Car Tax in Latvia 2026 — Complete Guide
Latvia has three main vehicle taxes — the Company Vehicle Tax (UVTN), the Annual Road Tax, and the Excise Duty. Each has its own rules, rates and payment procedures. This guide explains all three tax types, provides calculation examples for real car models, and covers the benefits for electric vehicles.
🔍 Check a car before buying
Before purchasing a car — check the VIN code to find out the manufacturer data and vehicle history. Avoid cars with tax debts or hidden damage.
📋 Table of Contents
1. What Are Car Taxes in Latvia?
In Latvia, vehicle owners and users may be subject to three different types of tax depending on the vehicle type, the owner's status (private individual or company) and the car's origin.
| Tax type | Who pays | Frequency | Administered by |
|---|---|---|---|
| UVTN | Companies (legal entities) | Monthly | SRS (VID) |
| Annual Road Tax | All vehicle owners (individuals + companies) | Annually | CSDD / SRS |
| Excise Duty | Car importers (from outside the EU) | One-time (on import) | SRS (VID) |
ℹ️ Important to understand
Private individuals in Latvia do not pay UVTN — it applies only to companies. Private individuals pay only the Annual Road Tax (yearly) and, if necessary, the Excise Duty (when importing a car from outside the EU).
2. UVTN — Company Vehicle Tax
UVTN (Company Vehicle Tax) is a monthly tax paid by companies for each passenger car (M1 category or N1 category with a gross weight up to 3,500 kg) registered under the company's name. The purpose of the tax is to offset the tax advantages companies gain by using vehicles in their business operations.
⚠️ UVTN calculation principle
UVTN is calculated based on three factors — CO2 emissions, engine power and gross vehicle weight. You pay the highest of the three calculated amounts. Not the sum, but the maximum!
UVTN by CO2 emissions (g/km)
| CO2 emissions (g/km) | UVTN (EUR/month) | UVTN (EUR/year) |
|---|---|---|
| 0 g/km (electric vehicle) | 15 | 180 |
| 1 – 50 g/km (PHEV) | 25 | 300 |
| 51 – 100 g/km | 40 | 480 |
| 101 – 150 g/km | 60 | 720 |
| 151 – 200 g/km | 95 | 1 140 |
| 201 – 250 g/km | 135 | 1 620 |
| more than 250 g/km | 170 | 2 040 |
UVTN by engine power (kW)
| Engine power (kW) | UVTN (EUR/month) | UVTN (EUR/year) |
|---|---|---|
| up to 50 kW | 20 | 240 |
| 51 – 100 kW | 45 | 540 |
| 101 – 150 kW | 75 | 900 |
| 151 – 200 kW | 105 | 1 260 |
| more than 200 kW | 145 | 1 740 |
UVTN by gross vehicle weight (kg)
| Gross weight (kg) | UVTN (EUR/month) | UVTN (EUR/year) |
|---|---|---|
| up to 1 000 kg | 20 | 240 |
| 1 001 – 1 500 kg | 40 | 480 |
| 1 501 – 2 000 kg | 65 | 780 |
| 2 001 – 2 500 kg | 95 | 1 140 |
| more than 2 500 kg | 125 | 1 500 |
📌 How UVTN is calculated — in practice
For each car, the tax is calculated by all three factors separately, then you pay the highest of the three calculated amounts.
Example: BMW 520d company car — CO2 142g → €60/month; 140kW → €75/month; weight 1750kg → €65/month. UVTN = €75/month (highest by kW factor).
3. Annual Road Tax
The Annual Road Tax (vehicle operation tax) is an annual tax paid by all vehicle owners in Latvia — both private individuals and companies. The amount depends on the vehicle category, weight and engine power.
M1 category — passenger cars
M1 — passenger car with no more than 8 seats in addition to the driver.
| Gross weight | Engine power | Tax EUR/year |
|---|---|---|
| up to 1 500 kg | up to 74 kW (≤100 HP) | 32 |
| up to 1 500 kg | 75 – 110 kW (101–149 HP) | 55 |
| 1 501 – 2 000 kg | any power | 80 |
| more than 2 000 kg | any power | 120 |
N1 category — light commercial vehicles (vans)
N1 — commercial vehicles with a gross weight up to 3 500 kg (e.g. VW Transporter, Ford Transit).
| Gross weight | Tax EUR/year |
|---|---|
| up to 1 500 kg | 42 |
| 1 501 – 2 500 kg | 75 |
| 2 501 – 3 500 kg | 105 |
Motorcycles (L category)
| Vehicle | Tax EUR/year |
|---|---|
| Motorcycle, moped (L1, L3) | 25 |
| Tricycle, quadricycle (L2, L5, L7) | 35 |
✅ Electric vehicle exemption
Fully electric vehicles (BEV) are exempt from the Annual Road Tax. Tax €0/year — regardless of weight or power.
4. Excise Duty When Importing a Car
When importing a car from abroad, you may be required to pay Excise Duty. The amount and applicability depend on the car's age, engine displacement and the source of import (EU or non-EU).
🇪🇺 Important — import rules
- From EU countries: no Excise Duty, no customs duty. Only 21% VAT if the car is purchased from a VAT payer.
- From outside the EU (USA, Japan, etc.): Excise Duty + 6.5% customs duty + 21% VAT.
- Cars older than 7 years: Excise Duty does not apply (for non-EU imports).
Excise Duty — non-EU imports (cars up to 7 years old)
| Engine displacement (cm³) | Excise Duty (EUR) |
|---|---|
| up to 1 500 cm³ | 320 |
| 1 501 – 2 000 cm³ | 480 |
| 2 001 – 2 500 cm³ | 720 |
| 2 501 – 3 000 cm³ | 1 020 |
| more than 3 000 cm³ | 1 380 |
Full import tax comparison
| Tax type | From EU | From outside EU (car <7y) | From outside EU (car >7y) |
|---|---|---|---|
| Customs duty | — | 6.5% | 6.5% |
| Excise Duty | — | €320–1380 | — |
| VAT | 21% (if VAT transaction) | 21% | 21% |
🧮 Import cost calculator
For a precise tax calculation for a specific car model, check our import calculator.
Import calculator →5. Electric Vehicle and Hybrid Tax Benefits
Electric vehicles and plug-in hybrids (PHEV) enjoy significant tax benefits in Latvia in 2026. The government uses this approach to encourage the transition to green transport.
| Car type | UVTN (for company) | Annual Road Tax | Savings vs petrol |
|---|---|---|---|
| 🔋 Electric vehicle (BEV) | €15/month (0g CO2) | €0/year | up to €1860/year |
| 🔌 Plug-in hybrid (PHEV, <50g) | €25/month | €55–80/year | up to €840/year |
| Full hybrid (HEV, 90–120g) | €40–60/month | €55–80/year | up to €420/year |
| Petrol / Diesel (150g+ CO2) | €60–170/month | €80–120/year | — |
💚 Example: Company chooses Tesla Model 3 vs BMW 520d
Tesla Model 3 (BEV): UVTN €15/month = €180/year + road tax €0 = €180/year
BMW 520d (142g CO2, 140kW): UVTN €75/month = €900/year + road tax €80 = €980/year
Savings with an electric vehicle: €800/year!
Why choose a PHEV for a company?
Plug-in hybrids (PHEV) with CO2 emissions below 50g/km cost a company only €25/month in UVTN — compared to €60–95/month for a standard petrol car. That means €420–840 in savings per year on taxes alone. Factor in fuel savings and the PHEV pays for itself faster than you might think.
6. Tax Calculation Examples — 3 Real Cars
Let's look at three popular car models and calculate the tax amount for both a private individual and a company.
🚗 Audi A4 2.0 TDI (typical variant)
CO2 emissions:
~120 g/km
Engine power:
110 kW (150 HP)
Gross weight:
~1 700 kg
Category:
M1
| Tax | Private individual | Company |
|---|---|---|
| UVTN | — | €75/month = €900/year (110kW → €75, highest) |
| Annual Road Tax | €80/year (1501-2000kg) | €80/year |
| Total per year | €80 | €980 |
🌿 Toyota RAV4 Hybrid (full hybrid)
CO2 emissions:
~102 g/km
System power:
163 kW (222 HP)
Gross weight:
~2 095 kg
Category:
M1 (SUV)
| Tax | Private individual | Company |
|---|---|---|
| UVTN | — | €105/month = €1260/year (163kW → €105, highest) |
| Annual Road Tax | €120/year (>2000kg) | €120/year |
| Total per year | €120 | €1 380 |
🔋 Tesla Model 3 Standard Range (electric vehicle)
CO2 emissions:
0 g/km
Engine power:
208 kW
Gross weight:
~1 900 kg
Category:
M1 (BEV)
| Tax | Private individual | Company |
|---|---|---|
| UVTN | — | €145/month = €1740/year (208kW → €145, highest) |
| Annual Road Tax | €0 (BEV exempt) | €0 (BEV exempt) |
| Total per year | €0 ✓ | €1 740 |
🧮 Calculate your car's taxes
Use our tax calculator for a precise calculation based on your car's data.
Tax calculator →7. How and Where to Pay Car Tax
Each of the three tax types is administered and paid differently. Below is a practical guide for each tax.
Paying the Annual Road Tax
e.csdd.lv — online (recommended)
Log in with your internet bank or e-ID. Find your vehicle → pay the tax by card or internet bank. Payment is processed immediately.
CSDD client centres in person
At any CSDD client centre. Bring your ID and vehicle registration document.
Latvian banks
At any bank in Latvia, presenting the SRS invoice or using internet banking with the payment details.
Paying UVTN (for companies)
- UVTN is filed and paid through the SRS Electronic Declaration System (EDS) — eds.vid.gov.lv
- The declaration must be filed and the tax paid each month by the 15th for the previous month
- The company must declare each car separately with the VIN code, CO2 data, kW and weight
- Data can be imported from the CSDD database or entered manually
Paying Excise Duty (when importing)
- Submit a customs declaration to the SRS customs administration
- SRS calculates the customs duty, Excise Duty and VAT
- Pay to the SRS-specified bank details (internet bank or cashier)
- After payment, receive customs clearance for vehicle registration at CSDD
📅 Deadlines — key dates
- Annual Road Tax: must be paid before the technical inspection, no fixed annual date
- UVTN: the 15th of each month for the previous month
- Excise Duty (import): before vehicle registration at CSDD
8. Penalties for Non-Payment
Failing to pay taxes or paying late results in additional costs and can hinder vehicle operation or company activity.
🚫 Consequences of not paying the Annual Road Tax
- CSDD will not issue a technical inspection certificate — without it, the car cannot be driven
- Vehicle may be stopped from traffic — road police can check the tax status
- Late fees — interest is charged for each overdue day
- Administrative fine — can reach €280 for driving without a technical inspection
🏢 Consequences of not paying UVTN (for companies)
- SRS fine up to 30% of the unpaid tax amount
- Late fees — 0.05% per day of the debt amount
- Bank account seizure — SRS can freeze account transactions
- Publication of tax debts — in the SRS public registry
- Criminal liability — for large debts (over €7 100), criminal prosecution is possible
| Violation | Penalty / consequences |
|---|---|
| Annual Road Tax not paid | No technical inspection, fine up to €280 |
| UVTN late payment | Fine 30% + 0.05%/day |
| Excise Duty evasion | Fine + criminal prosecution |
| Incorrect UVTN declaration data | Additional taxes + 10–30% fine |
⚠️ Recommendation
If you have accumulated a tax debt, it is better to contact SRS yourself and agree on a payment schedule. SRS often offers voluntary tax debt repayment options with reduced or no penalties.
9. Check a Car Before Buying
Before buying a car, it is important to check not only its technical condition, but also any tax debts and history. A VIN code check lets you find out important information about any vehicle.
What do you learn from a free VIN check?
- Manufacturer and model data (VIN code decoding)
- Year and country of manufacture
- Engine type and displacement
- Vehicle category
- Tax category for calculation purposes
What do you learn from a full carVertical report?
- Full accident and damage history
- Odometer data verification (rollback detection)
- Service history
- Theft registries
- Lien and financing information
- Data from 900+ sources in Europe and the USA
💡 Why check the VIN before calculating taxes?
Sellers sometimes list incorrect CO2 or kW data, which can change the tax category. A VIN check lets you verify the actual technical specifications and calculate the exact tax amount before buying — not after.
Useful Tools
10. Frequently Asked Questions
What car taxes exist in Latvia in 2026?
Latvia has three main car taxes: (1) UVTN — Company Vehicle Tax (paid monthly by companies); (2) Annual Road Tax — yearly for all M1 category vehicle owners; (3) Excise Duty — a one-time payment when importing a car from outside the EU.
How much is the UVTN in 2026?
The UVTN amount depends on three factors and the highest is paid: CO2 emissions (0g = €15/month, 251g+ = €170/month), engine power (≤50kW = €20/month, 200kW+ = €145/month), gross weight (≤1000kg = €20/month, 2500kg+ = €125/month). The tax is paid by companies, not private individuals.
Do private individuals pay UVTN?
No. UVTN (Company Vehicle Tax) is paid only by legal entities — companies and self-employed persons — whose car is registered under the company's name. Private individuals do not pay UVTN.
How much is the Annual Road Tax in 2026?
Annual Road Tax for M1 category (passenger car): ≤1500kg and ≤74kW = €32/year; ≤1500kg and 75-110kW = €55/year; 1501-2000kg = €80/year; >2000kg = €120/year. For motorcycles — €25/year. The tax is paid annually at CSDD or SRS.
Do electric vehicles pay UVTN?
No. Fully electric vehicles (BEV) with 0g CO2 are exempt from UVTN. Plug-in hybrids (PHEV) with low CO2 emissions pay a reduced UVTN — for example, a PHEV with 30g CO2 emissions pays €25/month for a company.
How much is the Excise Duty when importing a car from abroad?
Excise Duty for a car younger than 7 years when importing from outside the EU depends on the engine displacement and vehicle age. Additionally, you must pay a 6.5% customs duty (from outside the EU) and 21% VAT. From EU countries, there is no Excise Duty.
How is UVTN calculated for an Audi A4 2.0 TDI company car?
Audi A4 2.0 TDI (typical variant): CO2 ≈ 120g → €60/month; power ≈ 110kW → €45/month; weight ≈ 1500kg → €40/month. UVTN = the highest = €60/month or €720/year.
Where do you pay the Annual Road Tax?
The Annual Road Tax can be paid: (1) e.csdd.lv — online via internet bank; (2) at CSDD client centres in person; (3) at any Latvian bank with an invoice; (4) via the SRS Electronic Declaration System (EDS). The deadline is before the technical inspection.
What happens if you don't pay the car tax?
For not paying the Annual Road Tax: CSDD can refuse to issue the technical inspection certificate, the car can be stopped from traffic, and late fees accumulate. For not paying UVTN as a company: SRS can impose fines up to 30% of the unpaid amount and place a seizure on bank accounts.
How to check if a car has tax debts before buying?
Before purchasing a car, be sure to check the VIN code at autopase.lv — you'll learn about the vehicle's history, registration data and potential risks. Additionally, you can check the CSDD database and the SRS public portal.
Does a PHEV company car pay less UVTN than a petrol car?
Yes, usually. A plug-in hybrid with, for example, 45g CO2 costs a company €25/month by the CO2 factor, while a petrol car with 150g CO2 costs €60/month. The savings can reach €420/year or more.
Are there discounts on the Annual Road Tax?
Electric vehicles (BEV) are exempt from the Annual Road Tax. Persons with disabilities may be entitled to benefits — check the current SRS regulations. All other cars pay the standard rates.
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🔎 Check any car before buying!
Free VIN check — uncover accident history, number of owners, mileage and liens. Official CSDD data + international reports.
Check VIN for free →Related Guides
Latvia Car Market 2026
CSDD statistics, fleet and imports
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How much car maintenance costs
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Car Leasing
Leasing types & conditions
Electric Cars in Latvia
Selection, charging & costs
Car Insurance
MTPL, CASCO & more
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This guide has been prepared based on current Latvian tax legislation and SRS regulations. Updated February 2026.