When is Registration of VAT payers necessary for a person From Latvia?

VAT is one of the most important aspects of the company and every business needs to track it. There are some obligations When it is necessary to register as VAT payers in Latvia which any business should know.

 

When is it necessary for a person From Latvia?

If the company carries out transactions subject to value-added tax (VAT), the company must be registered in a VAT register.

If the amount of taxable transactions over the previous 12 months has exceeded EUR 40 000, and

the taxable person is required to register for VAT, then

by the 15th of the following month, an application must be submitted to the State Revenue Service (SRS).

Provides services to a person from another Member State of the European Union (EU) who has a VAT number or is carrying out an economic activity. The legislation provides for exemptions for certain types of services (eg educational services, freight transport services, real estate services).

Services are received from a VAT payer or economic operator in another EU Member State (exceptions are provided for certain types of services).

Receives services from a person who is not engaged in economic activities in Latvia (exceptions are also provided for certain services).

Purchases are made within the EU and the sum of the purchases (excluding VAT) per the calendar year is € 10,000 or more. There is also an exception and no obligation to register if, after one such purchase (€ 10,000 or more), goods worth more than € 10,000 are not expected to be purchased in the EU in the following calendar year. In this case, VAT of more than € 10,000 has to be calculated and paid into the state budget.

Exception:

If the taxable person has sold intangible assets or fixed assets once in the previous 12 months and such sales have resulted in more than EUR 40 000 for the relevant period, the taxable person shall be entitled not to be registered in the VAT register.

Also, you have the right not to register in the VAT register if, after one transaction, the registration threshold is exceeded and the taxpayer does not intend to carry out other taxable transactions over the next 12 months.