📊 VID

Micro-enterprise tax (MUN)

The micro-enterprise tax (MUN) is a simplified regime: you pay 25% of turnover (revenue with no expense deductions), and the rate covers both personal income tax and social contributions for the owner. The declaration is filed quarterly in the VID EDS system. If there is no turnover in a year, or the calculated tax is below 50 EUR, a minimum tax of 50 EUR applies. MUN suits service providers with low costs; for businesses with heavy material expenses the general regime is often better, since MUN is charged on turnover, not profit.

Service passportUpdated: 30.07.2026.

Cost

25% of turnover · minimum 50 EUR per year

Duration

Registration in EDS takes minutes

Deadline

Declaration by the 15th of the month after the quarter

Where

VID EDS (eds.vid.gov.lv)

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✓ Information verified: 2026-07-30 Report an error

Who this applies to

For an individual registering as economically active who wants simple taxation without complex bookkeeping — e.g. tradespeople, freelancers, service providers. You can choose MUN status when registering your activity in EDS or by filing a separate application. Note: 80% of the paid MUN goes to social contributions, so pensions and benefits will be lower than under the general regime; employees (if any) are taxed under general rules; above 50,000 EUR annual turnover you must register for VAT.

Step by step

Assess whether MUN pays off for you

MUN is charged on turnover, not profit. If your costs are low (services, consulting), 25% of turnover is often simpler and cheaper. If you buy materials or goods for resale, compare with the general regime — the effective MUN burden can be higher.

Register in EDS as a MUN payer

In EDS, register your economic activity and tick the option to become a micro-enterprise taxpayer in the registration form (or file a separate application). Filed by the 15th of the month, the status takes effect on the 1st of the next month; after the 15th — the month after that. Until then, general taxation applies.

File the quarterly declaration

The MUN declaration is filed only via EDS — by the 15th of the month after the quarter, and only for quarters with turnover. It shows turnover by month and the calculated tax (e.g. 3,000 EUR turnover → 750 EUR MUN).

Pay the tax and watch the thresholds

Pay the tax to the unified tax account after filing. Remember the 50 EUR annual minimum tax if turnover is absent or tiny, and the 50,000 EUR yearly VAT registration threshold. With prolonged zero turnover, MUN status is lost.

Common mistakes

Choosing MUN for a business with heavy material costs — the tax is on turnover, not profit, and the effective burden can exceed the general regime.

Forgetting that only 80% of MUN goes to social contributions — this directly reduces your future pension and benefits.

Missing the filing deadline — the declaration is due in EDS by the 15th of the month after the quarter.

Overlooking the VAT threshold — above 50,000 EUR annual turnover, VAT registration is mandatory.

Frequently asked questions

What is the MUN rate in 2026?

A single rate of 25% of turnover regardless of its size (since 1 January 2024, when the 40% band above 25,000 EUR was abolished). If the annual tax is below 50 EUR or there is no turnover, the 50 EUR minimum applies.

Can a MUN payer have employees?

Yes, but employees' wages are taxed under the general rules — full income tax and social contributions. The MUN rate covers taxes only for the owner.

Can MUN be combined with a salaried job?

Yes, you can hold a salaried job and pay MUN on your own activity in parallel. Your salary is taxed normally; MUN applies only to your business revenue.

What if there is no turnover for a long time?

With no turnover for several consecutive years, MUN status is lost (e.g. no turnover in 2024–2026 → status lost from 1 January 2027). The 50 EUR minimum tax is still due for a zero-turnover year.

Official sources

Verified against official sources · 30.07.2026.