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As of 1 January 2025, Latvia officially adopted NACE Revision 2.1 as the standard classification for economic activities. This new system replaces NACE Rev. 2 and applies to all companies and self-employed persons engaged in economic activity, regardless of their legal form or size.
The main activity code must now reflect the NACE Rev. 2.1 version registered with the State Revenue Service (VID). This classification is used by VID not just for statistical purposes, but also to determine tax status, licensing needs, and eligibility for public funding.
Who still needs to notify VID?
Although the official deadline to update your code with VID, 20 January 2025, has passed, businesses that haven’t done so must still act.
No notification is needed if the previously declared NACE Rev. 2 code automatically corresponds to a single NACE Rev. 2.1 code. In such cases, VID has already applied the change.
However, if the old code:
- No longer exists, or
- Has been split into several new options,
the business must manually select and submit the correct NACE Rev. 2.1 code in VID’s Electronic Declaration System (EDS). Submitting this correction now is essential to avoid compliance risks.
How to identify the correct NACE Rev. 2.1 Code?
To find the correct activity code:
- Use the official VID comparison table to see how your old code maps to NACE Rev. 2.1
- Choose the code that best reflects your current primary activity, based on turnover or workforce share
Under Rev. 2.1, you must now choose between content portals and platform services, depending on your actual business focus.
What if the Code is still wrong at VID?
If your registered activity code is outdated or incorrect, the consequences may include:
- Tax audits leading to rejected expenses if VID considers them unrelated to your declared activity.
- Input VAT deductions being disallowed for clients receiving invoices with mismatched codes.
- Ineligibility for grants or EU funding, due to a conflict between real activities and registered classification.
- Delays or rejections in public procurement procedures or licensing renewals.
How to submit the correct Code to VID now?
Companies that missed the January 2025 deadline can still submit their updated NACE Rev. 2.1 code through VID’s Electronic Declaration System (EDS). The system remains accessible, and corrections are accepted:
- Log in to EDS
- Go to Nodokļu maksātāja dati
- Select Saimnieciskās darbības veidi
- Click Edit and choose the correct NACE Rev. 2.1 code
- Set the start date
- Save and submit
If your activity is regulated, notify licensing authorities or relevant registers as needed. Also, ensure alignment with accountants and internal systems to avoid discrepancies in reporting or invoicing.
There is no fee and no documentation required. The update is processed directly in EDS, and making the correction now is both valid and recommended.
What about companies with several business activities?
If your company operates in multiple areas, you must register the main activity, the one that generates the most revenue or occupies the most resources. For example, if your company handles both warehousing and e-commerce, but e-commerce brings 70% of your income, you should register the corresponding NACE 2.1 code for online retail.
Secondary activities may be noted in internal documentation but are not required to be submitted unless specified by a sector-specific regulation.
What’s next?
Klea offers tailored solutions to streamline compliance and empower your business in Latvia. Book a demo today and unlock smarter corporate governance.
For more insights into processes in other jurisdictions, explore our article, CAEN Rev.3 in Romania: How and When to update your Company’s Activity Codes.
Legal Disclaimer
The information provided on Klea’s website is made available “as is” for informational purposes only. Klea does not provide legal, tax, or financial advice and is not responsible for any actions taken or not taken based on the content found on this website. In no event shall Klea be liable for any loss or damages arising from reliance on the information contained herein.
For specific legal or compliance support tailored to your business needs, please contact Klea directly. Our team provides personalized guidance and expert solutions. Any reliance on general content without direct consultation does not establish any legal responsibility or liability on Klea’s part.