VAT Trading

Which VAT scheme will suit you the best?

IBCC can recommend a VAT trading route that will deliver your strategic objectives and minimise your tax liabilities.

0% VAT

The Latvian limited liability company (SIA) has many advantageous applications for the international business. One of them is using the company as a European trading vehicle at relatively low cost. In addition, VAT registration is straightforward and the corporate tax is only 15%.

TYPICAL TRADING STRUCTURE:

  1. Client in foreign country orders goods from a Latvian intermediary company, who sources the goods from the supplier directly to the client. Such movement of goods is called triangulation. 
  2. If the Supplier’s EU company is registered with a VAT number, it can zero rate its invoice only if the Intermediary company has a valid EU VAT number.
  3. If the Intermediary company does not have an EU VAT number, the Supplier must charge the Intermediary company full VAT at the local rate.
  4. If the Latvian company sources out goods to the EU client with VAT, it also applies 0% VAT to its invoices.
  5. In case of export of goods, no VAT is applied.

Read more about VAT registration procedure.

  Read more


Ready to start?                   
Ask for our shelf company list here.                                                                                             

Ready to start?                   

Ask for our shelf company list here.                                                                                             

Ask for proposal