Foreign services 2026: VAT on subscriptions and ads from abroad

Check the invoice

• Latvian VAT at 21% — the supplier already pays the tax. Nothing to do.
• No VAT, a 'reverse charge' note, or another country's VAT — the VAT is yours to pay. Another country's VAT does not replace it.

Free use creates no obligation.

The special registration for small businesses

Since 1 July 2025 you can register under the special scheme (VAT Law Section 139.²) if your turnover in Latvia this year and last year stayed within €50,000 and you do not provide services to VAT payers in other EU countries. Apply in EDS before the first purchase.

• Your own sales stay free of VAT; no VAT return is filed.
• For each month with such a purchase, file a VAT payment notice in EDS by the 20th of the next month and pay by the 23rd.
• No input VAT can be deducted. The number is used only for these purchases and given to the foreign suppliers.
• MUN status is kept.

Example: a €20 monthly subscription without VAT. October's VAT is €4.20 (21%): the notice by 20 November, payment by 23 November.

If you have not registered so far

Registration cannot be backdated. Once registered, file a separate VAT payment notice for each earlier month with such purchases (reason 'Citi gadījumi') and pay the tax. The SRS charges late-payment interest on overdue tax.