Latvia: NACE 2.1 Business Activity Classification Update
Effective 1 January 2025, Latvia implemented the updated NACE 2.1 classification, expanding how economic activities are categorised across the EU. The State Revenue Service (SRS) requires all taxpayers engaged in commercial activity—including companies—to review and, where necessary, update their core business activity code under the revised system. Entities whose current NACE code is mapped to multiple new NACE 2.1 codes must notify the SRS. Notifications must be submitted no later than 20 January 2025. Joint stock companies may also need to reflect updated economic activity descriptions in their Articles of Association, although no specific statutory deadline is imposed for these amendments. The transition period runs until 1 May 2025.
Key changes and requirements
The introduction of NACE 2.1 affects all Latvian taxpayers carrying out commercial activity.
Where a previous NACE code corresponds to one new NACE 2.1 code, no SRS notification is required, as the update will be applied automatically.
Where a previous NACE code corresponds to two or more new codes, the entity must submit its updated core business activity through the SRS Electronic Declaration System (EDS) by the applicable deadline.
Non compliance may result in warnings and invitations from the SRS to remedy the omission. Continued failure may lead to stricter administrative penalties, including monetary fines or potential restrictions on holding board positions under Article 3(2) of the Law on Administrative Penalties for Offences in the Field of Administration, Public Order, and Use of the Official Language.
How can we help?
Computershare Governance Services global team of professionals are available to guide you through the required actions and assist with amending the articles as well as maintain your centralised entity information through the GEMS platform.
Contact
Please contact your dedicated Computershare Relationship Manager or send an email to #GLCGSGECNetworkManagement@computershare.com for more information about how Computershare may assist you in responding to these new requirements.
Disclaimer: This notice is provided by Computershare for general informational purposes only and is not intended and should not be construed as legal, regulatory, financial or tax advice. Computershare is not licensed or authorized to practice law in any jurisdictions and hence does not provide any legal advice and it does not hold itself out as doing so. Neither Computershare nor any of its affiliates or contributors accept any responsibility or liability for the quality, accuracy or completeness of any information contained in this notice. It is important that you seek independent professional advice relating to the subject matter of this notice before relying on it.