VAT on Accommodation in Latvia: the 12% Reduced Rate

Latvia's standard VAT rate is 21%. Accommodation services in tourist accommodation sites qualify for the 12% reduced rate (State Revenue Service and Ministry of Finance rate tables, 2026).

What gets 12% and what gets 21%

• 12%: accommodation services in tourist accommodation sites.
• Check separately: breakfast, minibar, parking, spa, tours, cleaning fees. Whether they are part of the accommodation service or separate supplies decides the rate. Ask VID or a tax adviser.
• Not VAT-registered? Below the registration threshold no VAT is charged. Check the current threshold on vid.gov.lv.

Invoice checklist

1. Supplier name, registration and VAT number
2. Guest/company details if a business invoice is requested
3. Dates of stay and number of nights
4. Net amount, VAT rate and VAT amount per line
5. Total amount

Pricing tip

Platforms show prices including taxes to EU consumers, so set your rates with VAT already included and check the platform's tax settings.

Official sources

• VID: VAT rates (LV)
• Ministry of Finance: tax rates
• VID: Value Added Tax (EN)

Last reviewed 29 October 2026. This guide is general information, not legal or tax advice. Check the linked official sources for your case.