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Generic Tax Name Motor vehicles tax - Car registration tax
Tax name in the national language Vieglo automobiļu un motociklu nodoklis
Tax name in English Car and motorcycle tax
Member State LV-Latvia
Tax in force since 2004/05/01
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
Other

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

Social security contribution Employers
Employees
Other
 
Legal base

Till 01.05.2004 Law "On Excise Tax"

From 01.05.2004 Law "On Car and Motorcycle Tax".

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Territory of Latvia.

 
Taxpayers

All legal persons and individual persons in whose name cars and motorcycles are registered in Latvia.

 
Tax object and basis of assessment

Cars previously not registered and first registered in foreign country after 1 January 2009 are liable to the tax according to the CO2 emissions.Motorcycles previously not registered and first registered in foreign country after 1 January 2009 are liable to the tax according to engine capacity.

 
Deductions, Allowances, Credits, Exemptions

Exemptions

1.Cars and motorcycles that are exempted from customs duties in accordance with Regulation 918/83 of the European Union.

2.Cars and motorcycles that are older than 25 years.

3.Cars with an electric motor (electromobiles).

4.Special cars (for example, emergency vehicles, caravans, hearses).

5.Emergency vehicles that are specially equipped for carrying disabled persons in wheelchairs.

6.Specially prepared sports cars and motorcycles.

7.Operational cars and motorcycles, which are intended for the needs of institutions of the Ministry of Interior and the Ministry of Defence or the National Armed Forces.

8.Disabled persons with movement disorders, to whom medical indications for the purchase of specially modified automobiles and allowance for the receipt of reimbursement of vehicle expenditures have been specified (for one specially adjusted automobile registered on the name of the relevant person).

9.Cars and motorcycles, which are registered in other European Union Member States and with which owners or drivers thereof enter Latvia and which are used in Latvia, shall be exempted from the tax, if registration of such automobile or motorcycle in Latvia is not provided for in regulatory enactments.

 
Rate(s) Structure

Previously non-registered cars and first registered in foreign country after 1 January 2009 are liable to the tax according to the CO2 emissions.

Level of CO2 emissions  per gramme
(in gramme per kilometre)        EUR
120 or below 0.43
121 - 170 1.42
171 - 220 2.13
221 - 250 3.56
251 - 300 4.27
301 - 350 5.69
over 350 7.11

Previously registered cars and cars first registered abroad before 1 January 2009 are liable to the tax according to the age of the car (counting from the year of first registration abroad) and engine capacity, if it exceeds 3,000 cc.

Age of the car (in years) Rate, EUR
2 213.43
3 177.86
4 142.29
5-7 106.72
8 113.83
9 120.94
10 128.06
11 142.29
12 156.52
13 184.97
14 213.43
15 241.89
16 270.35
17 298.80
18 327.26
19-25 355.72
Engine capacity, cc   
3,001 - 3,500 426.86
3,501 - 4,000 569.15
4,001-4,500 711.44
over 4,500 853.72

Previously non-registered motorcycles and motorcycles first registered abroad after 1 January 2009 are liable to the tax according to the engine volume capacity of the motorcycle. The rate applied is EUR 0.14 per each cubic centimetre of engine capacity.

Previously registered motorcycles and motorcycles first registered abroad before 1 January 2009 are liable to the tax according to the age of the motorcycle (counting from the year of first registration abroad) multiplying the corresponding rates for cars by 0.25.

 
Tax due date

A person shall pay the tax into the State budget prior to the registration of the relevant car or motorcycle in the Road Traffic Safety Directorate.

 
Tax collector

State Revenue Service.

 
Special features

From January 1 of 1991 till April 30 of 2004 the tax was paid according to the Law “On excise tax” (Excise tax on cars and motorcycles).

 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code d214d (before it was d214adc and d214add)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 8.98 EUR 0.04
2011 7.72 EUR 0.04
2010 5.01 EUR 0.03
2009 3.73 EUR 0.02
2008 13.55 EUR 0.06
2007 23.86 EUR 0.10
2006 19.65 EUR 0.11
2005 13.65 EUR 0.10
2004 10.93 EUR 0.09
2003 10.43 EUR 0.10
2002 10.35 EUR 0.10
2001 9.93 EUR 0.11
2000 10.01 EUR 0.12

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