Recommended VAT Code Mapping for Latvia Localization SuiteApp
Purpose
This guide helps NetSuite users implement and manage Latvian VAT compliance using local tax codes mapped to the official Latvian VAT Return (PVN1), EC Sales List (PVN2), and supporting reports (PVN1I, PVN1II, PVN1III), in line with the DokPVNv7 XML specification used for EDS submissions.
Overview of VAT Reporting in Latvia
Latvian VAT reporting includes the following components:
PVN1: Monthly or quarterly VAT Return
PVN1I: EU acquisitions, reverse charge transactions, and notional VAT
PVN1II: Intra-EU supplies of goods and services
PVN1III: Domestic reverse charge and self-supply
PVN2: EC Sales List (goods only)
PVN6III: Customs export details (for exported goods) ← not supported
VAT rates applicable in Latvia:
21%: Standard rate
12%: Reduced rate (e.g., medications, heating)
5%: Super-reduced rate (e.g., books, certain foods)
0%: Exports, intra-EU supplies, SEZ
Setting Up NetSuite Tax Codes
Each transaction must use the correct tax code to ensure accurate VAT reporting. Below are recommended tax codes for common scenarios:
Tax Code | Description | Rate | Notional Rate | Type | Appears On | Return Row | Supplemental | Notes |
|---|---|---|---|---|---|---|---|---|
LV21_SALES | Standard domestic sale | 21% |
| Output VAT | Sales | R41 | - | Used on invoices, cash sales |
LV12_SALES | Reduced rate domestic sale | 12% |
| Output VAT | Sales | R42 | - |
|
LV5_SALES | Super-reduced rate domestic sale | 5% |
| Output VAT | Sales | R421 | - |
|
LV0_EU_SALES | Intra-EU goods supply | 0% |
| Output VAT | Sales | R45 | PVN1II, PVN2 | Must include customer VAT number |
LV0_EU_VEHICLE | Intra-EU new transport supply | 0% |
| Output VAT | Sales | R47 | PVN1II | Vehicles only |
LV0_EXPORT_GOODS | Export outside EU | 0% |
| Output VAT | Sales | R481 | PVN6III | Customs proof required |
LV0_EXPORT_SERVICES | Exported B2B services | 0% |
| Output VAT | Sales | R48 | - | Outside EU |
LV0_SEZ | Free Port or SEZ sales | 0% |
| Output VAT | Sales | R44 | PVN1III | Requires SEZ status |
LV_EXEMPT | Exempt transactions | 0% |
| Non-taxable | Sales | R49 | - |
|
LV21_EU_GOODS | EU acquisition of goods |
| 21% | Input & Output VAT | Purchase | R50, R55 | PVN1I | Reverse charge mechanism |
LV12_EU_GOODS | EU acquisition (12%) |
| 12% | Input & Output VAT | Purchase | R51, R56 | PVN1I |
|
LV5_EU_GOODS | EU acquisition (5%) |
| 5% | Input & Output VAT | Purchase | R511, R561 | PVN1I |
|
LV21_EU_SERVICES | EU services under RC |
| 21% | Input & Output VAT | Purchase | R64 | PVN1I | B2B only |
LV21_RC_SERVICE | Domestic reverse charge (services) |
| 21% | Input & Output VAT | Purchase | R54 | PVN1I | Construction, etc. |
LV21_RC_INLAND | Domestic reverse charge (goods) |
| 21% | Input & Output VAT | Purchase | R62 | PVN1III | Use for R-codes (R1-R9) |
LV21_IMPORT | VAT on imports | 21% |
| Input VAT | Purchase | R61 | - | Based on customs declarations |
LV21_NOTIONAL | Notional/self-supply VAT |
| 21% | Input & Output VAT | Purchase | R65 | PVN1III | Internal use, self-consumption |
LV_NONDEDUCT | Non-deductible VAT | 0% |
| Input VAT | Purchase | R66 | - | E.g. entertainment, travel |
LV_ADJUSTMENT | Adjustment of previous period VAT | - |
| Adjustment | Journal | R67 | - | Manual correction |
PVN1 VAT Return Table with Supplemental Report Mapping
VAT Return Row | Description | VAT Rate | VAT Type | Appears On | Supplemental Report Match | Applicable Tax Code | Notes |
|---|---|---|---|---|---|---|---|
R41 | Domestic sales – standard rate | 21% | Output VAT | Sales | — | LV21_SALES | Standard domestic sale |
R42 | Domestic sales – reduced rate | 12% | Output VAT | Sales | — | LV12_SALES | Reduced-rate goods |
R421 | Domestic sales – 5% rate | 5% | Output VAT | Sales | — | LV5_SALES | For specific goods |
R43 | Total 0% sales (summary of 44–48, 481) | 0% | Output VAT | Sales | — | — | Auto-calculated |
R44 | Sales in free ports/SEZ | 0% | Output VAT | Sales | PVN1III | LV0_SEZ | SEZ status required |
R45 | Intra-EU supply of goods | 0% | Output VAT | Sales | PVN1II, PVN2 | LV0_EU_SALES | EC sales declaration |
R451 | Special intra-EU goods (Art. 42.16) | 0% | Output VAT | Sales | PVN1II | LV0_EU_SPECIAL | Article-based classification |
R47 | New transport to EU | 0% | Output VAT | Sales | PVN1II | LV0_EU_VEHICLE | Intra-EU vehicles |
R48 | Exported services | 0% | Output VAT | Sales | — | LV0_EXPORT_SERVICES | B2B outside EU |
R481 | Export of goods outside EU | 0% | Output VAT | Sales | PVN6III | LV0_EXPORT_GOODS | Customs documentation |
R49 | Exempt/non-taxable transactions | 0% | Non-taxable | Sales | — | LV_EXEMPT | Financial, education, etc. |
R50, R55 | EU acquisitions (21%) | 21% RC | Input & Output VAT | Purchase | PVN1I | LV21_EU_GOODS | Reverse charge |
R51, R56 | EU acquisitions (12%) | 12% RC | Input & Output VAT | Purchase | PVN1I | LV12_EU_GOODS | Reverse charge |
R511, R561 | EU acquisitions (5%) | 5% RC | Input & Output VAT | Purchase | PVN1I | LV5_EU_GOODS | Reverse charge |
R54 | Domestic RC services | 21% (notional) | Input & Output VAT | Purchase | PVN1I | LV21_RC_SERVICE | E.g. construction |