Electricity Tax

The procedure of levying electricity tax in the Republic of Latvia is prescribed by the Electricity Tax Law and respective Cabinet Regulations.

Electricity tax is applied to electricity supplied to final customers (including electricity generated from renewable energy resources, by cogeneration power stations), electricity used for generating thermal energy and electricity supplied during the taxation period for self-consumption (including administrative buildings).

The tax exemption is applied to electricity used by households and electricity used for generating electricity in order to ensure the electricity generation process directly (the exemption is applicable from 1 January 2023), as well as electricity used for transportation of goods and public passenger transport and in other tax exemption and relief cases stipulated by Section 6 of the Electricity Tax Law.

The taxpayer, by using the SRS Electronic Declaration System, shall complete the electricity tax declaration on the results of the relevant taxation period and shall submit it to the SRS within 20 days after the end of the calendar month. The tax declaration shall be completed and submitted also for the taxation period when no taxable object is formed or the tax assessed in the taxation period is EUR 0.00.

The assessed tax amount shall be paid into the State budget by the 23^rd date of the next month following the end of the calendar month.

The tax has been introduced in Latvia in accordance with the requirements of European Commission directive and has been applied since 1 January 2007. The European Union adopted the directive in 2003, i.e., before Latvia joined the European Union. Prior to joining the European Union, Latvia managed to get the transition period for the application of the directive; thus, Latvia started to implement the directive on 1 January 2007.

Electricity tax rate