What the VAT return is
The VAT return is a report on value added tax that a VAT-registered business calculates on the invoices it issued and received during the reporting period. It shows both the VAT charged on sales and the deductible input VAT on purchases; the difference is the amount payable to the budget or recoverable.
VAT rates in Latvia
| Rate | When it applies |
|---|---|
| Standard 21% | Most goods and services |
| Reduced 12% | Certain groups of goods (e.g. medicines) |
| Reduced 5% | Certain groups of goods |
| 0% | Exports and certain transactions |
Check the exact rates and the conditions for applying them in VID publications, as they may change.
Filing deadline
The VAT return is usually due by the 20th of the following month, and the tax is payable by the 23rd of the following month. If the last day of a deadline falls on a day off, it is usually moved to the next working day. VID sets the exact period, monthly or quarterly, depending on turnover.
Most common mistakes
- The wrong VAT rate on individual transactions.
- Deductible input VAT on purchases left out.
- A mismatch between the return and the accounting records.
- A missed filing deadline, which leads to a fine.
How the software prepares the VAT return
The software calculates VAT from your invoices and the transactions you enter and fills in the return fields. When the data is consistent, the document gets the status "Ready for submission". Read more about data preparation for EDS in a separate article. If you have employees, the article on the employer's report in EDS will also help.
Filing in VID EDS
Frequently asked questions
How often must the VAT return be filed?
It depends on the company's turnover and registration, usually once a month or once a quarter. VID sets the exact period, and you can see it in your EDS profile.
Does the software file the VAT return in EDS for me?
No. The software prepares the VAT return up to the status "Ready for submission". You file it in the VID EDS portal yourself, manually.
What if I find a mistake after filing?
You correct it by filing an amended return for that period. The software lets you prepare the correction and keeps the original version in the history.