VAT services are one of our key focus areas, we provide daily value-added tax services as well as make complex tax issue examinations. The brief description of what we do in relation to value added tax is provided below.
We will help you to find an optimal VAT position for current or planned business activities. Our experienced and well-equipped specialists will assist you with VAT planning and compliance both internationally and locally.
The VAT compliance services typically include:
- VAT registration and de-registration
- preparation and submission of the VAT monthly, quarterly and annual VAT returns
- seeking a ruling or opinion of the State Revenue Service or Ministry of Finance with respect to VAT matters
- VAT day-to-day consultancy.
VAT consultations and planning
Whereas the tax laws are becoming more demanding, the planning of business involves more in-depth knowledge of the tax laws and practice. Our professionals are experienced so they can assist you to navigate through the complex tax and legal matters. Typically, we provide the VAT consulting services for the following:
- local and international VAT issues
- application of the VAT in mergers and acquisitions, e.g. sale of shares, the sale of a business as net assets
- application of VAT for holding companies, e.g. VAT recovery for management services supplied
- VAT implications of real estate transactions: sale/purchase, refurbishment, construction etc.
- VAT simplifications on international transactions:
- consignment/call-off stock
- importation in bonded warehouses,
- distance selling etc.
- VAT grouping
- Input VAT deduction
- application of VAT to financial services
- VAT litigation
- Training on VAT issues
- VAT reviews
Special VAT regimes
There are a few special VAT regimes available, which along with 0% corporate income tax makes Latvia attractive place for business:
- simplified import regime (applying 0% VAT on importation)
- VAT Mini one-stop shop (MOSS) regime
We provide assistance in planning and implementation of the special VAT regimes, as well as, to ensure VAT compliance.
Assistance in VAT audits and litigation
The VAT assessments account for 55% of all the tax assessments made by the State Revenue Service during the tax reviews. The most risky areas of transactions are the adjustment of the recovered input VAT for the purchases from doubtful suppliers and other cases, including the real estate transactions, and incorrect application of reduced rates or exemption from the VAT.
Our tax experts offer:
- assistance in the tax disputes with the State Revenue Service regarding the VAT issues, and
- appealing the decision of the State Revenue Service and representation in the court.
A VAT refund can be claimed by a VAT payer of another EU Member State who is not engaged in business in 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 the VAT payer’s own taxable transactions in the EU.
We assist in VAT refund as follows:
- review of the VAT payer’s entitlement for a refund and assistance during the VAT refund process
- consulting regarding the VAT rules and regulations
- VAT refund applications and documents
- liasoning with the Latvian State Revenue Service during the VAT refund process.
We will carry out the tax examination to find out the errors and omissions related to output and input VAT:
- recovery of input VAT
- verification of source documents
- verification of the VAT returns
- testing permanent establishment and the fixed establishment
- application of Latvian and foreign VAT.