Latvian Cabinet approves VAT Law amendments for ViDA platform deemed supply and 0% VAT on EU SAFE defence supplies — bill goes to the Saeima
This change is proposed and is not law. The rules below describe what would change if it is adopted.
This page records one dated change. For the rules in Latvia as they stand today, see the Latvia guide →
- Jurisdiction
- Latvia
- Tax
- VAT
- Change type
- Rate change
- Status
- Proposed
- Impact
- Watch
- Announced
- 6 November 2026
- Effective
- 1 January 2027
- Authority
- Ministru kabinets (Cabinet of Ministers of the Republic of Latvia)
- Systems
- Tax engine, E-commerce
- Verified
- Fetched from official source · high confidence
Electronic interfaces (marketplaces and platforms) facilitating intra-EU distance sales of goods to Latvia, suppliers using the Union OSS scheme, suppliers under the EU SAFE defence instrument, and suppliers of excise goods to diplomatic and consular missions in Latvia — once the Saeima adopts the bill.
No action yet — monitor the Saeima readings (document 4/Lp15); platforms and OSS users selling into Latvia should note the planned 1 January 2027 ViDA changes.
Tax engineE-commerce
Latvia's Cabinet of Ministers approved VAT Law amendment bill 25-TA-2418 on 6 November 2026 (Protocol No. 62, item 29) and sent it to the Saeima. From 1 January 2027 the bill would transpose Article 2 of Council Directive (EU) 2025/516 (ViDA): it extends the platform deemed-supplier rule to supplies made to unregistered taxable persons, narrows what counts towards the EUR 10,000 distance-sales threshold, makes sellers using the Union OSS tax at destination whatever their turnover, and winds down the call-off stock rule by 30 June 2029. It also introduces 0% VAT for supplies under the EU SAFE defence instrument (Council Regulation (EU) 2025/1106) and for excise goods bought by diplomatic and consular missions. The bill is not yet law.
What changed in detail
This is a bill, not law. Latvia’s Cabinet of Ministers adopted draft law 25-TA-2418, “Grozījumi Pievienotās vērtības nodokļa likumā” (Amendments to the Value Added Tax Law), at its sitting of 6 November 2026 (Protocol No. 62, §29). The Ministry of Finance is the responsible ministry. It was registered in the Saeima on 10 November 2026 as bill No. 4/Lp15 (Saeima) and has not yet had a reading.
The bill would:
- transpose Article 2 of Council Directive (EU) 2025/516 (ViDA) from 1 January 2027: extending the deemed-supplier rule for platform-facilitated sales to supplies to unregistered taxable persons, narrowing what counts towards the EUR 10,000 distance-sales threshold, making Union-OSS users tax at destination regardless of turnover, and winding down the call-off stock rule (no new transfers after 30 June 2028; the rule lapses on 30 June 2029). The OSS Union scheme already covered all intra-EU distance sales of goods from 2021;
- introduce a 0% VAT rate for supplies made under the EU SAFE instrument (Council Regulation (EU) 2025/1106, Security Action for Europe), applying through transitional provisions from the SAFE Regulation’s entry-into-force date; and
- clarify that excise goods purchased by third-country and EU diplomatic and consular missions registered in Latvia are taxed at 0%.
What it means
The ViDA part is not a Latvian policy choice: the 1 January 2027 platform and OSS changes come from the directive and every member state has to transpose them. What this bill decides is how Latvia writes them in, and the Saeima has very little time before that date. Marketplaces facilitating intra-EU goods sales into Latvia should plan for deemed-supplier treatment from January regardless of the reading timetable, and check the final text once adopted. The SAFE zero rate matters only to defence suppliers working under that instrument.
Proof
Ministru kabineta 06.11.2026. sēde (sēdes sākums plkst.10.00) Pieņemts Nr.62/29.§Cabinet of Ministers sitting of 06.11.2026 (sitting begins at 10.00) — Adopted — No. 62/29.§
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