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.

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.

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.

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.

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.

Road Traffic Safety Directorate and the State revenue Service.