Latvian VAT (PVN) Guide & Calculator
Calculate Latvian VAT with our straightforward tool. The Latvian name for VAT is Pievienotās vērtības nodoklis (PVN). This calculator helps you determine gross or net amounts for any of Latvia's current VAT rates.
Current VAT Rates in Latvia
Latvia applies three main VAT rates:
- Standard Rate (21%): This is the default rate for most goods and services.
- Reduced Rate (12%): This rate applies to passenger transport, medicines, medical equipment, and hotel accommodation.
- Second Reduced Rate (5%): A lower rate is applied to certain basic foodstuffs, such as fresh fruit and vegetables, as well as books and press publications.
History of VAT in Latvia
Latvia introduced its Value Added Tax system in May 1995 with a standard rate of 18%. This was a key part of the country's economic reforms after regaining independence. The rates have been adjusted over the years, especially around the time of the 2008 financial crisis and in preparation for adopting the Euro, to manage the national economy.
| Period | Standard Rate | Reduced Rate(s) |
|---|---|---|
| From 01/01/2013 | 21% | 12% |
| From 01/07/2011 | 22% | 12% |
| From 01/01/2009 | 21% | 10% |
| From 01/05/2004 | 18% | 5% |
| From 01/01/2003 | 18% | 9% |
| From 01/05/1995 | 18% | N/A |