Latvia has applied the construction reverse charge since 2012 under Article 142 of the VAT Act: the supplier charges no VAT and the recipient accounts for the tax.
When it applies
The transaction is domestic and between two registered VAT payers; the service is a construction service — construction works, plus design included in a construction services contract; and the documents meet the statutory requirements. If you are not VAT-registered, the regime does not apply to you at all.
How to show it
The estimate is unchanged down to the net total. For a private client, 21% VAT on its own line. For a registered VAT payer receiving a construction service, the VAT line shows zero with a note that the reverse charge applies and a reference to Article 142; the recipient accounts for the tax. The reference is mandatory on the invoice.
An important nuance: the tax authority states that LBN 501-17 is not the criterion for deciding which services fall under the reverse charge. A line sitting in an LBN-format estimate is not automatically a construction service for VAT purposes — check borderline cases with guidance or an accountant.
This page is general information, not tax advice. See the estimate template.