New 10% beginner's micro-enterprise tax for small starters from April 2027

From 1 April 2027 a new simplified tax regime becomes available for the smallest businessesVID: the iesācēju mikrouzņēmumu nodoklis, a beginner's micro-enterprise tax levied at 10 per cent on the calendar-year turnover of a mazā saimnieciskā darbībaVID. The regime was introduced by amendments to the Mikrouzņēmumu nodokļa likums adopted on 17 September 2026 (2026/189.11)VID, together with related amendments to the personal income tax law (2026/189.7) and the taxes-and-duties law (2026/189.9), published in Latvijas Vēstnesis on 1 October 2026, and explained in a VID informatīvais materiāls dated 1 October 2026.

The regime is narrow by design. It is open to a natural person who sells goods or provides services only to private individuals buying outside any business activityVID, whose turnover does not exceed 12 000 euroVID, who is not VAT-registered (apart from special cross-border registration cases)VID, who employs nobody, and who conducts no other business activity at the same time. It is aimed at genuine starters: at the moment of registration the person must have no registered business activityVestnesis and must not have been registered as a business operator in the previous two calendar yearsVID.

Entry runs through the saimnieciskās darbības ieņēmumu konts. The person opens such an account with a provider offering the service and registers for the beginner's tax there; after receiving the information VID decides on registration as a small-business operator and beginner's-tax payer. All business income must then flow through the account, and the simplified payment solution computes and pays the tax automatically in line with a quarterly micro-enterprise declaration that VID prepares in EDS. If the taxpayer does not correct or file the declaration by the deadline, agreement with VID's prepared figures is assumed. Tax paid under the regime counts in full towards personal income tax.

The regime can be left at any time by closing the activity and the account, and during the calendar year the taxpayer may switch to the general regime or to ordinary micro-enterprise taxpayer status. A person who voluntarily ended the activity may re-enter in the same calendar year if total turnover for the year stays below 12 000 euro and the other conditions holdVID. Breach has teeth: the beginner's status is lost as of 31 December of the yearVID, an additional 15 per cent beginner's tax applies from the day the conditions were broken, computed by VID into the EDS quarterly declarationVestnesis, and a person who lost the status through non-compliance cannot re-enter for the next two tax periodsVID.

Anyone considering the regime should check the eligibility conditions — no registered activity at the moment of registration and none in the previous two calendar years — against their plans and, if eligible, arrange the income account with a provider offering the service. Legal basis: Grozījumi Mikrouzņēmumu nodokļa likumā (2026/189.11), which adds the beginner's-tax regimeVID, adopted 17 September 2026, in force 1 April 2027VID.