The following VAT rates apply in Latvia:
| Description of goods |
VAT (%) |
| The standard rate on supplies of goods and services, commodity imports, services rendered by non-residents and treated as supplied in Latvia, and intra-Community acquisitions of goods. |
21 |
| A reduced rate on listed medicaments, medical devices, specialised baby food, domestic public transport services, household heating charges, firewood and wooden heating material for households, textbooks, original literature publications, accommodation services, newspapers, and other periodicals, except electronically supplied media information. |
12 |
| A 5% VAT rate applies to supplies of foodstuffs that are fresh fruits, berries, and vegetables that have been washed, peeled, shelled, cut, and prepacked, but not thermally or otherwise treated (i.e. frozen, salted, or dried). The reduced rate of 5% is to operate from 1 January 2018 to 31 December 2023. |
5 |
| Exemption with credit on intra-Community supplies of goods to taxable persons registered for VAT in other member states. |
0 |
| Exemption with credit on commodity exports and supplier goods not released for free circulation in the European Union, supplies of goods and services to diplomats, and supplies of goods and services financed by foreign aid. |
0 |
A number of services are exempt, including education, financial, medical, and insurance services; nursery fees; and the sale of used real estate, including land (except for building land, which is taxable).
