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Measures List
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Measure Name
Date when measure came into force
VAT rate reduction 2012/07/01
Cancellation of VAT deduction restrictions 2014/03/01
VAT deduction restrictions 2014/01/01
Provision for VAT taxable persons 2014/01/01
Results 1 - 4 of 4.

Generic Tax Name VAT
Tax name in the national language Pievienotās vērtības nodoklis
Tax name in English Value added tax
Member State LV-Latvia
Tax in force since 1992/10/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

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)

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

Not applicable.



Comments

 

 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments

Not applicable


Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 50,000.00  EUR/Natcur
Comments

Turnover threshold for SMEs 50,000 EUR.


Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
14.00 %
Flat rate compensation percentage for forestry:
Flat rate compensation percentage for fisheries:
Comments

The forestry is not subject to the flat-rate scheme for farmers.


There is a special scheme on the following





Comments

There is a special reverse charge scheme on transactions related to supply of timber, scrap metal and construction services.


Special derogations to continue to tax (annex X)




Comments

Special derogations to continue to exempt (annex X)













Comments


Comments

Persons liable to the value added tax are natural or legal persons or groups of persons who are bound by contract or agreement, or representatives of such groups, who are registered in the State Revenue Service  Value Added Tax Payers Register.

 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments

The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments


Comments

 

 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

VAT shall not be imposed on the following supplies of goods and services:
1) postal services, provided by universal postal service provider;
2) postage payment marks issued and sold in accordance with the Postal Services Law;
3) medical services and with medicine related services;
4) supplies of human organs, breast milk and human blood;
5) dental services;
6) services, provided by dental technicians and dental hygienists to patient;
7) services provided by cooperative societies to members of these cooperative societies if exemption do not create significant competition distortion;
8) social care, professional and social rehabilitation, social assistance and social work services which are provided by persons who are registered in the social service provider register;
9) fees for children attending pre-school institutions;
10) State approved educational services of institutions which provide general education, vocational education, high education and interest education;
11) educational services, which educational institutions ensure for other educational institutions;
12) private lessons provided by a teacher within the scope of the general education, vocational education and higher education teaching programmes;
13) carriage of schoolchildren that is conducted by carriers licensed specially for this purpose if these services are financed from local government budgets;
14) fees for professional training or retraining of the unemployed, which is organised by the State Employment Service;
15) the following cultural events – theatre and circus shows, concerts, performances for children, performances of amateur arts groups and for charitable purposes, activities of museums, exhibitions, zoos and botanical gardens;
16) remuneration received by the author for work and utilisation thereof, as well as remuneration received by a performer and a phonogram producer for neighbouring rights object and utilisation thereof;
17) supplies of gold, coins and bank notes to the Bank of Latvia;
18) insurance and re-insurance services provided by insurers and insurance agents;
19) the following financial transactions:

a) granting and control of credits and monetary loans;
b) services, which are related to the attraction of deposits and other refundable funds, the conduct of payments in cash and other than cash payments, and fiduciary (trust) operations;
c) services related to the issuing and servicing of instruments of payment, as well as trading in instruments of payment and other money market instruments, except instruments of payment supplied for collections or containing precious metals;
d) services (including intermediary), which are related to investments in capital and the holding, disposal and administration of securities, as well as the issuing of securities;

20) investment services which are related to the management of financial resources of investment funds, open pension funds and risk capital funds;
21) gambling, raffles and lotteries;
22) sale of real estate, except for the first sale of unused real estate and the sale of land for building;
23) payments by persons for:

a) the rent of residential premises;
b) the management services of a dwelling house,

24) the supply of services by independent groups of persons, who are carrying on an activity which is exempt from VAT or in relation to which they are not taxable persons, for the purpose of rendering their members the services directly necessary for the exercise of that activity, where those groups merely claim from their members exact reimbursement of their share of the joint expenses, provided that such exemption is not likely to cause distortion of competition.


Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

There is a special reverse charge scheme on transactions related to supply of timber in accordance with Article 395 of Directive 2006/112/EC.



Comments

 

 
Rate(s) Structure
Standard VAT rate Rate: 21.00 %
Comments

Tax rate is changed since 2012/07/01


Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 12.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

The reduced rate is aplicable only to the foodstuffs for infants.

The reduced rate is not aplicable to the pharmaceutical products for veterinary purposes, supply of children's seats, supply of brochures.

The reduced rate is aplicable only to the supply of educational literature editions, as well as original literature editions.

The reduced rate is aplicable to the newspapers, magazines, periodical publications issued not less freaquently than in 3 month and the circulation exceeds 100 copies, and licence fee (except erotic and comercial publications).

The reduced rate is aplicable only to the district heating to inhabitants for hosehold usage.



Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments

Not aplicable.


Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:No

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:Yes

The reduced rate is aplicable to the supplies of the following wood and firewood to inhabitants for household usage:
  a) in the form of billets, twigs, faggots or in similar forms,
  b) wood chips or particles,
  c) sawdust and firewood residues,
  d) sawdust and firewood residues in the form of agglomerated or non-agglomerated briquettes, granules or similar.



Comments
 
Tax due date

The tax calculated for a taxation period is paid within 20 days following the end of the relevant taxation period.

 
Tax collector

State Revenue Service.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,582.64 EUR 7.20
2011 1,367.52 EUR 6.79
2010 1,192.22 EUR 6.71
2009 1,109.22 EUR 5.92
2008 1,538.07 EUR 6.33
2007 1,733.24 EUR 7.66
2006 1,373.60 EUR 7.97
2005 1,011.18 EUR 7.38
2004 779.42 EUR 6.68
2003 719.75 EUR 6.88
2002 660.79 EUR 6.51
2001 626.37 EUR 6.69
2000 598.56 EUR 6.96
1999 502.22 EUR 7.13
1998 481.89 EUR 7.52
1997 440.68 EUR 7.67
1996 369.07 EUR 7.86
1995 349.33 EUR 8.45

Comments