Late VAT return in Latvia: what to know, what it can cost, and how to fix it

A late VAT return is rarely a single mistake. More often it’s the result of a weak month‑end routine: invoices arrive late, someone waits for ‘one last document’, or the draft return sits unapproved until the deadline passes. In Latvia, however, late filing can create several layers of consequences: administrative fines for late submission, late‑payment interest if VAT is payable, publication of non‑compliance after a certain delay, delayed VAT refunds, and (in serious cases) removal from the Latvian VAT register. This article focuses on the practical side: what the official rules say and what to do next.

Core deadlines: file by day 20, pay by day 23

For most taxpayers, the VAT return is submitted within 20 days after the end of the tax period. If VAT is payable, payment is due within 23 days after the end of the period. A VAT return is typically required even if there were no taxable transactions (a nil return).

Escalation thresholds: 15 days (publication) and 30 days (VAT register risk)

Latvian rules include two thresholds that change the practical risk profile. If the filing deadline is exceeded by more than 15 days, VID may publish information about the missing return on its website. If the return is not submitted within 30 days after the deadline, VID may decide to remove the company from the Latvian VAT register (case‑by‑case).

• Up to 15 days late: you are in breach, but the most disruptive consequences are usually avoidable if you file immediately.
• More than 15 days late: risk of public disclosure (company + missing return + due date).
• 30+ days after the deadline: risk of VAT register removal, which can disrupt invoicing and input VAT recovery.

Costs: late‑payment interest vs an administrative fine

Businesses often mix up two different mechanisms. Late‑payment interest applies if VAT was due but not paid on time; it is calculated per day on the unpaid amount. Separately, an administrative fine may apply for missing the filing deadline. In Latvia, fines are commonly expressed in penalty units (each unit has a statutory euro value).

VAT refunds and cashflow: why a ‘small delay’ can hurt

If your VAT position is refundable, late filing often delays the refund timeline. Even if there is no VAT to pay, a refund delay can create a working‑capital gap-especially for importers, fast‑growing companies, or businesses with large capital expenditure. If you expect a refund, prioritize timely submission and correct later through the official correction process.

What to do if you are already late: a practical EDS plan

When you miss the deadline, the best pattern is usually: submit first, pay if needed, then correct. Submitting quickly reduces the chance of moving into higher‑impact categories (publication, VAT register actions).

Fast 30-60 minute checklist

• Submit the VAT return for the late period in EDS as soon as possible.
• If VAT is payable, initiate payment immediately and keep proof of the payment order.
• Save a working pack: VAT sales/purchase ledger exports, key invoices, and a reconciliation summary.
• List items likely to change (missing invoices, import documents, credit notes) and schedule a correction task with a clear date.

Corrections: how long you can amend and what to document

VID guidance indicates that VAT returns (PVN 4) can be corrected multiple times within three years after the statutory payment date (typically day 23 after the period), as long as tax control/audit has not been initiated for that period. In practice, keep a simple correction log: what changed, why it changed, and which documents support the change.

Common root causes of late filings (and quick fixes)

Most late VAT returns come from a few repeatable patterns. Fixing them is usually cheaper than paying the compliance ‘tax’ every month.

Missing supplier invoices

Set an internal invoice cut‑off (for example, 3-5 business days after month‑end). File the VAT return based on available data, then correct if needed. Waiting for perfection is the fastest way to miss the deadline.

Cross-border invoices and reverse charge items

Include a dedicated check for platform purchases, foreign service invoices (ads, software, subscriptions), and other reverse‑charge items. These transactions are easy to miss because the VAT calculation sits with the buyer.

Prevention: a minimal monthly closing routine

A simple monthly routine reduces late returns dramatically:

• Reconcile VAT ledgers to the general ledger before drafting the return.
• Compare VAT payable/refundable with previous periods and explain unusual movements.
• Use a second‑person review (four‑eyes principle).
• Set reminders: 5 days before filing and 2 days before payment.
• Store one standard ‘evidence pack’ per period (ledgers, reconciliations, key invoices).

FAQ

Can I request an extension?

Latvian rules allow VID to extend filing deadlines in specific cases based on a motivated written request. In practice, this is the exception.

What if an audit has already been announced?

Latvian rules provide procedural limitations: missing returns may not be accepted after a notification of the start of a tax audit. File as early as possible.

Will I always get fined?

Not always, but the risk exists. Delay length, repetition, and circumstances matter. Keep evidence and working papers in order.

VAT register removal: why it matters operationally

If VID removes a company from the Latvian VAT register due to prolonged non-compliance, the impact is not only administrative. It can affect invoicing (you may need to issue invoices without Latvian VAT), input VAT recovery, and customer trust-especially in B2B where counterparties check VAT status. Re‑registration may take time and may require explaining the business model and compliance setup. That is why the 30-day threshold should be treated as a hard internal deadline for ‘must‑file‑now’ action.

Documentation: what to keep when you file late

When a return is filed late, the best defence is clarity. Keep a simple evidence pack for the period so that you can explain numbers quickly if asked:

• VAT sales ledger and VAT purchase ledger exports used for the return.
• A reconciliation note (how ledgers tie to the general ledger / revenue & cost accounts).
• A short list of key invoices (largest values, unusual items, cross‑border items).
• If VAT was payable: proof of payment and the internal approval trail.
• If the return was late due to objective reasons: evidence (system outage proof, bank error, illness documentation, etc.).

Corrections: common triggers and a safe approach

Corrections are normal-even in well‑run finance teams. The key is to avoid turning corrections into a monthly habit. Common triggers include late supplier invoices, credit notes, import documents, and reclassification of cross‑border services. A safe approach is to log each correction with (a) the reason, (b) the value impact, (c) supporting documents, and (d) the date when the correction was submitted in EDS.

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Sources:

• VAT return filing and payment deadlines (Latvia)‍
• Value Added Tax Law - likumi.lv‍
• Law On Taxes and Duties‍
• Administrative Liability Law (penalty unit value)‍
• Cabinet Regulation No. 40 on VAT returns‍
• Taxpayer rating system‍
• Corrections and amendments (VAT return PVN 4)‍
• Methodological material on VAT return completion‍
• VID guidelines on setting administrative penalties

Last updated 2026, February 11