VID

VID (State Revenue Service of Latvia) is the governmental authority responsible for tax administration, financial flow control, combating the shadow economy and ensuring compliance with tax legislation.
It is VID that calculates and oversees tax obligations for individuals and companies, as well as manages systems such as EDS.

What functions VID performs

VID handles everything related to taxes, reporting and financial oversight. Its main areas of work include:

  • administration of taxes and duties,
  • processing annual declarations and other reports,
  • monitoring tax payments by employers and private individuals,
  • combating tax evasion,
  • registration of companies and VAT payers,
  • customs control,
  • managing the EDS system,
  • providing consultations to taxpayers.

In essence, VID is the central authority regulating tax processes in the country.

What VID does for individuals

For residents of Latvia, VID performs many important daily tasks:

  • calculates tax obligations,
  • processes the refund of overpaid IIN,
  • manages the tax book (Nodokļu grāmatiņa),
  • accepts data about dependents, benefits and deductions,
  • processes annual tax declarations,
  • provides electronic services through EDS.

Nearly all processes that affect net salary and tax burden go through VID.

What VID does for businesses

For businesses, VID:

  • accepts reports and declarations,
  • controls the calculation and payment of taxes,
  • registers companies and licences,
  • monitors import/export through customs,
  • conducts inspections and audits,
  • manages the VAT payer registry.

Working with VID is a regular part of operations for any legal entity in Latvia.

What is EDS and how it relates to VID

EDS (Electronic Declaration System) is an electronic platform of VID through which taxpayers submit declarations, manage their tax book, receive notifications, enter benefit data and communicate with the service.

Through EDS you can:

  • fill in the tax book,
  • submit the annual declaration,
  • add dependents,
  • activate the non-taxable minimum,
  • submit VAT and business documents,
  • receive messages from VID.

EDS is the main interface for communication with VID.

Why VID is important for every employee

Because VID:

  • controls correct tax calculation,
  • determines IIN refund eligibility,
  • records benefits and deductions,
  • keeps information about dependents,
  • maintains income and expense history,
  • forms data affecting creditworthiness.

Errors in VID data can lead to incorrect salary calculation, tax overpayment or loss of benefits.

How VID affects salary

VID determines:

  • whether the 510 EUR non-taxable minimum is applied in 2025,
  • whether dependents are declared,
  • whether additional benefits apply,
  • the correctness of the tax rate.

All these factors directly affect the final net salary a person receives "in hand".

How to conveniently check VID data

The simplest way to work with VID is to use:

The calculator takes VID parameters into account and automatically shows:

  • the amount of taxes,
  • the size of social contributions,
  • active benefits,
  • the final net salary.