support. Our licensed accountants will prepare and file monthly or quarterly PVN declarations, verify correct rate application, process intra-EU transactions and reverse charge, and assist with corrections and budget refunds. Contact us for a free initial consultation through our website lexfinance.lv or by phone.