openaccountants Latvia PVN Return Skill (PVN 1) v2.0
General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Section 1 — Quick reference
Read this whole section before classifying anything. The workflow runbook is in vat-workflow-base Section 1. The EU directive content is in eu-vat-directive.
| Field | Value |
|---|---|
| Country | Latvia (Latvija) |
| Standard rate | 21% |
| Reduced rates | 12% (food, pharmaceuticals, hotel accommodation, domestic heating, passenger transport, books/periodicals), 5% (locally produced fruits/vegetables — seasonal) |
| Zero rate | Exports, intra-EU B2B supplies |
| Return form | PVN deklaracija (PVN 1) |
| Filing portal | https://eds.vid.gov.lv (EDS) |
| Authority | Valsts ienemumu dienests (VID) |
| Currency | EUR |
| Filing frequency | Monthly (intra-EU or turnover > EUR 50,000), quarterly (EUR 14,228-50,000), bi-annual (< EUR 14,228) |
| Deadline | 20th of month following period |
| Companion skill (workflow) | vat-workflow-base v0.1+ |
| Companion skill (EU directive) | eu-vat-directive v0.1+ |
| Contributor | Open Accountants Skills Registry |
| Validated by | Pending — requires validation by licensed Latvian accountant |
| Validation date | Pending |
Conservative defaults:
| Ambiguity | Default |
|---|---|
| Unknown rate on a sale | 21% |
| Unknown PVN status of a purchase | Not deductible |
| Unknown counterparty country | Domestic Latvia |
| Unknown B2B vs B2C for EU customer | B2C, charge 21% |
| Unknown business-use proportion | 0% recovery |
| Unknown blocked-input status | Blocked |
Red flag thresholds:
| Threshold | Value |
|---|---|
| HIGH single-transaction size | EUR 3,000 |
| HIGH tax-delta on a single conservative default | EUR 200 |
| MEDIUM counterparty concentration | >40% |
| MEDIUM conservative-default count | >4 |
| LOW absolute net PVN position | EUR 5,000 |
Section 2 — Required inputs and refusal catalogue
Required inputs
Minimum viable — bank statement for the period. Acceptable from: Swedbank Latvia, SEB banka, Citadele, Luminor, BlueOrange, or any other.
Recommended — sales/purchase invoices, VAT number (LV + 11 digits).
Ideal — complete invoice register, prior PVN 1.
Latvia-specific refusal catalogue (supplements eu-vat-directive R-EU-1 through R-EU-12)
R-LV-1 — Micro-enterprise tax regime. Trigger: client is on micro-enterprise tax. Message: "Micro-enterprise taxpayers may have different PVN obligations. Flag for reviewer."
R-LV-2 — Partial exemption. Trigger: mixed taxable/exempt. Message: "Pro-rata required. Flag for reviewer."
R-LV-3 — Timber/construction domestic reverse charge. Trigger: timber or construction services. Message: "Domestic reverse charge applies for timber and construction. Specialist analysis required."
Section 3 — Supplier pattern library
3.1 Latvian banks (fees exempt — exclude)
| Pattern | Treatment | Notes |
|---|---|---|
| SWEDBANK, SEB, CITADELE, LUMINOR | EXCLUDE for fees | Financial service exempt |
| PROCENTI, INTEREST | EXCLUDE | Interest exempt |
3.2 Government (exclude)
| Pattern | Treatment | Notes |
|---|---|---|
| VID, VALSTS IENEMUMU DIENESTS | EXCLUDE | Tax payment |
| VSAA | EXCLUDE | Social security |
| UZNEMUMU REGISTRS | EXCLUDE | Company registration |
3.3 Utilities
| Pattern | Treatment | Notes |
|---|---|---|
| LATVENERGO, SADALES TIKLS | Domestic 21% | Electricity |
| LATVIJAS GAZE, ENERĢIJAS PUBLISKAIS TIRGOTĀJS | Domestic 21% | Gas/heating — check 12% for domestic heating |
| LMT, TELE2, BITE | Domestic 21% | Telecoms |
3.4 SaaS — EU (reverse charge)
| Pattern | Treatment | Notes |
|---|---|---|
| GOOGLE IRELAND, MICROSOFT IRELAND, ADOBE IRELAND | EU reverse charge | Intra-EU services |
| SPOTIFY AB (SE), ATLASSIAN (NL) | EU reverse charge | Same |
3.5 SaaS — non-EU (reverse charge)
| Pattern | Treatment | Notes |
|---|---|---|
| NOTION, ANTHROPIC, OPENAI, FIGMA, CANVA | Non-EU reverse charge | |
| GITHUB (US) | Non-EU reverse charge | Check if billed by IE entity |
3.6 Food and entertainment (blocked)
| Pattern | Treatment | Notes |
|---|---|---|
| RIMI, MAXIMA, LIDL, TOP, MEGO | Default BLOCK | Personal provisioning |
| RESTORĀNS, KAFEJNĪCA | Default BLOCK | Entertainment — 60% cap on representation |
3.7 Insurance (exempt)
| Pattern | Treatment | Notes |
|---|---|---|
| BALTA, BTA, IF APDROŠINĀŠANA | EXCLUDE | Insurance exempt |
3.8 Professional services
| Pattern | Treatment | Notes |
|---|---|---|
| ZVĒRINĀTAIS REVIDENTS, AUDITORS | Domestic 21% | |
| ADVOKĀTS, JURISTA BIROJS | Domestic 21% | |
| NOTĀRS | Domestic 21% |
3.9 Internal transfers
| Pattern | Treatment | Notes |
|---|---|---|
| IEKŠĒJAIS PĀRSKAITĪJUMS | EXCLUDE | |
| ALGA, DARBA SAMAKSA | EXCLUDE | Salary |
Section 4 — Worked examples
Example 1 — Non-EU SaaS reverse charge
Input: NOTION LABS INC ; DEBIT ; EUR 14.68
Treatment: Non-EU reverse charge. Output and input PVN at 21%. Net zero.
Example 2 — EU service reverse charge (Google Ads)
Input: GOOGLE IRELAND LIMITED ; DEBIT ; EUR 850.00
Treatment: EU reverse charge. Intra-EU services. Output and input PVN at 21%.
Example 3 — Entertainment (representation — 60% cap)
Input: RESTORĀNS VINCENTS ; DEBIT ; EUR 220
Treatment: Representation expenses have 60% PVN recovery cap in Latvia. Flag for reviewer. Conservative default: 0%.
Example 4 — Capital goods
Input: DELL TECHNOLOGIES ; DEBIT ; EUR 1,595
Treatment: Capital goods. Input PVN at 21%.
Example 5 — EU B2B service sale
Input: STUDIO KREBS GMBH (DE) ; CREDIT ; EUR 3,500
Treatment: B2B service to EU customer. Zero-rated. Verify DE USt-IdNr via VIES.
Example 6 — Motor vehicle, partial block
Input: SIA AUTOCENTRS ; DEBIT ; car lease ; EUR 650
Treatment: Latvia limits PVN recovery on passenger vehicles. Conservative default: 0%. Flag for reviewer.
Section 5 — Tier 1 classification rules (compressed)
5.1 Standard rate 21%
Default. Most goods and services.
5.2 Reduced rate 12%
Food products, pharmaceuticals, hotel accommodation, domestic heating, passenger transport, books/periodicals.
5.3 Reduced rate 5%
Locally produced seasonal fruits and vegetables.
5.4 Zero rate
Exports, intra-EU B2B supplies (goods and services).
5.5 Exempt without credit
Financial services, insurance, medical, education, residential rental, postal universal service.
5.6 Reverse charge — EU services
Standard EU reverse charge per eu-vat-directive.
5.7 Reverse charge — non-EU services
Self-assess at 21%.
5.8 Domestic reverse charge
Timber, scrap metal, construction services — domestic reverse charge.
5.9 Blocked input PVN
Entertainment (above 60% representation cap), passenger vehicles (limited recovery), personal use.
Section 6 — Tier 2 catalogue (compressed)
6.1 Vehicle costs
Default: 0%. Question: "Confirm vehicle type and business-use proportion."
6.2 Representation expenses
Default: 0%. Question: "60% cap applies for documented business representation. Confirm."
6.3 Timber/construction reverse charge
Default: flag. Question: "Confirm if domestic reverse charge applies."
6.4 Mixed-use expenses
Default: 0%. Question: "Business proportion?"
Section 7 — Excel working paper template
Standard layout. Column H accepts PVN 1 row codes.
Section 8 — Bank statement reading guide
Format: Swedbank/SEB CSV, DD.MM.YYYY, EUR. Language: Latvian or English. Internal transfers: "Iekšējais pārskaitījums". Exclude.
Section 9 — Onboarding fallback
9.1 PVN number
Fallback: "What is your PVN number? (LV + 11 digits)"
9.2 Filing frequency
Inference: from turnover. Fallback: "Monthly, quarterly, or bi-annual?"
9.3 Credit brought forward
Always ask.
Section 10 — Reference material
Sources
- Pievienotas vertibas nodokla likums (PVN likums) — Latvian VAT Act
- EU VAT Directive 2006/112/EC
- VID EDS portal — https://eds.vid.gov.lv
Change log
- v2.0 (April 2026): Full rewrite to 10-section architecture with companion skill references.
- v1.0-draft: Initial skill.
Disclaimer
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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