Latvia’s Cabinet has approved draft VAT in the Digital Age legislation
This will implement first stages of the EU’s ViDA reforms, covering distance sales, OSS expansion and call-off stock arrangements
On 6 November 2026, Latvia’s Cabinet approved amendments to the VAT Law introducing elements of the EU VAT in the Digital Age (ViDA) reforms.
The proposals primarily concern the Single VAT Registration (SVR) pillar, which aims to reduce the need for businesses to maintain multiple VAT registrations across the EU.
Latvia’s proposed ViDA changes
The principal amendments include:
- Distance sales: Clarifying that only qualifying distance sales dispatched from Latvia count towards the €10,000 EU distance-selling threshold calculation.
- OSS expansion: Extending the Union One-Stop Shop to certain cross-border supplies of gas, electricity, heating and cooling from 1 January 2027.
- Call-off stock: Ending access to the existing simplification for new arrangements from 1 July 2028, with transitional arrangements expiring on 30 June 2029.
- Own-goods transfers: Preparing for a new special VAT scheme from 1 July 2028, allowing businesses to report qualifying cross-border Transfer of their Own Goods through a single registration.
The changes align Latvian VAT legislation with the phased implementation of Council Directive (EU) 2025/516.
Further ViDA implementation to follow
These initial amendments do not cover the full ViDA programme.
Further legislation will be required to implement mandatory intra-EU B2B e-invoicing and Digital Reporting Requirements (DRR) from 1 July 2030, together with the reforms affecting digital platforms between 2028-30.
The draft VAT amendments will now proceed through Latvia’s legislative process before becoming law.
