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 swag 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 Swag 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 Swag 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 swag 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 Swag
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
No Customs Duties
Latvia’s EU membership means no customs are due for goods from other EU countries.
VAT Considerations
Intra-EU transactions between VAT-registered entities may apply the reverse-charge mechanism or charge local VAT, depending on each party’s status. Check with a tax advisor for specifics.
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 Swag customs
Practical & Modest
Latvians typically value useful, understated gifts or swag. Showy or extravagant items might be less appreciated.
Gift-Giving Occasions
Christmas (Ziemassvētki) is the key gifting season in Latvia. Some companies also give small tokens on name days or national holidays (e.g., Independence Day on 18 November).
Eco-Friendly Trends
With growing environmental awareness, sustainable or recyclable packaging can make a positive impression.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
EU Environmental Standards
As an EU member, Latvia enforces packaging and waste directives aimed at reducing environmental impact. Opting for greener materials can bolster brand reputation.
Product Labeling
Items like electronics, toys, or cosmetics must follow CE marking regulations. If distributing to Latvian consumers widely, consider local language instructions or labels.
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Remote Employees
If shipping to home addresses, comply with GDPR. Obtain explicit consent and store personal data securely.
Onboarding & Retention
Providing welcome kits (e.g., branded T-shirts, notebooks) usually remains non-taxable if items are modest and relevant to work identity.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee Items vs. Taxable Benefits
Swag needed for daily work is non-taxable. Luxury or personal items may be taxed as salary.
B2B Gifting & Marketing
Reasonably valued gifts tied to business aims are deductible. Promotional giveaways count as marketing expenses if documented.
Shipping & Customs
Within the EU: No customs duties.
Outside the EU: Duties + 21% VAT can apply above certain thresholds.
Monday Merch Warehouse: Duty-free shipping from Rotterdam to Latvia, with VAT compliance assistance.
Cultural & Eco Emphasis
Practical, modest items and eco-friendly packaging resonate well with Latvian recipients. Christmas is the main gifting season; small tokens also appear around name days or national events.
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.
Sources
State Revenue Service (VID) – Guidance on tax regulations, customs, and employer obligations.
Latvian Customs – Import rules, documentation, and thresholds.
Latvian Chamber of Commerce and Industry (LTRK) – Resources for local compliance and business support.
Disclaimer
This content is for informational purposes only and does not constitute legal or tax advice. Confirm specifics with Latvian authorities or a local tax expert to remain fully tax compliant.
