Is fiscal representative compulsory in Latvia ?
Latvia is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is not compulsory.
Latvia no REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Latvia is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (PVN) provided by in Latvia like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Latvia and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Latvia to another State, being third country or Member state.
In most cases your VAT number in Latvia will be similar to LV12345678901.
What is the threshold for deliveries to particulars individuals in Latvia ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :EUR 35,000
EUR 10,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Latvia ?
Standard VAT rate in Latvia is 21%, while intermediate rate is -. On the other hand, reduced rate is 12% % and 5%.
Application of Article 37 and 109 to 122 of the VAT Directive in Latvia : zero-rated; exempt
Please note that we open access to a detailed table of VAT rates per goods and services in Latvia :
See our section https://becompliant.tax/vat-rates-latvia
What is the scope of a fiscal representative in Latvia?
Fiscal representative should always diagnose your operations in Latvia and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Latvia ?
Your fiscal representative in Latvia will have to submit periodically on your behalf.
The VAT form you are expected to submit in Latvia : PVN
In Latvia, the periodicity of VAT (locally called Pievienotās vertības nodoklis) is as follows :
Monthly VAT returns in Latvia are due 20th of following month, always that Default
Your VAT payment is due : Same as return.
Semesterly VAT returns in Latvia are due 20th of following month, always that Available from PVN4
Your VAT payment is due : 1st of May.
Yearly VAT returns in Latvia are due 20th of following month.
What are the E/ICSL a fiscal representative submits in Latvia ?
The ECSL you are expected to submit in Latvia : PVN 2 (20th of following month)
Your statistical declarations (Intrastat) in Latvia : Declaration (10th of following month)
What are the late registration penalties in Latvia ?
An administrative penalty for the non-submission of a VAT return is payable to the state budget in an amount ranging from EUR70 to EUR700. In addition, the tax authorities can exclude the taxpayer from the registry of VAT-taxable persons.
Also, penalties may be imposed for undeclared VAT. In such case, the undeclared VAT must be paid, together with a penalty of up to 30% of the unpaid VAT amount and a late penalty fine in the amount of 0.05% per day.
A penalty for late VAT payment is imposed in the amount of 0.05% per day.
Where to find official information about VAT in Latvia
Latvia transposed the European Directive into national regulation Law “On Turnover Tax” (in force from October 1, 1992 till April 30, 1995)
Law “On Value Added Tax” (in force from May 1, 1995 till December 31, 2012)
Value Added Tax Law (in force from January 1, 2013).
The Revenue administration responsible for VAT in Latvia is :
State Revenue Service
VAT and INTRASTAT compliance in Latvia
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