Capital
Riga
Currency
Euro
Languages
Latvian
Population size
1.9M
Average Monthly Salary
€1200
EU
Since 2004
Region
Northern-Europe
Gift Giving Norms
Respectful, modest gifts typical
Major Corporate Gift Days
Christmas, Independence Day
Customs Complexity
Medium
VAT - Standard Rate
21%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Under Latvian law, non-cash benefits provided to employees can be deemed taxable income unless they qualify as essential for work duties. The State Revenue Service (Valsts ieņēmumu dienests, VID) determines whether items are job-related or personal perks.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Necessary Equipment
If branded apparel or gear is required for daily tasks (e.g., safety gear, mandatory uniform), it is typically not considered a taxable benefit.
Logo-Centric Accessories
T-shirts, mugs, or other items with a visible company logo—especially if consistently distributed to all staff—can often be viewed as workplace identity pieces rather than personal benefits.
Potentially Taxable Benefits
High-Value or Purely Personal Items
Electronics, high-end apparel, or goods used predominantly outside work risk being classified as taxable salary. The employer must then handle any additional wage tax or social insurance obligations.
Frequent Gifting
Multiple gift distributions each year may raise concerns of disguised remuneration. Consult local tax professionals if you plan repeated merchandise drops annually.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Business gifts are often tax-deductible if there’s a demonstrable promotional or client-relations purpose. Repetitive or extravagant gifts lacking clear commercial rationale can face scrutiny from VID.
Compliance & Anti-Bribery
Latvia enforces anti-corruption standards, particularly involving public officials. Ensure thorough documentation for higher-value gifts to avoid suspicions of impropriety.
1.3 Marketing Merch
Items (e.g., T-shirts, pens, reusable water bottles) handed out at fairs or conferences are typically recorded as marketing expenses, provided you maintain records confirming their promotional aim.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Goods from non-EU sources exceeding certain value thresholds (often €150) can incur customs duties, plus Latvian VAT (21%) on (value + duties + shipping).
Documentation
A clear commercial invoice, HS codes, and product descriptions assist customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers all import fees, smoothing the delivery for Latvian recipients.
Delivered At Place (DAP)
The recipient pays duties/VAT upon arrival, which can cause delays or unexpected costs if unprepared.
2.4 With Monday Merch
We dispatch from Rotterdam (the Netherlands), enabling duty-free deliveries to Latvia. We can also support you with VAT compliance throughout the process to ensure all steps remain tax compliant.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Must employees pay tax on uniform distributions?
Usually not, if they’re essential for work; personal items may be taxed.
Are B2B gifts deductible?
Yes, if they’re promotional or relationship-driven, within reasonable costs.
Cultural pointer?
Latvians appreciate functional, modest items rather than overtly expensive gifts.
