The main changes are related to PIT and there was already a blog about it. But everything else concerning tax amendments iz Latvia as of 2025 was not yet collected in one place. I will try to correct this omission (sorry, but it will be long).

There was a separate blog about the draft personal income tax changes – as predicted, it has all materialized in the law.

Pensions

The dogs barked, but the caravan moved on. From January 1, 2025 to December 31, 2028, 1% of pension contribution rates has been transferred from the 2nd pension pillar to the state unfunded pension scheme (pension pillar 1).

Minimum wage

The amendments provide that in 2025 the minimum monthly wage within normal working hours is EUR 740.

VSAOI

The amendments to the law on the social security contributions provide that the special tax regime of the transitional period for royalty recipients has been extended until December 31, 2027. The maximum amount of the VSAOI and the voluntary contribution object has been increased to EUR 105,300 for the next three years (from 2025 to 2027).

VAT

Relatively extensive amendments have been adopted related to VAT, which you can read more about in the September Tax Bulletin. In short, the amendments to the VAT law address the following issues:

  • to exclude the current deadline set in the VAT Law for applying the reduced VAT rate of 12% to food supplies (fresh fruits, berries and vegetables, etc.), thus turning the temporary norm into an indefinite one;
  • on the right not to register in the VAT register (EUR 50k threshold) – with the amendments, unfortunately, no solution was found for those who work with Booking, etc., which I wrote about;
  • place of provision of services for virtual cultural and sports events;
  • place of provision of services for electronically provided services;
  • application of VAT exemption for certain services;
  • acquisition of goods in the EU territory in relation to supplies to the armed forces;
  • 0% VAT for diplomats and consular officers;
  • 0% VAT for the export of goods for humanitarian aid and charity purposes;
  • the conditions that must be met in order to register in the SRS VAT register as a fiscal representative have been added to the VAT Law;
  • the conditions for obtaining a permit for the application of a special VAT regime for import of goods have been supplemented;
  • a special VAT regime for used goods, works of art, etc. (including in the trade of used cars);
  • luxury cars;
  • the right of suppliers from other EU Member States and third countries not to register in the VAT register.

Read the full story by tax expert Jānis Taukačs here.