For carpenters, electricians, renovation pros

You build — Vadi counts the materials and the taxes.

In construction and the trades, half the money goes into materials — lose the receipts and you're taxed on the full amount. Vadi captures receipts with your phone camera, issues invoices to clients and does the tax maths itself — from €9/month.

  • Receipts from the builders' merchant — scanned in 10 seconds
  • Tools as fixed assets with depreciation — a lower tax bill
  • Invoice a client from your phone — right there on site

7 days free no cardFrom €9/mo incl. VAT

Latviski

Carpenter working with wood and tools in a workshop

What a tradesperson needs to know about taxes

1

Register your economic activity with VID

Repairs, installation and other services for a fee are economic activity. Registration with the tax office (VID) is free, online via EDS; you can choose the general regime or the micro-enterprise tax (MUN).

2

Materials without a receipt = overpaid tax

Under the general regime tax is calculated on profit. If the material receipts are lost, in VID's eyes your profit is the entire income — and the tax is correspondingly higher. Every saved receipt is money.

3

The VAT threshold comes up fast

VAT registration is required when 12-month turnover reaches €50,000 — in construction, with expensive materials, that happens sooner than you'd think. Vadi tracks your turnover and warns you in time.

What Vadi does for you

You're on site — Vadi handles the paperwork in the background.

Scan receipts with your phone

Snap a photo of the receipt right at the builders' merchant — the amount, date and supplier fill in by themselves. The image is stored with the record in case VID asks.

Invoice clients from the site

Issue an invoice for labour and materials from your phone — a professional PDF with your business details. The system keeps track of which invoices are still unpaid.

Tools with depreciation

A saw, a drill, scaffolding or a trailer — register expensive equipment as a fixed asset, and Vadi calculates depreciation automatically, year after year.

Contributions & annual return

The quarterly social-contribution (VSAOI) report and the annual income declaration (D3) — computed from your records, ready to file in EDS. The calendar reminds you of deadlines.

MUN or the general regime

With big material costs the general regime almost always beats MUN. Compare both in the calculator with your own numbers.

How much of your work will go to taxes?

Enter your monthly income and material costs — the calculator shows the MUN and the general regime side by side, with real figures. No sign-up.

Open the calculator

Frequently asked questions

What taxes does a self-employed tradesperson or builder pay?

Under the general regime: social contributions (VSAOI) of 31.07% on a chosen base (at least the minimum wage of €780 if your monthly income reaches it) plus 10% for pension insurance on the excess, and in the annual declaration personal income tax (IIN) of 25.5% on profit after deducting paid VSAOI. The alternative is the micro-enterprise tax (MUN) of 25% of turnover — but then materials can't be deducted.

Do materials and tools lower my tax?

Yes — under the general regime materials, fuel to the site, small tools and workwear are business expenses deducted from income. Expensive equipment (over €1,000) is registered as a fixed asset and written off gradually through depreciation — Vadi calculates it for you.

I work for both private clients and companies — is there a difference?

For your bookkeeping, not much: in both cases you record the income and pay the same taxes on it. Companies usually want an invoice — Vadi issues one with your business details and tracks the payment. If you're VAT-registered and work with other VAT payers in construction, invoices follow a special VAT procedure — we recommend confirming the details with VID.

When do I have to register for VAT?

When your transactions total €50,000 over 12 months. In construction, where invoices often include materials, turnover grows fast — Vadi tracks it and warns you before the threshold is crossed.

How much does Vadi cost for a tradesperson?

From €9/month (incl. VAT) — income and expense tracking, invoices, VSAOI and income-tax calculations, the annual declaration and the tax calendar. The first 7 days are free and no card is required. Camera receipt scanning is on the Pro plan.

Vadi isn't only for tradespeople. The same system works for every self-employed person and company in Latvia.

Start today

Site paperwork done without an evening at the desk

Sign up and scan your first material receipt — Vadi shows how much to pay VID and when. No accountant.

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7 days free