It is possible to legally save on UVTN in Latvia if a passenger vehicle is used for business purposes and is declared in the CSDD register. This exemption is expressly provided for in Section 14 of the Vehicle Operation Tax and Company Light Vehicle Tax Law, and it is also confirmed in CSDD’s explanation of tax exemptions.
This means that the company is not “avoiding” the tax, but rather using an exemption provided for by law. To apply it, specific conditions must be met: the vehicle must be declared in e-CSDD, the provider of the route control system must be indicated, and trip records must be properly maintained in accordance with legal requirements.
The monthly rates published by CSDD show that for passenger vehicles first registered after January 1, 2005, the rate starts from EUR 29 per month if the engine capacity is up to 2000 cm³, from EUR 46 per month if it is between 2001 and 2500 cm³, and from EUR 62 per month if the engine capacity exceeds 2500 cm³. For vehicles first registered on or before January 1, 2005, the rate starts from EUR 46 per month, while for electric vehicles it is EUR 10 per month.
The more vehicles a company has, the greater the overall savings potential. However, even with one vehicle, a well-organized approach can produce a real result. That is why the most practical path for a company is simple: install GPS, declare the vehicle correctly, organize the records properly, and use the exemption provided by law.
The specialists at UVTN.lv have extensive experience specifically in matters related to company light vehicle tax and GPS vehicle tracking, and we will be glad to help all Latvian companies save money, because we know how important this is.
For more information, see the Law.
