# PVN Kalkulators 2026 — Latvia VAT calculator

Source page: https://valem.run/calculators/latvia/vat

Latvian VAT is 21% as the standard rate with reduced rates of 12% and 5%, and registration is required once transactions pass 50 000 EUR — though while the excess stays within 10%, up to 55 000 EUR, you may defer registering until the end of the year.

**Tax year:** 2026

## How it is calculated

Three rates, set by the VAT Act: 21% as the standard rate, 12% on medicines, heating and passenger transport among others, and 5% on certain books and publications.

The registration rule is where Latvia is genuinely unusual, and it explains why sources disagree about the figure. The threshold is 50 000 EUR. On top of it sits a 10% tolerance: while the excess is no more than 5 000 EUR — so total transactions up to 55 000 EUR — you have the right to defer registering until the end of the year. Above 55 000 EUR that right disappears.

So 50 000 and 55 000 are not rival figures, which is how they usually appear online. One is the threshold and the other is the top of its tolerance, and quoting either on its own loses the part that decides when you must act. Functionally this is the same two-tier shape Slovakia, Czechia and Slovenia use, expressed as a percentage rather than a second amount.

## Worked example

With Amount of 100, this model computes Vat Amount of 21.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `amount` | Amount | number |
| `direction` | Direction | string |
| `category` | What is being supplied | string |
| `annualTurnover` | Turnover this year | number |
| `reverseCharge` | B2B reverse charge applies | boolean |

## Sources

- [Pievienotas vertibas nodokla likums, 41. pants — nodokla likmes](https://likumi.lv/ta/id/253451-pievienotas-vertibas-nodokla-likums) (checked 2026-10-05)
- [VID metodiskais materials (02.01.2025) — registracijas slieksnis un 10 % pielaide](https://www.vid.gov.lv/lv/media/28251/download?attachment=) (checked 2026-10-05)

## What this page claims

The Valem engine reproduces this model's formula through 7 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/latvia/vat.json
- Compute by URL: https://valem.run/calculators/latvia/vat.json?amount=100
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `latvia/vat`)