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country-icon Lettonie

10.20.23

VAT registration threshold increase

A VAT registration threshold increase offers a whole host of benefits for taxpayers, who may find themselves relieved of multiple VAT-related obligations.

However, the decision to instigate a VAT registration threshold often is influenced by external factors such as inflation, which has a strong correlation with the fiscal methodologies that countries deploy.

Due to escalating inflation in the country, Latvia’s government has now approved draft measures to raise the VAT registration threshold from 40,000 to 50,000 Euros. Subject to approval by the Latvian Parliament, the Saeima, the measure is expected to take effect from 1 January 2024.

The measure is expected to reduce inflation, specifically with a view to assisting small businesses, which are often disproportionately impacted by rising inflation.

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