VAT in Latvia

The main VAT rate in Latvia is 21%. The company must be registered for VAT if the total volume of goods and / or services is 40 000 euros or more for the period of 12 months. Some industries operate at a reduced rate: a 12% rate is applied for route transportation, books, pharmaceutical companies, periodicals, hospitality, baby food, and 0% for education, healthcare, export, financial services and insurance.