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Generic Tax Name Motor vehicles tax - Company car tax
Tax name in the national language Uzņēmumu vieglo transportlīdzekļu nodoklis
Tax name in English Company car tax
Member State LV-Latvia
Tax in force since 2011/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Law on Vehicle Use Tax and Company Car Tax (in force since January 1, 2011)

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by


Geographical Scope

Territory of Latvia


Commercial entities and foreign merchant branch who own or hold a passenger vehicle which is used also for personal needs of employees and/or proprietaries.

Tax object and basis of assessment

Vehicles by its structure and internal equipment designed for passengers and their baggage, where the number of seats, excluding the driver’s seat is not more than eight seats, and which is registered as a car, a passenger car and is owned or held by the entrepreneur or foreign country entrepreneurs' subsidiaries or farms.

Deductions, Allowances, Credits, Exemptions
  1. Emergency vehicles

  2. Taxis

  3. Vehicles owned or held by an authorised person of a car manufacturer and registered in the Road Traffic Safety Directorate (RTSD) as demonstration cars

  4. Vehicles registered in the RTSD and used for short-term rent (up to a year) in case car rental and car sales constitutes at least 90% of company’s turnover

  5. Vehicles registered in RTSD, which a company uses solely for its economic activity

  6. Company (or agricultural farm), if it engages in agriculture on the land it owns, holds or rents and if on the 1st of January support from the Rural Support Service under Single Area Payment Scheme is confirmed, does not have to pay tax for one vehicle, if the income from agricultural production reaches at least EUR 4,269 (excluding state and EU support), and for every additional vehicle for every EUR 71,144 gained from agricultural production (excluding state and EU support)

  7. For the time when the vehicle was stolen, which is confirmed by police documents or information in the register on stolen and found vehicles

  8. For the time when the vehicle was seized in cases stated by law and usage of the vehicle in road traffic was prohibited

  9. For the time when the vehicle was unregistered for its alienation in Latvia or deporting it from Latvia; and for the time when registration of a car was temporarily suspended with handing over registration plates

  10. Vehicles having a “historical car” status

  11. Vehicles registered as “sport” cars

  12. For the time when a vehicle registered in Latvia was deported and registered abroad

Declaration about the subsequent calendar year for one of the above mentioned vehicles obtained in ownership or hold shall be made in 15 days counting from the day of vehicle registration.

Vehicles used only for economic activities entrepreneur shall prove by administrating the drives relevant to the economic activity.

Tax application procedure can be changed once a year.

Rate(s) Structure

For vehicles first registered from 1 January 2005 depending on the engine capacity:

  • up to 2,000 cm3 the rate is EUR 27.03 per month
  • from 2,001 cm3 to 2,500 cm3 the rate is EUR 42.69 per month
  • over 2,500 cm3 the rate is EUR 56.91 per month.

For vehicles first registered before 1st January 2005 the rate is EUR 42.69 per month.

Tax due date

The tax on each vehicle owned or held by tax payer shall be paid for months in which those cars are in possession or holding of the tax payer.

Before the annual roadworthiness test the tax payer shall pay the tax for the months from beginning of the annual calendar year including the previously unpaid periods. The tax payer shall pay the tax for the month, in which the vehicle is registered on the tax payer as owner or holders name.

The tax payer has the rights to pay the tax before the roadworthiness test in the full amount per whole calendar year.

Tax collector

Road Traffic Safety Directorate and the State revenue Service.

Special features
Economic function

Environmental taxes

Tax revenue
ESA95 code d29bc

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 16.85 EUR 0.08
2011 17.18 EUR 0.09


The revenue data include Vehicle Exploitation tax.