Latvia: Domestic Corporate Taxation
Sales Taxes and Vat
The standard VAT rate is 21% (this will rise to 22% on January 1, 2011). There is a reduced rate of 10% that applies to, for example, pharmaceutical products, medical equipment, passenger transportation, and heating and electricity. A number of goods and services were previously included in the lower rate, such as books, hotel accommodation, funeral services, and entry to sporting events, but these are now charged at the standard rate.