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Latvia Tax Information

21% PVN

PVN (VAT) is 21% standard, 12% for gas/heat, 5% reduced. Registration above €40,000. Source: State Revenue Service Latvia.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Latvia

Registration number
PVN number if registered
Client details
Invoice number
PVN breakdown
Total in EUR

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

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Payment Methods in Latvia

Bank TransferCredit CardPayPalCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Latvia?

Latvia has 21% PVN. PVN (VAT) is 21% standard, 12% for gas/heat, 5% reduced. Registration above €40,000. Source: State Revenue Service Latvia.

What payment methods are common for contractors in Latvia?

Common payment methods in Latvia include: Bank Transfer, Credit Card, PayPal, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Latvia?

Your invoice should include: Registration number, PVN number if registered, Client details, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What PVN rates apply in Latvia?

Latvia has 21% standard VAT, 12% for gas and heating, 5% for medical products and books. Zero-rated exports.