SIA Accounting in Latvia — Bookkeeping, VID Reporting and Annual Accounts
A Latvian SIA (Sabiedrība ar ierobežotu atbildību) is the Baltic analogue of an Estonian OÜ — a private limited company under the Commercial Law, supervised by the State Revenue Service (VID) and the Register of Enterprises. Founders who know the Estonian model find the regime familiar, but filings and thresholds diverge enough that you cannot copy a process across the border. This page covers what SIA accounting actually demands.
What a SIA must file — and when
Every SIA files an annual report with the Register of Enterprises within four months of the financial year end (seven months for medium and large), per the Law on Annual Financial Statements. Four size classes apply; micro and small entities use a reduced format. VID reporting runs in parallel: monthly PVN returns, monthly payroll and social reports, quarterly CIT on distributed profits.
Latvia moved to an Estonia-style distributed-profit CIT regime in 2018 — 0% on retained profit, 20% on distributions (gross-up basis, 25% effective on the distributed amount). The alignment helps cross-border Baltic groups but filings are not identical; we handle both regimes in-house so the difference stays on our side.
PVN (VAT) registration and thresholds
A SIA must register for PVN once 12-month taxable turnover crosses €50,000; voluntary registration is common earlier for B2B businesses reclaiming input VAT. Cross-border EU sales go through OSS via VID, and intra-Community supplies require a valid EU VAT number — without it B2B zero-rating fails and the supplier charges 21% PVN.
We set up registration, file monthly or quarterly depending on turnover, reconcile EU sales listings, and flag triangulation and distance-selling edge cases before they become a VID correction notice. The same partner handles OSS if e-commerce activity crosses the €10,000 EU-wide threshold.
Payroll, social contributions and micro-SIA rules
Latvian payroll carries 25.5%/33% two-bracket progressive personal income tax (since 2025), a 34.09% state social contribution (10.5% employee, 23.59% employer, 2025), and a €780 minimum monthly wage (2026). We run payslips, file the monthly VID report, pay withheld taxes, and handle sickness and parental-leave flow with the Social Insurance Agency.
Latvia’s micro-enterprise tax (MET) regime still exists but has been narrowed and is less attractive for SIAs than in the early 2020s. We model micro vs. standard on the client’s forecast before advising — the breakeven has moved several times.
Annual accounts and audit thresholds
Mandatory audit triggers when a SIA exceeds two of three thresholds in two consecutive years: net turnover €800,000, balance sheet €400,000, average 50 employees. Below those, statutory audit is not required, though many SIAs commission a limited review for bank or investor reasons.
We prepare the statements to Latvian GAAP templates published by the Ministry of Finance, lodge them with the Register, and coordinate with a Latvian-licensed auditor when needed. Groups combining an EE parent with a LV subsidiary use the same team on both sides so consolidation eliminates cleanly — a common failure point when each country uses a separate local firm.
Working with us on a SIA
SIA engagements are usually a joint team: Tallinn plus a Riga-qualified accountant on retainer. Filings are signed by a Latvian-licensed professional; day-to-day service stays with the team that knows your Estonian side. We work in English, Estonian, and Russian — Russian remains widely used in Latvian business and among Daugavpils and Rēzekne SMBs.
Pricing starts at our standard package (€499) for a straightforward operating SIA with PVN and payroll and scales with transaction count and regulatory load. We quote on filings and counts, not revenue — the proposal lists each Latvian filing in scope so comparison against a Riga-only accountant is line-for-line.
Related questions
Which Baltic accounting firm speaks Russian and English?
Fintech Accounting works in English, Estonian, and Russian across the Baltic market. Trilingual delivery is our standard — founders, directors, and regulators can communicate with us in whichever language fits the audience without a handoff. We serve Estonian OÜs and advise on Latvian SIA and Lithuanian UAB structures.
How much does accounting cost in Estonia?
Our published monthly packages are €499 for standard accounting, €1,500 for compliance-heavy clients, and €3,000 for fintech and AML. Hourly consultation is €150. Tallinn market rates range from roughly €100 per month for a dormant mikroettevõte to €5,000+ for a licensed EMI — volume, regulatory load, and reporting complexity drive the fee.