LATVIA Trends and Developments Contributed by: Dr. iur. Viktorija Jarkina-Toča and Alisa Leškovica, RockBridge Legal
Where the value of the goods or services is below EUR10,000, the conduct may instead give rise to administrative liability. The maximum fine is EUR10,000 for a natural person and EUR30,000 for a legal person. The EUR10,000 threshold does not apply to particu - larly sensitive categories of goods, including strate - gically significant goods, firearms and their essential components, ammunition and technologies intended for military use. Violations involving such goods may therefore continue to result in criminal proceedings even where their value is below the general threshold. The State Revenue Service has also adopted internal penalty-setting guidelines under which the applicable range of administrative fines is determined primar - ily by the value of the sanctioned goods. Where the value of the goods is between EUR1 and EUR5,000, a legal entity may be fined between EUR10,000 and EUR20,000. Where the value is between EUR5,001 and EUR10,000, the applicable fine for a legal entity ranges from EUR20,005 to EUR30,000. The precise amount is determined on an individual basis, taking into account the circumstances and seriousness of the infringement, as well as mitigating and aggravat - ing factors. In practice, these cases frequently turn on the same complex issues as criminal sanctions cases. These include the correct customs classification of the goods, their technical characteristics, their actual des - tination and end use, the applicable exceptions under EU sanctions regulations, and whether the conduct amounts to a prohibited transaction or an attempt to circumvent sanctions. To strengthen the effective enforcement and recov - ery of administrative fines, particularly from foreign companies, further amendments to the Customs Law entered into force on 10 July 2026. A person who has failed to pay an administrative fine imposed for a customs or sanctions violation may now be prohib - ited from carrying out any customs-related activities requiring an EORI number until the fine has been paid. The restrictions also apply to carriers. A carrier that has failed to pay the relevant fine may be prohibited from transporting goods within Latvia. In practice, this may prevent goods from being released for a customs
procedure where the non-compliant carrier carries out the transport. These measures are expected to significantly improve the enforceability of administrative penalties against foreign declarants, importers, exporters, customs rep - resentatives and carriers that would otherwise have limited assets or presence in Latvia. They also cre - ate additional compliance risks for their contractual counterparties, whose customs operations may be disrupted due to an unpaid fine attributable to another participant in the supply chain. 3. Coercive measures proceedings Coercive measures proceedings in criminal proceed - ings in Latvia is not anything new. However, previously, coercive measures proceedings in sanctions violation criminal cases were not very active. This changed in 2026, and legal entities can face the same legal risks or even more than individuals committing or attempt - ing to commit a crime related to the violation of sanc - tions. Article 70.2 of the Criminal Law stipulates that the following coercive measures may be imposed on a legal entity: 1) liquidation; 2) restriction of rights; 3) confiscation of property; and 4) recovery of funds. 4. Criminal proceedings against tax evasion In Latvia, tax evasion and the avoidance of related payments remain pressing issues also in 2026. This is one of the most significant priorities in combating financial and economic crimes in the country. The tax sector is a crucial component of the economy, influ - encing the financial stability and growth of the state. Taxes are the primary source of state budget revenue; thus, tax evasion poses a threat to the national econ - omy and citizens’ well-being, undermining the busi - ness environment, as individuals engaging in these criminal activities find themselves in a more favourable position than those who pay taxes honestly. Despite strict criminal liability and prison sentences, in 2026, the number of criminal cases related to tax evasion remains very high. As for new trends in tax evasion criminal cases, what has changed is that external accountants are increas - ingly being suspected or accused in criminal proceed - ings of tax evasion together with business owners. One of the most relevant issues is the extent of the
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