VAT Latvia overview

Value-Added Tax (VAT) is a tax payable on consumer spending. Most goods and services supplied in Latvia are subject to VAT. Goods imported into Latvia from outside the European Union (EU) are also subject to VAT.

This manual explains the basic VAT issues:

• what a VAT payer is
• what are the VAT-taxable supplies
• VAT rates
• VAT payment schemes, etc.

The glossary of VAT terms is provided here.

If you have more in-depth questions or assistance with the VAT compliance in Latvia, please contact us +371 29274911 or e-mail: info@breicis.com.

VAT analysis decision tree

When analyzing a transaction the following five questions should be answered to understand whether the VAT is applicable and who applies it.

VAT payers

Inland VAT Latvia taxpayer:

• A registered taxpayer – a taxpayer that is registered in the SRS’s VAT payers’ register;
• An unregistered taxpayer – a taxpayer that, by using the rights set out in the VAT Law, has not registered in the SRS’s VAT payers’ register.

Taxpayer of another member state:

• A registered taxpayer of another member state – a taxpayer that, for the needs of paying taxes, is registered in the taxpayers’ register of another state;
• An unregistered taxpayer of another member state – a taxpayer that has not been registered in the taxpayer’s register of another state, and whose legal address is in another member state.

Taxpayer of the third countries or third areas:

• A taxpayer registered by third countries or third areas – a taxpayer that has been granted a taxpayer’s identification number or an equivalent number which, for the necessity of taxation, allows to identification of a taxpayer, and which has been granted by the country in which the taxpayer does business.;
• A taxpayer, who is not registered by third countries or third areas – a taxpayer that has not been granted a taxpayer’s ID number or an equivalent number which, for the necessity of taxation, allows to identification a taxpayer, and which is granted by the state, in which the taxpayer does business;

Fiscal representative

A fiscal representative is allowed to represent the foreign entity for several types of activities as set out by the VAT Act.

VAT group

A VAT group is a group of two or more legal entities which is established on the basis of a VAT-group agreement to carry out inter-group transactions, which meets the criteria defined in the VAT Act, and which is registered in the Register of VAT Taxable Persons.

VAT Latvia taxable transactions

The following transactions carried out inland within the scope of the economic activity are subject to the VAT:

• supply of goods (including supply of goods in the territory of the European Union and exportation of goods) for consideration;
• supply of services for consideration;
• acquisition of goods in the territory of the European Union for consideration.

Any importation of goods is subject to VAT unless explicitly stated otherwise by the VAT Act.

Acquisition of a new vehicle in the EU if carried out by a non-registered taxable person or a non-taxable person is also subject to VAT.

Supplies of new vehicles are carried out on an occasional basis, where the new vehicle is dispatched or transported to the purchaser by the seller, the purchaser, or by a third person on behalf of the seller or the purchaser, from inland to a destination outside inland but within the EU is also subject to VAT.

Place of Supply

Supply of Goods

Article 12 of the VAT Act

If the goods are dispatched or transported, the place of supply of goods (also for intra-community supplies) is the place where the goods are located at the time when the dispatch or transport of goods to the recipient of goods begins.

If the goods are not dispatched or transported, the place of supply of goods is the place where the goods are located at the time when the supply takes place.

If the goods dispatched or transported by the supplier of goods, or by the recipient of goods or by a third person are assembled or installed by the supplier of goods or by a third person on his behalf, the place of supply is the place where the goods are assembled or installed.

Supply of Services

Article 19 of the VAT Act

Special rules: Articles 20-30 of the VAT Act

Intra-Community supply of goods for consideration

A supply of goods for consideration in the territory of the European Union is defined as the delivery or transportation of movable property (a part of assets to be used in a business activity by a Latvian VAT trader) from Latvia to a destination in another EU State for the purposes of provision of its business activity, provided that such transfer is carried out by an inland taxable person or by another person on behalf of the trader (Article 8(1) of the VAT Act.

The following are exemptions from the above rule:

• the supply of goods intended for distance selling (Article 13 of the VAT Act)
• the supply of goods intended for installation or assembly provided that installation or assembly of such goods is carried out by a supplier or by another person on behalf of the supplier
• the supply of goods by the taxable person on board a ship, an aircraft or a train in the course of a passenger transport operation within the territory of the European Union
• the supply of gas to another Member State through the natural gas distribution system which is located in the territory of the European Union or any networks connected to such system, the supply of electricity, thermal energy or cooling energy through thermal energy or cooling networks
•  the supply of the goods referred to in Sections 43, 47, 48 and 50 of the VAT Act to which the 0% VAT rate is applied in the territory of the Member State where the dispatch or transport of such goods ends
• the supply of gold, coins and banknotes to central banks of the Member States
• the dispatch of goods to another Member State for the receipt of treatment, assessment, processing or repair services, if goods after receipt of the abovementioned services are returned to inland
• the dispatch of goods for temporary use within the territory of the destination Member State, which is related to services supplied by a taxable person conducting economic activity inland
• the dispatch of goods for temporary use, for a period not exceeding 24months, within the territory of the destination Member State, in which the importation of the same goods for the purpose of their temporary use would be covered by the arrangements for temporary importation with full exemption from customs payments.

If one of the conditions fails to comply, the goods are regarded as having been dispatched or transported to another Member State. A transaction is deemed to take place in the territory of the European Union at the time when that condition fails to comply.

The dispatch or transport of goods to another Member State in accordance with ARticle 45 (1)(2) of the VAT Act after their release for free circulation inland are treated as a supply of goods for consideration in the territory of the European Union.

VAT Latvia rates

The transactions taxable with a standard rate (21%) applies for the following transactions (as an example):

• Supply of goods and related transactions
• Provision of services and related transactions
• Import of goods
• Purchase of new vehicle made by any person within EU territory

Reduced rate (12%) applies for the following types of goods and transactions (as an example):

• Supply of pharmaceuticals and medical devices (their parts and accessories)
• Supply of specialized food products intended for infants
• Transportation services of passengers and luggage in Latvia
• Supply of study books and original literature books
• Supply of newspapers, journals and other periodicals
• Accommodation services
• Supply of thermal energy, wood and firewood to inhabitants for household consumption
• Import of specific goods and acquisition of such goods in the EU territory as stipulated by VAT Act

Reduced rate (5%) is applicable to the food products such as fresh fruits, berries, vegetables that are typical for Latvia.

Supply of goods and services for which the place of supply is deemed to be outside Latvia and if such supplies have been subject to VAT, if taken place in Latvia, are exempt with credit (entitling to recover input tax).

Zero-rated transactions (as an example):

• Export of goods and supplies of goods that are not released for free circulation within the customs warehouses and free zones
• Distribution of goods toa fiscal representative for further export
• Supplies of goods to a taxable recipient of other member state provided that goods are delivered to another EU member state
• Supply of new vehicle to any person of other member state
• Import of goods provided that certain permission is obtained
• Provided services, which are (as an example):
  • Directly relates to exports of goods, including such whose customs procedure started in another member state
  • Directly relates to transit traffic
  • Services in free zones and customs warehouses related to goods, that imported into the European Union from third countries or third territories and are not released for free circulation
  • International passenger traffic, as well as passengers traffic to other member states and brokerage services by selling these tickets, if passenger crosses the border of the Republic of Latvia, as well as luggage transportation, which the passenger carries with him, and transportation of the vehicle with which he travels
• Distribution and transport by ships and aircrafts, supply of spare parts and fuel to ships and aircraft
• Export of goods from Latvia to non-EU country

Following transactions are exempt from VAT, without entitlement to recover input tax (as an example):

• Postal services
• Medical services
• Mandatory health checks
• Dental care services, services provided by dental technicians and dental hygienists
• Social welfare, occupational and social rehabilitation, social assistance and social work services
• Services of state-accredited educational institutions
• Cultural events (theatre and circus, concerts, exhibitions for children, art events and charity events, visits to state-recognized museums, libraries, zoo and exhibitions)
• Insurance and reinsurance services
• Financial transactions (lending and loans; deals with loan guarantees; services related to deposits and current accounts, and the involvement of other repayable funds, cash and non-cash payments; and other)
• Gambling and lotteries
• Sale of used immovable property (specific rules applies)

Charging VAT

The VAT Act provides for both general and VAT reverse-charged payment arrangements for transactions between registered taxable persons domestically.

General VAT Latvia arrangements

The goods supplier (service provider) issues to the recipient of goods or services a VAT invoice, which should indicate:

• the value of the goods (services rendered) delivered;
• VAT rate of 21% calculated VAT amount;

The supplier reports the transaction value in the VAT return and the calculated VAT amount as the VAT payable to the state budget.Recipient of goods (services):

• pays the VAT invoice and VAT amount to the supplier of goods (service provider);
• if the purchased goods (services received) are intended to provide taxable transactions for the recipient of goods or services, the VAT amount indicated in the VAT invoice is included in the VAT return as deductible input tax. If the goods purchased (services received) are not intended to ensure the taxable transactions of the recipient of goods or services, the VAT amount indicated in the VAT invoice should be included in the VAT return as non-deductible input VAT.* In the case of general VAT arrangements, the recipient of the goods (services) may also be a non-taxable person who is not entitled to deduct input tax.

Reverse charge VAT Latvia

The VAT reverse charge payment procedure applies to some categories of goods or services specified in the VAT Act if the supplier of the goods (service provider) and the recipient of the goods / services are registered VAT payers and the transaction is done domestically, as follows:

• for the supply of timber and related services (Article 141 of the VAT Act) – from 1 July 1999
• the supply of scrap metal and related services (Article 143 of the VAT Act) – since 1 October  2011
• construction services (Article 142 of the VAT Act) – from January 1, 2012
• mobile phones, laptops, tablets and integrated circuit devices (Article 143.1 of the Value Added Tax Act) – since 1 April  2016
• a special tax regime for the supply of cereals and technical crops (Article 143.2 of the Value Added Tax Act) – from 1 July 2016
• special tax treatment for unprocessed precious metals, precious metal and supplies of precious metal clad with metals (Article 143.3 of the Value Added Tax Act) – since 1 January 2017
• for the supply of construction materials(Article 142 of the Value Added Tax Act) – since 1 January 2018
• the supply of metal products and related services (Article 143.4 of the VAT Act) – since 1 January 12018
• the supply of household electronic appliances and household electrical equipment (Article 143.5 of the VAT Act) – since 1 January 2018
• game console supplies (Article 143.1 of the VAT Act) – since January 1, 201

There are also two special payment methods for VAT:

VAT Special Treatment (MOSS) applicable to electronic communications, broadcasting and electronically supplied services. The special tax regime in import transactions – postponement of payment of the tax amount calculated in the state budget calculated in the customs declaration for goods entered in the tax declaration of the tax period corresponding to the tax declaration, see here.

VAT Mini One Stop Shop

The Mini One-Stop-Shop (MOSS Scheme) allows carrying out business activities in the EU countries without the need to register in each ot these countries for the following services:

• telecommunication services
• television and radio broadcasting services
• electronically supplied services

There are two types of schemes offered: those based within the EU (Union Scheme) and outside the EU (non-Union Scheme).

The below picture reflects the example of electronically supplied services. The Latvian company operates the trading platform through which the companies and private individuals are trading certain goods.

VAT MOSS regime example

On the left side there is a standard B2B service supplied to VAT payer, applying 0% VAT. On the rigth side the MOSS regime is applied , since there is a transaction with VAT non-payer. So in this case Latvian company charges 20% UK tax on the trading services.

VAT Latvia regime for import of goods

A VAT payer who has received a permit of the Tax authority may apply a special VAT regime to import transactions (import) of goods. The special regime means that the VAT payer calculates the VAT liability upon importation and within the same month recovers it as an input VAT, thus resulting in no actual cash payable on the importation. This is beneficial since the VAT payer should not tempory invest money upon the import of the goods.

The Tax authority, upon the submission of a registered trader, issue the permit provided that the following conditions are met:

• a trader has registered its business activity in Latvia (VAT payer)
• the trader is a registered user of the Electronic Declaration System (EDS) maintained by the State Revenue Service
• upon applying for a permit the trader does not have tax arrears, or the arrears are paid within 5 days after applying
• its employees who have the right to sign, are not convicted of criminal offences in the national economy;
• during the previous 12 months, the trader has submitted all the tax returns on time and provided that the additional information requested by the State Revenue Service is supplied on time as well.

Intra-Community transportation

Accounting for VAT

VAT chargeability

The VAT on goods or services supplied should be reported in the VAT return for the taxation period when the supply of goods or services was made and a tax invoice was issued. If a consideration has been received before the supply of goods or services, the VAT or the received part of consideration should be included in a tax return for the taxation period when the consideration was received in accordance with the tax invoice.

Tax for the supply of goods in the territory of the European Union should be included in a tax return of the taxation period when the supply of goods was performed and a tax invoice was issued.

The tax invoices should be issued within the time limits set below:

If a tax invoice is not issued on time, the VAT  for the supplies of goods or services supplied inland should be included in a VAT return of the taxation period when the supply of goods was performed or service was supplied and the time limit has expired.If a tax invoice is not issued until on time,, the supply of goods in the EU should be included in a tax return of the taxation period which follows the taxation period when the supply of goods in the EU was performed.The continous transactions are included in the tax return of the taxation period when a consideration was received or when the time period for which the invoice is issued ends, but not later than each 6 months.For the intercommunity supply, if the supply of goods performed countinueolsy over a continuous period of time in the territory of the European Union should be included in the tax return of each taxation period until the time when the transaction is completed.For the services considered as supplied in the EU, third country a taxpayer includes in the declaration in the tax period when the service has been supplied or the consideration received before the  services have been actually supplied.

When the goods and services are considered as supplied?

The goods are considered as supplied when the goods are physically delivered, but not later than when they are received by the recipient of goods. Where the goods are supplied permanently over a continuous time period (with the exception of the hire-purchase transactions) and tax invoices are issued at regularly, the tax point of the transaction is the end of the period, but not less than once in 6 months.Where the supply of goods within the territory of the EU takes place permanently over a continuous time period and exceeds one month, it the transaction is deemed to occur in the end of each calendar month until the supply of goods is completed. The intercommunity acquisition is deemed to take place at the time when the acquisition of goods has been physically made out, but not later than the time when the goods are received.Broadly, supply of service has taken place when the service is supplied to a recipient of the service, unless it is otherwise provided for in this Section.

The Receipt of a service has taken place, where the service is received. Where the service is supplied permanently over a continuous time period (with the exception of leasing of movable tangible property) and tax invoices are issued regularly, it should be deemed that the transaction has occurred at the end of the period, but not less than once in 6 months.

Triangulation 

Triangulation means the situation where a trader of the one EU State (e.g. Lithuania) sells goods to a trader of a second EU State (e.g. Latvia), who in turn sells the goods to a trader in a third EU State (e.g. Estonia). The first person physically delivers the goods to the end-repurchaser (i.e. Lithuania sends the goods directly to Estonia).

The triangulation can only apply when all the three traders are all registered for VAT each in its own EU State.

The Latvian VAT does not contain the term “triangulation”, however, the meaning of it is included in the Article 16(3). Under this Article the VAT is applicable in the EU State where the transportation of goods ends provided that:

• A VAT registered Latvian trader has acquired goods in the EU from a VAT registered trader of another Member State for the purpose of resale of such goods to a final purchaser in the territory of the EU which is considered as a place of acquisition of goods.
• A final purchaser of goods is a VAT registered trader person of another EU State and is liable for the VAT on such goods.
• A Latvian trader has reported this transaction in row ² (“Taxables supplies made in other countries”) of the VAT Act and Appendix PVN 2 “Pārskats par preču piegādēm un sniegtajiem pakalpojumiem Eiropas Savienības teritorijā” indicating in row “K” the code “S”.

Transfer of business

The transfer of business consisting of the assets and liabilities that forms together a joint ownership to the ownership or use by a new acquirer is not considered as a VAT taxable transaction, provided that (all below criteria are met):

• the net assets are sold for a consideration or without it or are contributed in the share Capital of the acquirer and
• acquirer is a legal successor of the rights and liabilities pertaining to this ownership and
• The acquirer continues to carry out business that is not related to the sale of the business or liquidation of it.

If, however, the acquirer fails to take over the rights and liabilities or it ceases the business activity, the assets and liabilities are considered as transferred each separately.

Consignment stock

A VAT trader from the EU Member country is entitled not to register with the State Revenue Service  as a VAT trader in Latvia, if it supplies stocks of production goods or stocks of wholesale goods to a Latvian VAT-registered trader, provided that in accordance with an agreement entered into between such traders, the ownership to the goods will be transferred to the Latvian VAT trader at a time when the goods are resold or consumed.iness purpose.

When the goods are consumed or resold by the Latvian trader, the purchase is considered as intra-Community acquisition. The Latvian trader will have to report the stock purchased when the goods are resold to the customers and ownership passes to the consignee. Such consignment stock could be maintained for up to 2 years.

Distance sale

The distance selling of goods is the supply of goods where a supplier or a third person on behalf of the supplier of goods dispatches goods from the one EU country to another, provided that the following conditions are met:

• the purchaser is non-registered taxable person, non-registered taxable person of another Member State or a non-taxable person;
• the goods supplied are neither new means of transport nor goods intended for assembly or installation;
• the total value (exclusive of tax) of the goods supplied in the previous or current calendar year has reached or exceeded the registration threshold (35 000 eur).

A taxable person of another EU trader should register with the State Revenue Service as a VAT payer:

• within 30 days from the time when the total value of supplies of goods in the previous or current calendar year has reached or exceeded EUR 35 000;
• prior to carrying out the transaction, if such goods are supplied which are subject to excise duty inland regardless of the value of the excisable goods supplied.

In transactions of distance selling of goods a taxable person of another Member State has the right to register with the State Revenue Service also prior to reaching the registration threshold.

Threshold for intra-Community acquisition

If the non-taxable person makes an acquisition of goods in the EU, the person is not obliged to register as a VAT payer until the 10 000 EUR threshold is reached (Article 34(11) of the VAT Act.)

VAT invoices

The VAT invoice should contain the following information:

• date of the invoice issue
• number of the one or several series on the tax invoice that identifies the uniqueness of the tax invoice;
• name of the supplier of goods or services (for an individual – name and surname) and legal address (for an individual – declared place of residence)
• registration number of the supplier of goods and services with the VAT payers’ registry of the State Revenue Service
• legal name of the recipient of goods or services (for an individual – name, surname) and legal address (for an individual – declared place of residence)
• registration number of the supplier of services or goods with the VAT payer registry of the State Revenue Service or the othe member state’s registry, provided that the taxpayer is registered with one of the above mentioned registries
• date of supply of goods or services, if it differs from the date when the tax invoice is issued, or date when the advance payment is received if this date is known and it differs from the date when the tax invoice is issued
• description, volume and  measurement units of the goods or services supplied
• price of the good or service supplied (including the price per unit)
• discount applied (provided that it has not been already applied to the value per unit)
• tax rate1
• tax amount calculated
• value of the transaction without the tax (value subject to VAT or exemption from it)
• if the tax invoice is issued according to the Article 130 of the VAT Act, e.g. the invoice is self-billed, the reference “pašaprēķins” (self-consumption) should be included
• if a zero-rated VAT or an exemption from VAT is applied to the supply of goods or services, a reference to the respective Article of the VAT Act, according to which the 0% VAT or exemption has been applied, or a reference to the respective Article of the EU Council’s 28 November 2006 Directive No. 2006/112/EK , or other reference having the legal grounds for application of the 0% VAT or an exemption from VAT
• if the recipient of the goods and services is responsible for VAT, a reference – “nodokļa apgrieztā maksāšana” (“reverse charge”)
• if a new transport vehicle is purchased, a reference to the information confirming that the vehicle is new (unused) according to the Article 1(9) of the VAT Act)
• if a special regime for the tax payment and input tax recovery is applied according to the Article 137 is applied, a reference “naudas līdzekļu uzskaite” (“VAT cash flow accounting”) should be included.
• if a special regime according to the Article 136 of the VAT Act is applied, a reference “peļņas daļas režīms ceļojumu aģentūrām” Profit margin scheme for tour operators”
• if a special regime according to the Article 138 of the VAT Act is applied, a reference “peļņas daļas režīms lietotām precēm” (‘“profit margin for second-hand goods”), “peļņas daļas režīms mākslas darbiem” (“profit margin for works of art”)  or“peļņas daļas režīms kolekciju priekšmetiem un senlietām” (“profit margin for collection items and antiques”)
• if the special rules according to the Articles  135., 139., 140.¹, 144. and 145. of the VAT Act are applied to the supply of goods or services, a reference to the respective Article, or a reference to the repective Article of the EU Counci’s 28 November 2006 Directive No. 2006/112/EK should be provided.
• if an authorized person is responsible for the tax payment, the VAT number, legal name (for an individual – name and surnam) and legal address (for an individual – declared place of residence) of the authorized person should be indicated.
• if a fiscal representatiee person is responsible for the tax payment, the VAT number, legal name (for an individual – name and surnam) and legal address (for an individual – declared place of residence) of the fiscal representative should be indicated.

VAT Latvia registration

Input VAT recovery

If the goods are acquired and services are received for ensuring the taxable transactions or for ensuring of such transactions carried out in other countries which should be taxable, if they were carried out inland, the input tax is:

• the VAT amount indicated on tax invoices received from other VAT payers for the goods acquired and services received;
• the tax amount paid for the importation of goods;
• the tax amount calculated in accordance with a special tax arrangement for transactions of importation of goods in accordance with customs clearance
• the calculated tax amount which is payable by a VAT payer in the taxation period as a recipient of service;
• the calculated tax amount from the acquisition of goods in the territory of the European Union;
• the calculated tax amount for the goods acquired in accordance with special regimes (reverse charge VAT) according to Articles 141, 142, 143, 143.¹, 143.², 143.³, 143.⁴ and 143.⁵ of the VAT Act
• the calculated tax amount for the services received in accordance with Articles 141, 142, 143 and 143.⁴ of the VAT Act
• the calculated or paid tax amounts for the goods acquired which have been issued as small value gifts or samples of goods.

Taxation period VAT Latvia

A taxation period is one calendar month if any of the following conditions is implemented:

• the value of taxable transactions performed by a registered taxable person in a pre-taxation year or taxation year exceeds EUR 40 000;
• a VAT trader person performs a zero-rated supply of goods in the territory of the European Union (Section 43 of the VAT Act).
• a VAT trader performs supply of goods in the territory of the European Union, participating in the supply of goods referred to in Section 16(4) of the VAT Act.
• a VAT trader supplies services, the place of supply of which is determined in accordance with Article 19(1) of the VAT Act (the place of supply is the address of the recipient.

VAT traders that do correspond to the above requirements are entitled to submit the quarterly returns.

VAT Latvia refund for the EU legal entities

General

For a VAT refund a foreign taxpayer who is not carrying out business in Latvia submits the electronic application for the VAT refund to Latvia in the Member State where the taxpayer carries out business and using the website established by that Member State. In accordance with Article 113(2) of the VAT Act and with Sections III, IV of the Regulations of Cabinet of Ministers No 1514 of 17 th of December 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”  (starting  1st of January 2014 ) the refund of VAT to Legal Entities of Member States of the European Union in Latvia is made in accordance with the application for the refund submitted in the Member State where the taxpayer does business and which is electronically send to the State Revenue Service from the competent tax authority of the other Member State.

Eligible persons

VAT refund can be claimed by a taxpayer registered in another Member State of the European Union who is not engaged in business that must be registered in the Republic of Latvia for the value-added tax which has been charged on goods acquired in the Republic of Latvia, services supplied and goods imported with the purpose of carrying out his own taxable transactions in the territory of the European Union.

Authorised representative

A VAT refund application may be also submitted by a taxpayer’s authorized representative, an individual or a legal person, acting on the basis of an authorization. As the VAT refund application is filed in the Member State where a taxpayer carries out business activity, the authorisation should be submitted in that Member State and in compliance with the national requirements of the Member State.

Criteria for VAT Latvia refund

The VAT taxable person meets the following criteria, it:

• has been registered in a VAT taxable persons register of another Member State
• has not been registered at the VAT taxable persons Register of the State Revenue Service
• has not been doing business that in accordance with existing legislation must be registered in Latvia
• has not been making taxable transactions in Latvia (has not supplied goods and services which could be regarded as supplied in the Republic of Latvia), requiring the registration in the Register of VAT taxable persons at the State Revenue Service.

Requirements for submitting of the VAT refund application:

• the information included in the application form and the additional information must be in English or Latvian;
• the application must be filed by a specific date, i.e. no later than by 30th of September of the calendary year following the refunding period. If the specific date has been exceeded, the application is disregarded and the tax is not refunded;
• the refund period indicated in the application should not exceed one calendar year and should not be less than three calendar months;
• the refund period indicated in the application can be less than three calendar months if it relates to the last months of the calendar year;
• the amount of the claimed VAT refund must be indicated in national currency of the Republic of Latvia EUR (2014);
• the amount of claimed tax refund cannot be less than EUR 400, if the refunding period is shorter than one calendary year but is not shorter than three months;
• the amount of claimed tax refund indicated in the application must not be less than EUR 50, if the refunding period is one calendary year or last months of the calendary year;
• the application must contain information related to every invoice issued in domestic territory or related to every document proving importation on goods made in the domestic territory;
• the description of taxpayer’s business activities shall be notified using statistical classification of economic activities NACE Revision 2 codes provided for by Council Regulation (EC) of 20 December 2006 Nr. 1893/2006;
• an electronic copy of tax invoice or importation document must be attached to the application in cases where the taxable amount indicated in the tax invoice or importation document amounts to or exceeds EUR 1 000. If the invoice refers to fuel then the threshold is EUR 250;
• additional electronically coded information (subcodes) must be submitted in relation with the following codes of goods and received services (pleae refer to the tax authority website for more information https://www.vid.gov.lv/lv/node/56980:
  • Fuel
  • Hiring of vehicles
  • Vehicle expenditures
  • Road tolls and charges
  • Transport expenses, such as taxi and public transport fares
  • Accommodation in guest accommodation dwellings
  • Food, drink and restaurant services
  • Admision to fairs and exhibitions
  • Expenditure on luxuries, amusements and entertainment
  • other.