1. What are the deadlines for submitting VAT refund claims in Latvia?

A VAT refund application in Latvia should be submitted before 30 September of the year following the year in which the VAT in Latvia was incurred, for a VAT refund in Latvia under both the 8th Directive and 13th Directive. VAT refunds in Latvia can be made quarterly and annually, however the claiming periods for Latvia VAT refunds are not allowed to overlap with one another.

2. Are there any minimum spend thresholds for VAT refunds in Latvia?

Quarterly Latvia VAT refunds under both the 8th Directive and 13th Directive should exceed EUR 400.00. Annual Latvia VAT refunds under both the 8th Directive and 13th Directive should exceed EUR 50.00.

3. What are the different VAT rates applicable in Latvia?

In addition to the standard VAT rate in Latvia of 21%, there are also reduced VAT rate in Latvia of 12% and 5% which are charged on certain items such as foodstuff, pharmaceutical and medical equipment and passenger transport. Expenses that are generally claimable in a VAT refund in Latvia are charged VAT at the standard VAT rate in Latvia, except for Taxis and public transport fares as well as Accommodation which is charged at the reduced VAT rate in Latvia of 12%.

4. How does a business know if it qualifies for a VAT refund in Latvia?

An entity will be entitled to claim a VAT refund in Latvia if it does not have an establishment in Latvia or a VAT registration in Latvia (meaning that it should not have a Latvian VAT number) and should not be carrying on any taxable activities that could require it to obtain a VAT registration in Latvia. Additionally, the claimant should be established in a country that has entered into a reciprocal agreement with Latvia regarding VAT refunds.

5. Are there any exemptions or special rules for VAT in Latvia?

Generally all business expenses are claimable in a VAT refund in Latvia, except for entertainment expenses which are non-claimable for VAT in Latvia. It should also be noted that only 50% of transport expenses (fuel, hire of means of transport, public transport and tolls) are claimable as part of a VAT refund in Latvia, and only 40% of food, drink and restaurant services are claimable as part of a VAT refund in Latvia.

6. Which documents should be included in a VAT refund application in Latvia?

For Latvia VAT refunds under the 8th Directive, the submission will be made electronically via the portal managed by the entity’s Member State of Establishment, and only documents for your appointed agent (if applicable – e.g., if you have appointed VAT IT as your agent), along with copies of the applicable invoices need to be submitted. For Latvia VAT refunds under the 13th Directive, the submission will be made in hard copy to the Latvia VAT Authority and should include agent-related documents (if applicable) as well as valid tax certificates, completed claim forms, original invoices and proof of payment of these invoices.