Practical tips and up-to-date information on accounting, taxes and business in Latvia — from certified specialists.
An outsourcing invoice looks five times cheaper than an in-house accountant's salary — but that comparison is misleading. We break down both options down to the last euro, including hidden costs, and show when hiring in-house actually pays off.
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Most accounting mistakes at startups aren't deliberate schemes — they're misunderstandings, rushed decisions, and not knowing the rules. In 2026, with VID more technologically capable and tax regimes more complex, these mistakes cost even more. The ten we see most often — and how to avoid them.
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Your first employee changes almost everything: regular payroll, VSAOI, personal income tax filings, vacation, and sick leave all enter the picture. A complete guide through the process — from the decision to hire through the first day of work and beyond — with precise 2026 deadlines and rates.
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Almost every tax return and declaration in Latvia is filed through one system — VID's EDS. Since 2026 you can only log in with secure e-identification; usernames and passwords no longer work. A guide for anyone facing EDS for the first time — from logging in to your first filing.
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Every SIA owner eventually faces the same question: how do you pay yourself in a way that minimizes tax? We work through salary, the standard and alternative dividend regimes, and a hybrid strategy step by step — with precise 2026 figures.
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Missing a VID deadline isn't the end of the world, but it has a cost — and it grows every day. A guide to fixed penalties, late-payment interest, the 2026 change to how it's calculated, and what to do once a deadline is already behind you.
Read moreThe Balansis blog provides practical guidance for Latvian business owners and individuals on accounting, taxes and business management. All articles are written by certified accountants and tax consultants with hands-on experience serving Latvian companies.
Guides on bookkeeping, annual reports, accounting software, and obligations for SIA and sole trader owners in Latvia.
Explanations of VAT registration, personal income tax, corporate tax, VSAOI contributions, deadlines, penalties and VID requirements.
Advice on company formation, UR registration, employment law and managing a business in Latvia.
Salary calculations gross and net, employer costs, minimum wage, employee taxes and payroll bookkeeping.