The regulatory framework of the VAT Act in Latvia has been implemented in accordance with the Directive 2006/112/EC of European Council on 28 November 2006. It includes optional provision that allow Member States to introduce the reverse charge mechanism on relevant goods until 31 December 2018.

The VAT reverse charge mechanism implies that VAT on the supply of goods shall be paid by the consignee into the budget if the supplier of the goods and the consignee are registered in the Latvian VAT Register.

You can find more information about the new VAT procedure from our Latvian webpage.