Latvia VAT

• The standard rate of VAT in Latvia is 21%%.
  There are reduced rates of 12% and 0%.
• VAT is charged on assets and services provided in Latvia as well as on imports into Latvia.
• Exports from Latvia are not subject to value added tax.
• Income from financial services, such as insurance and banking services are exempt from VAT and legal advice, subject to the conditions in law, is exempt from VAT.
• Any business with a turnover in excess of LVL 35,000 in the previous 12 months is obligated to register with the VAT authorities.
• VAT at the rate of 12% is payable on medications, veterinary medications, special equipment for children and communications services.
• The following operations are exempt from VAT, subject to the definitions:
  - Educational services.
  - Medical services.
  - Cultural services.
  - Lotteries and gambling.
  - Financial services provided by banks and insurance companies.
  - Gifts and donations for humanitarian aims.