VAT Refund Procedures for the EU Companies in Latvia

VAT refunds to legal entities from other EU Member States in Latvia are contingent upon applications submitted in the Member State where the taxpayer operates. The VAT Law, effective from January 1, 2013, governs the VAT refund process. Detailed procedures are outlined in the Regulations of the Cabinet of Ministers.

Application Submission:

Foreign taxpayers without business operations in Latvia can seek a VAT refund by electronically submitting an application in the Member State where they conduct business.
This application is processed through the electronic platform designated by that specific Member State.

Eligibility Criteria:

VAT refund eligibility extends to taxpayers registered in another EU Member State, not involved in activities necessitating VAT registration in Latvia.
The refund pertains to VAT charged on goods acquired, services rendered, and imported goods intended for EU transactions.

Authorized Representative

An appointed representative may submit the VAT refund application on behalf of the taxpayer.
Authorization procedures must adhere to the national guidelines of the Member State where the taxpayer conducts business.

VAT Refund Criteria

Key criteria include registration in the VAT taxable persons register of another Member State.
Non-registration in the Latvian State Revenue Service’s VAT taxable persons register.
Non-engagement in activities in Latvia requiring registration.
Absence of taxable transactions in Latvia during the refunding period.

Application Submission Requirements

Information in the application, as well as additional details, must be presented in English or Latvian.
The application deadline is September 30 of the year following the refunding period.
Refund periods should align with specific criteria, not exceeding one calendar year or falling below three calendar months.

Minimum VAT Refund Amount

The claimed VAT refund must be in Euros. Minimum refund amounts apply based on the duration of the refunding period.

Documentation and Information Needed

The application necessitates details on each domestic invoice issued and those related to imported goods.
Business activities are described using NACE Revision 2 codes.
Electronic copies of invoices or importation documents are mandatory for specified threshold amounts.