The VAT is paid by legal entities and natural persons. The reduced tax rate is 12% and is paid for certain medications, some parts of books, periodicals, inland public transport services, and some other goods and services.
The value added tax 22%
For the foreigners to avoid the double taxation the amount of Latvian Income Tax can be reduced to that paid in the corresponding foreign country. Note! The according tax payment should be certified by a foreign tax-collection institution! Learn more about tax convention here and about the procedures of applying for tax relief here. Download the list of the countries with which Latvia has signed the tax convention here.