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openaccountants/skills/latvia-vat-return.md
latvia-vat-return.md251 lines9.3 KB
v20EU
1---
2name: latvia-vat-return
3description: Use this skill whenever asked to prepare, review, or classify transactions for a Latvian VAT return (PVN deklaracija / PVN 1 form) for any client. Trigger on phrases like "prepare VAT return", "Latvian VAT", "PVN return", "PVN1", "pievienotas vertibas nodoklis", or any request involving Latvia VAT filing. This skill covers standard PVN-registered businesses only. MUST be loaded alongside BOTH vat-workflow-base and eu-vat-directive companion skills. ALWAYS read this skill before touching any Latvia VAT work.
4version: 2.0
5---
6 
7# Latvia PVN Return Skill (PVN 1) v2.0
8 
9## Section 1 — Quick reference
10 
11**Read this whole section before classifying anything. The workflow runbook is in `vat-workflow-base` Section 1. The EU directive content is in `eu-vat-directive`.**
12 
13| Field | Value |
14|---|---|
15| Country | Latvia (Latvija) |
16| Standard rate | 21% |
17| Reduced rates | 12% (food, pharmaceuticals, hotel accommodation, domestic heating, passenger transport, books/periodicals), 5% (locally produced fruits/vegetables — seasonal) |
18| Zero rate | Exports, intra-EU B2B supplies |
19| Return form | PVN deklaracija (PVN 1) |
20| Filing portal | https://eds.vid.gov.lv (EDS) |
21| Authority | Valsts ienemumu dienests (VID) |
22| Currency | EUR |
23| Filing frequency | Monthly (intra-EU or turnover > EUR 50,000), quarterly (EUR 14,228-50,000), bi-annual (< EUR 14,228) |
24| Deadline | 20th of month following period |
25| Companion skill (workflow) | vat-workflow-base v0.1+ |
26| Companion skill (EU directive) | eu-vat-directive v0.1+ |
27| Contributor | Open Accountants Skills Registry |
28| Validated by | Pending — requires validation by licensed Latvian accountant |
29| Validation date | Pending |
30 
31**Conservative defaults:**
32 
33| Ambiguity | Default |
34|---|---|
35| Unknown rate on a sale | 21% |
36| Unknown PVN status of a purchase | Not deductible |
37| Unknown counterparty country | Domestic Latvia |
38| Unknown B2B vs B2C for EU customer | B2C, charge 21% |
39| Unknown business-use proportion | 0% recovery |
40| Unknown blocked-input status | Blocked |
41 
42**Red flag thresholds:**
43 
44| Threshold | Value |
45|---|---|
46| HIGH single-transaction size | EUR 3,000 |
47| HIGH tax-delta on a single conservative default | EUR 200 |
48| MEDIUM counterparty concentration | >40% |
49| MEDIUM conservative-default count | >4 |
50| LOW absolute net PVN position | EUR 5,000 |
51 
52---
53 
54## Section 2 — Required inputs and refusal catalogue
55 
56### Required inputs
57 
58**Minimum viable** — bank statement for the period. Acceptable from: Swedbank Latvia, SEB banka, Citadele, Luminor, BlueOrange, or any other.
59 
60**Recommended** — sales/purchase invoices, VAT number (LV + 11 digits).
61 
62**Ideal** — complete invoice register, prior PVN 1.
63 
64### Latvia-specific refusal catalogue (supplements eu-vat-directive R-EU-1 through R-EU-12)
65 
66**R-LV-1 — Micro-enterprise tax regime.** *Trigger:* client is on micro-enterprise tax. *Message:* "Micro-enterprise taxpayers may have different PVN obligations. Flag for reviewer."
67 
68**R-LV-2 — Partial exemption.** *Trigger:* mixed taxable/exempt. *Message:* "Pro-rata required. Flag for reviewer."
69 
70**R-LV-3 — Timber/construction domestic reverse charge.** *Trigger:* timber or construction services. *Message:* "Domestic reverse charge applies for timber and construction. Specialist analysis required."
71 
72---
73 
74## Section 3 — Supplier pattern library
75 
76### 3.1 Latvian banks (fees exempt — exclude)
77| Pattern | Treatment | Notes |
78|---|---|---|
79| SWEDBANK, SEB, CITADELE, LUMINOR | EXCLUDE for fees | Financial service exempt |
80| PROCENTI, INTEREST | EXCLUDE | Interest exempt |
81 
82### 3.2 Government (exclude)
83| Pattern | Treatment | Notes |
84|---|---|---|
85| VID, VALSTS IENEMUMU DIENESTS | EXCLUDE | Tax payment |
86| VSAA | EXCLUDE | Social security |
87| UZNEMUMU REGISTRS | EXCLUDE | Company registration |
88 
89### 3.3 Utilities
90| Pattern | Treatment | Notes |
91|---|---|---|
92| LATVENERGO, SADALES TIKLS | Domestic 21% | Electricity |
93| LATVIJAS GAZE, ENERĢIJAS PUBLISKAIS TIRGOTĀJS | Domestic 21% | Gas/heating — check 12% for domestic heating |
94| LMT, TELE2, BITE | Domestic 21% | Telecoms |
95 
96### 3.4 SaaS — EU (reverse charge)
97| Pattern | Treatment | Notes |
98|---|---|---|
99| GOOGLE IRELAND, MICROSOFT IRELAND, ADOBE IRELAND | EU reverse charge | Intra-EU services |
100| SPOTIFY AB (SE), ATLASSIAN (NL) | EU reverse charge | Same |
101 
102### 3.5 SaaS — non-EU (reverse charge)
103| Pattern | Treatment | Notes |
104|---|---|---|
105| NOTION, ANTHROPIC, OPENAI, FIGMA, CANVA | Non-EU reverse charge | |
106| GITHUB (US) | Non-EU reverse charge | Check if billed by IE entity |
107 
108### 3.6 Food and entertainment (blocked)
109| Pattern | Treatment | Notes |
110|---|---|---|
111| RIMI, MAXIMA, LIDL, TOP, MEGO | Default BLOCK | Personal provisioning |
112| RESTORĀNS, KAFEJNĪCA | Default BLOCK | Entertainment — 60% cap on representation |
113 
114### 3.7 Insurance (exempt)
115| Pattern | Treatment | Notes |
116|---|---|---|
117| BALTA, BTA, IF APDROŠINĀŠANA | EXCLUDE | Insurance exempt |
118 
119### 3.8 Professional services
120| Pattern | Treatment | Notes |
121|---|---|---|
122| ZVĒRINĀTAIS REVIDENTS, AUDITORS | Domestic 21% | |
123| ADVOKĀTS, JURISTA BIROJS | Domestic 21% | |
124| NOTĀRS | Domestic 21% | |
125 
126### 3.9 Internal transfers
127| Pattern | Treatment | Notes |
128|---|---|---|
129| IEKŠĒJAIS PĀRSKAITĪJUMS | EXCLUDE | |
130| ALGA, DARBA SAMAKSA | EXCLUDE | Salary |
131 
132---
133 
134## Section 4 — Worked examples
135 
136### Example 1 — Non-EU SaaS reverse charge
137**Input:** `NOTION LABS INC ; DEBIT ; EUR 14.68`
138**Treatment:** Non-EU reverse charge. Output and input PVN at 21%. Net zero.
139 
140### Example 2 — EU service reverse charge (Google Ads)
141**Input:** `GOOGLE IRELAND LIMITED ; DEBIT ; EUR 850.00`
142**Treatment:** EU reverse charge. Intra-EU services. Output and input PVN at 21%.
143 
144### Example 3 — Entertainment (representation — 60% cap)
145**Input:** `RESTORĀNS VINCENTS ; DEBIT ; EUR 220`
146**Treatment:** Representation expenses have 60% PVN recovery cap in Latvia. Flag for reviewer. Conservative default: 0%.
147 
148### Example 4 — Capital goods
149**Input:** `DELL TECHNOLOGIES ; DEBIT ; EUR 1,595`
150**Treatment:** Capital goods. Input PVN at 21%.
151 
152### Example 5 — EU B2B service sale
153**Input:** `STUDIO KREBS GMBH (DE) ; CREDIT ; EUR 3,500`
154**Treatment:** B2B service to EU customer. Zero-rated. Verify DE USt-IdNr via VIES.
155 
156### Example 6 — Motor vehicle, partial block
157**Input:** `SIA AUTOCENTRS ; DEBIT ; car lease ; EUR 650`
158**Treatment:** Latvia limits PVN recovery on passenger vehicles. Conservative default: 0%. Flag for reviewer.
159 
160---
161 
162## Section 5 — Tier 1 classification rules (compressed)
163 
164### 5.1 Standard rate 21%
165Default. Most goods and services.
166 
167### 5.2 Reduced rate 12%
168Food products, pharmaceuticals, hotel accommodation, domestic heating, passenger transport, books/periodicals.
169 
170### 5.3 Reduced rate 5%
171Locally produced seasonal fruits and vegetables.
172 
173### 5.4 Zero rate
174Exports, intra-EU B2B supplies (goods and services).
175 
176### 5.5 Exempt without credit
177Financial services, insurance, medical, education, residential rental, postal universal service.
178 
179### 5.6 Reverse charge — EU services
180Standard EU reverse charge per eu-vat-directive.
181 
182### 5.7 Reverse charge — non-EU services
183Self-assess at 21%.
184 
185### 5.8 Domestic reverse charge
186Timber, scrap metal, construction services — domestic reverse charge.
187 
188### 5.9 Blocked input PVN
189Entertainment (above 60% representation cap), passenger vehicles (limited recovery), personal use.
190 
191---
192 
193## Section 6 — Tier 2 catalogue (compressed)
194 
195### 6.1 Vehicle costs
196*Default:* 0%. *Question:* "Confirm vehicle type and business-use proportion."
197 
198### 6.2 Representation expenses
199*Default:* 0%. *Question:* "60% cap applies for documented business representation. Confirm."
200 
201### 6.3 Timber/construction reverse charge
202*Default:* flag. *Question:* "Confirm if domestic reverse charge applies."
203 
204### 6.4 Mixed-use expenses
205*Default:* 0%. *Question:* "Business proportion?"
206 
207---
208 
209## Section 7 — Excel working paper template
210Standard layout. Column H accepts PVN 1 row codes.
211 
212---
213 
214## Section 8 — Bank statement reading guide
215**Format:** Swedbank/SEB CSV, DD.MM.YYYY, EUR. **Language:** Latvian or English.
216**Internal transfers:** "Iekšējais pārskaitījums". Exclude.
217 
218---
219 
220## Section 9 — Onboarding fallback
221 
222### 9.1 PVN number
223*Fallback:* "What is your PVN number? (LV + 11 digits)"
224 
225### 9.2 Filing frequency
226*Inference:* from turnover. *Fallback:* "Monthly, quarterly, or bi-annual?"
227 
228### 9.3 Credit brought forward
229Always ask.
230 
231---
232 
233## Section 10 — Reference material
234 
235### Sources
2361. Pievienotas vertibas nodokla likums (PVN likums) — Latvian VAT Act
2372. EU VAT Directive 2006/112/EC
2383. VID EDS portal — https://eds.vid.gov.lv
239 
240### Change log
241- **v2.0 (April 2026):** Full rewrite to 10-section architecture with companion skill references.
242- **v1.0-draft:** Initial skill.
243 
244---
245 
246## Disclaimer
247 
248This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
249 
250The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
251 

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About

Use this skill whenever asked to prepare, review, or classify transactions for a Latvian VAT return (PVN deklaracija / PVN 1 form) for any client. Trigger on phrases like "prepare VAT return", "Latvian VAT", "PVN return", "PVN1", "pievienotas vertibas nodoklis", or any request involving Latvia VAT filing. This skill covers standard PVN-registered businesses only. MUST be loaded alongside BOTH vat-workflow-base and eu-vat-directive companion skills. ALWAYS read this skill before touching any Latvia VAT work.

LVty-2025

LV skill: