Contracts & trade

The Latvian Traders Association has submitted to the Saeima's Economic Affairs Committee and the government a protest against the amendments to the Consumer Rights Protection Law promoted by the Ministry of Economics. The Association considers the penalty system – up to 4% of turnover or EUR 300,000 – disproportionate and criticises vague concepts ("reasonable price", "reasonable period" for repairs and spare parts) that create a risk of arbitrary application by the Consumer Rights Protection Centre (PTAC), as well as the liability of small distributors for goods from third-country manufacturers. The LTA proposes a fixed penalty cap of EUR 1,000 for small businesses and an "advise first" approach.

Tax consultant Karlīna Stāmere explains the application of VAT when a distributor hands goods over to a retailer for sale while retaining ownership (consignment). Referring to the State Revenue Service's binding ruling No. P005-17/8.6.4/17726 of 1 April 2026, it is noted that handing over goods with an accompanying document stating the possible selling price is not a VAT-taxable transaction – no tax is to be calculated at the time of handover and the retailer does not deduct input tax. The article is paywalled.

A digest of the Supreme Court Senate's August 2026 rulings in administrative cases: renting out residential property is not economic activity for real estate tax purposes (SKA-83/2026); a gambling licence cannot be restricted on the basis of general public disapproval without a justification tied to the specific location (SKA-57/2026); a court may order an authority to issue a corrected administrative act on real estate tax (SKA-83/2026); interim protection against a Competition Council order is permissible where compliance requires substantial system changes (SKA-734/2026); in an unregulated procurement the assessment of a bidder's reputation must be objectively justified (SKA-87/2026).

Lawyer Jānis Danga-Guobis (Leinonen) explains whether a separate contract must be concluded with a procurator (prokūrists). Under Section 34 of the Commercial Law, a procuration is a commercial authorisation to conclude transactions on behalf of the merchant, but the status of procurator itself does not impose an obligation to conclude a separate written contract – the procuration must be distinguished from the legal relationship underlying the procurator's actual duties, and the company may choose the most suitable model. The article is paywalled.

An e-consultation (in cooperation with the association "Mājoklis") explains whether, after the legislative amendments granting the community of apartment owners the right to open a bank account, the manager must re-sign all utility service contracts in the community's name. Automatic re-signing of contracts is not required: existing contracts in which the manager is named as the community's representative remain in force; new contracts must state the community's name and registration number. It is recommended to keep the community's funds in the community's account, with invoices naming the community as the contracting party and the manager as its representative; the manager's remuneration is income from their own economic activity, held in a separate account.

Kristīne Puķēna, senior lawyer at TEGOS, analyses companies' digital and organisational resilience in the context of the requirements of the National Cybersecurity Law, NIS2, DORA and the GDPR. The article stresses that the most common problems are unclear processes and undefined responsibility, so risk management, information protection and incident reporting procedures should be reviewed in calm times. In practical terms, it recommends putting contracts with service providers and subcontractors in order – roles, responsibility, service level (SLA) terms and incident response deadlines.

The State Revenue Service reminds that under Cabinet of Ministers Regulation No. 509 of 25 August 2026, issued on the basis of Section 8.6 of the Law on Support for Ukrainian Civilians, from 1 September 2026 until 30 June 2027 it is prohibited to import goods of Russian and Belarusian origin in seven chapters of the Combined Nomenclature: printed matter (49), knitted and other clothing (61, 62), made-up textile articles and used clothing (63), footwear (64), headgear (65), toys and sports equipment (95). The ban also applies to goods of these origins imported from third countries.

The Supreme Court Senate overturned a conviction and terminated criminal proceedings for misappropriation against a company's authorised representative who received goods from a German supplier but did not pay the invoice in full. As the parties had not agreed on the moment of transfer of ownership, German law applied, under which the goods became the buyer's property upon delivery – so the person was dealing with their own company's assets. A dispute over an unpaid invoice is to be resolved in civil proceedings, not criminal proceedings.

SIA "Alexela", a subsidiary of an Estonian energy company, has won the public procurement for the supply of electricity to the Saeima and the properties it manages for 24 months. According to the Electronic Procurement System, five bidders submitted offers; "Alexela" offered the lowest price – EUR 97.55 per megawatt-hour excluding VAT. The company was registered in Latvia in 2014 with share capital of EUR 562,800; last year its turnover was EUR 62.873 million and its profit EUR 180,197.

On 31 August the Official Gazette (Latvijas Vēstnesis, No. 166) published Cabinet of Ministers Regulation No. 509 of 25 August, which enters into force on 1 September and, on the basis of the Law on Support for Ukrainian Civilians, prohibits the import into Latvia of industrial goods of Russian and Belarusian origin – including when they are imported from other third countries. The ban covers seven groups of the Combined Nomenclature: printed matter (49), knitted and other clothing (61, 62), made-up textile articles (63), footwear (64), headgear (65) and toys and sports equipment (95).

The Cabinet approved rules banning, from 1 September 2026, imports of printed materials, clothing, footwear and toys originating in Russia and Belarus, including goods routed through third countries. The rules supplement existing EU sanctions and will be reviewed annually. Imports from these countries have fallen 91% since 2022.

The Cabinet decided that line ministries must, by 30 September, review planned and ongoing public procurements valued at 140,000 euros or more for supplies/services, or 1 million euros for construction. They must assess whether the procurement is necessary, whether supplier requirements are proportionate, and the risk of cost overruns. State-owned enterprise supervisors must complete their reviews by 1 September.

On 20 August, Prosecutor General Armīns Meisters petitioned the Constitutional Court over two Cabinet of Ministers protocol decisions that had instructed the Agriculture Ministry to adjust prices in long-term contracts between state forestry company "Latvijas valsts meži" and private timber buyers for softwood logs from 2024 onward. The Prosecutor General argues the government, without statutory authorisation, allowed state property to be sold below the prices set in existing civil contracts, in breach of the Constitution.

In an e-consultation on LV portāls, sworn advocate Santa Blumberga-Švēde answers whether two residential buildings on shared land can have separate utility contracts (water supply, waste removal), or whether the property must first be divided. The answer depends on the legal status of the buildings and land (co-ownership, separate apartment units, lease rights) and whether splitting services is practically feasible; she recommends consulting utility providers and possibly agreeing on a co-ownership usage arrangement.

The article explains that expenses incurred before a company's registration in the Commercial Register are initially covered by the founders from personal funds, since under the Commercial Law a company only becomes a legal entity upon registration. Invoices issued before registration are not automatically treated as the company's invoices, but after registration the company may reimburse justified formation costs if this is provided for in the founding documents. The author stresses that receipts alone are insufficient proof — it must be established who actually bears the costs and whether they directly relate to the company's formation.

On 13 August the Competition Council received a merger notification for SIA "Petrol Property" and AS "VIADA Baltija" acquiring control over the former "Circle K" franchise fuel station "Priežkalni 2" in Jumprava parish. KP will assess the deal's effect on the local fuel retail market; comments are invited until 31 August.

A "Jurista Vards" conversation with sworn advocate Katrine Plavina-Mika and procurement specialist Arija Vecmane discusses the decade's biggest reform of Latvia's public procurement rules, aimed at making the process faster and cheaper.

On 14 August the Competition Council received a merger notification from SIA "VITA mārkets" concerning lease rights to the former "Sky" store at Siguldas šoseja 8, Berģi, where an "ELVI" store is planned. A decision on approval is due within a month, and interested parties were invited to comment by 26 August.

Amendments to the Unfair Trading Practices Prohibition Law took effect on 19 August, requiring buyers to give suppliers at least 30 days' notice before delisting a product, introducing clearer rules for delivery forecasts, and limiting unilateral penalties where shortfalls stay within 10% of the forecast. Retailers must now pay for regular fresh vegetable and berry deliveries within 20 days. KP is urging market participants to review their cooperation agreements.

The Mere retail chain was shut down after Russian businessman Sergey Schneider, owner of the company managing Mere through Latprodukti LLC, was placed under the EU's 21st sanctions package. On 6 August Latvia's Financial Intelligence Unit issued a general administrative act allowing suppliers to reclaim goods held by sanctioned companies without a separate permit, coordinating with the Food and Veterinary Service and other agencies. Sanctions do not cancel the sanctioned companies' payment obligations to suppliers, but settlements must follow sanctions procedures.

Njord Law outlines what foreign construction companies must arrange before starting works in Latvia, including mandatory registration in the Construction Merchant Register and recognition of foreign specialists' professional qualifications. The piece also covers classification requirements for public projects, worker-posting rules, and tax considerations relevant to cross-border contractors.

On 7 August the Competition Council received a merger notification from SIA "AMIC Latvia" concerning the transfer of usage rights over its fuel stations and the Olaine oil depot currently leased to AS "VIADA Baltija". The notifying party states the parties' activities do not overlap and no affected markets arise. Comments are invited until 26 August.

The Competition Council has approved SIA "FIRMA MADARA 89" acquiring lease rights to the former "Sky" store premises at Kārļa Ulmaņa gatve 122, Riga, where a "top!" store will open. KP concluded the deal will not significantly affect competition in the everyday consumer goods retail market.

A construction-company executive warns that abnormally low bids accepted in public tenders threaten viable competitors' survival, since commissions rarely check whether a price covers real costs. He calls for cost justifications and complexity-scaled evaluation criteria rather than lowest-price-only awards.