VAT Registration in Latvia – Get Help from Our Latvian lawyers
VAT Registration in LatviaUpdated on Monday 08th August 2022
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Economic operators are required to register for VAT in Latvia, in accordance with the local legislation. The registration procedure can be completed on a voluntary or mandatory basis.
For more information regarding obtaining a Latvian VAT number, you are welcome to get in touch with our lawyers. Our Latvian lawyers will provide you with comprehensive guidance in this regard.
Registration for VAT in Latvia
Latvian companies are required to register for VAT if during the last year the taxable products and services have brought the company earnings that exceed the 35,000 LVL (50,000 euros) threshold. If its earnings have not exceeded this threshold, VAT registration remains optional. In case the company supplies goods or services to an EU state, the company is required to register for VAT before the transaction is concluded.
Foreign companies are required to register for VAT in Latvia if they provide taxable goods or services. The registration can be made directly or through a representative. Companies that are not registered for VAT in Latvia but make distant sales and the value of the sold products or services exceed the threshold of 24,000 LVL (34,000 euros) must also register for VAT with the Latvian authorities. If a company does not register for VAT in time, it must pay the VAT for all taxable goods and products made during the period it was not registered plus the calculated penalties.
For any further details regarding VAT registration in Latvia, you can get help from our Latvian lawyers. Besides VAT registration in Latvia, our lawyers can also assist you if you are planning to apply for residence in this country. Our immigration lawyers in Latvia will describe to you the criteria regarding acquiring residency.
Latvian law on the VAT registration procedure
The value-added tax in Latvia is applied according to the Value Added Tax Act to any goods and services. VAT is paid by every registered taxpayer and goes into the Latvian state budget. Latvia has double taxation agreements with more than 50 states to avoid double taxation.
As per the provisions of VAT law in Latvia:
- One of the following people may register with the VAT Payer Register of the State Revenue Service (SRS) if the taxpayer of another Member State conducts at least one taxable transaction on the domestic territory: taxpayer from a different Member State; or the taxpayer's authorized representative in their own country;
- Regardless of the value of the assembled or installed goods, the taxpayer from another Member State must register at the SRS VAT Payer Register before carrying out the transaction if they are supplying goods to a non-taxpayer or a non-registered taxpayer and the goods are assembled or installed on the domestic territory;
- Before engaging in such supply of goods or services in the domestic territory, the permanent establishment of the VAT payer of another Member State must first register at the SRS VAT Payer Register;
- When purchasing products through distance sales, the taxpayer from another Member State registers with the SRS VAT Payer Register: before completing the transaction if goods are supplied to which excise duty is applied in the domestic territory, regardless of the value of supplied excise goods, and within 30 days of the moment when the total value of the supplies of goods in the preceding or current year has achieved or exceeded 10,000 EUR;
- A VAT payer from another Member State has the option of not registering with the SRS VAT Payer Register.
If you are seeking any additional information regarding the Latvian VAT number, you can get the legal services of our lawyers. Our Latvian lawyers will not only help you with the VAT but also help you to get VAT registration in Latvia.
We can also assist in immigration to Lativa.
VAT refund in Latvia
According to EU Council Directive 2008/9/EC of February 12, 2008, which lays out new guidelines for the return of value-added tax (VAT) to taxpayers who do not conduct business in the Member State of refund, the process for VAT refunds in the European Union (EU) will alter as of January 1, 2010. By applying to the State Revenue Service of the Republic of Latvia via the Electronic Declaration System, taxpayers from Latvia who are not conducting business in the other Member State must address an electronic reimbursement request to that Member State under the new method (EDS).
According to Section II of the Cabinet of Ministers Regulation No. 1514 of December 17, 2013, "Procedure of Application for the Refund of VAT in Other Member State of the European Union and the Procedure of Refunding the Value Added Tax to a Taxable Person Established in Other Member State of the European Union," taxpayers of Latvia submit requests for VAT refunds to the appropriate authorities of other Member States. The State Revenue Service must receive the reimbursement application no later than September 30 of the year after the refunding period.
For any further information about VAT refunds in Latvia, you can get help from our lawyers. Besides these services, our lawyers can also assist you if you need any kind of information about the Latvia VAT number.
Application procedure for VAT refund in Latvia
The Latvian taxpayer must be a registered EDS user to submit a VAT refund application addressed to another Member State; to complete the refund application form, the EDS user selects the document "VAT refund application" from the document group "Outgoing Documents for VAT Refund in the European Union" and enters data following the criteria specified by the EDS; The application for a VAT refund can be submitted on behalf of a Latvian taxpayer by an authorized person who may be a taxpayer registered in the Republic of Latvia, or his representative in this country. After being filled out, the document must be signed following the general requirements of the EDS.
Besides, submitting a refund application on your own, you can also rely on our lawyers for this purpose. Our immigration lawyers in Latvia can further provide you with legal services if you are interested in applying for citizenship in this country.
VAT exemption in Latvia
Banking and financial services, as well as transactions with shares and securities, are exempt from VAT in Latvia. Other services exempt from VAT are social security services, medical care, education services, and real estate services such as leasing, gambling, and postal services.
If you are seeking information regarding the Latvia VAT number, you can get help from our lawyers. Furthermore, if you are planning to relocate to Latvia, our immigration lawyers are at your disposal. They can practically assist you throughout the process immigration to Latvia.
The VAT rates in Latvia
The VAT rates in Latvia are provided below:
- The standard VAT rate in Latvia is 21% starting July 2012;
- There is also a reduced VAT rate of 12% that applies to pharmaceutical products and medical equipment, dairy products, transportation, tourism facilities, and delivery of heating products such as wood, and literary works;
- A 0% tax rate applies to import and export supplies within the Community, services related to imports and exports of intra-community products, international transport of supplies and passengers, goods and services for diplomatic missions, European institutions, and international and non-profit organizations.
Contact our attorneys if you want information about the Latvian VAT number. They can provide you with detailed assistance in this matter. In addition to this, if you are planning to relocate to this country and open a firm, it is advisable to get help from legal persons. The knowledgeable lawyers at our law firm in Latvia can help you open a firm in this country.