[1] In 2023, a decade later, that number fell to 21.77%, as the economy of Latvia grew, the 2013 Latvian economic crisis came to an end, and trading expanded with other Baltic nations.
[8] Some goods and services are also exempt from VAT, this include education, medical care, financial transactions and rent.
Excise taxes apply on different luxury goods and things harmful to the environment.
[10] The fiscal system in Latvia in the early 1990s was similar to other former communist states with high public spending (45-50% GDP) and a tax system that relied on tax base definitions characteristic of central planning.
[11] Since then a long range of reforms has been made, including introducing VAT in 1992 and social security contributions.