The translation of this document is outdated.
Translation validity: 07.03.2022.–31.12.2023.
Amendments not included:
09.11.2023.,
07.12.2023.
Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
24 January 2013 [shall come
into force on 21 February 2013];
19 September 2013 [shall come into force on 1 January
2014];
6 November 2013 [shall come into force on 1 January
2014];
21 November 2013 [shall come into force on 1 January
2014];
12 June 2014 [shall come into force on 1 October
2014];
19 February 2015 [shall come into force on 15 March
2015];
30 November 2015 [shall come into force on 1 January
2016];
17 December 2015 [shall come into force on 6 January
2016];
16 June 2016 [shall come into force on 1 July
2016];
23 November 2016 [shall come into force on 1 January
2017];
20 April 2017 [shall come into force on 1 June
2017];
27 July 2017 [shall come into force on 1 January
2018];
22 November 2017 [shall come into force on 1 January
2018];
30 May 2019 [shall come into force on 1 July 2019];
20 June 2019 [shall come into force on 12 July
2019];
28 November 2019 [shall come into force on 1 January
2020];
24 November 2020 [shall come into force on 1 January
2021];
7 January 2021 [shall come into force on 9 January
2021];
15 November 2021 [shall come into force on 1 January
2022];
9 December 2021 [shall come into force on 1 January
2022];
10 February 2022 [shall come into force on 7 March
2022].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima1 has adopted
and the President has proclaimed the following law:
Value Added Tax
Law
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) building land - a plot of land regarding which a
construction permit for building thereon or for the construction
of engineering communications therein, or for the construction of
roads, streets or engineering communications input scheme
intended for it has been issued after 31 December 2009. The plot
of land shall not be deemed a building land if the construction
permit for construction works has been issued:
a) until 31 December 2009 and has been extended or
re-registered after 31 December 2009;
b) after 31 December 2009, but the purpose for the use of the
plot of land has been changed and does not provide for building
thereon;
2) consideration - the monetary value of goods or
services which is received by a supplier of goods or services or
which it should have received from a recipient of goods or
services or another person as payment for the supply of goods or
services without value added tax (hereinafter - the tax),
irrespective of whether the payment is made in full or
partially;
3) territory of a Member State - the territory of a
certain European Union Member State (hereinafter - the Member
State) to which Article 52 of the Treaty on European Union and
Article 355 of the Treaty on the Functioning of the European
Union is applicable, with the exception of third territories, and
also the Principality of Monaco and the United Kingdom Sovereign
Base Areas of Akrotiri and Dhekelia which for the purpose of tax
application are regarded as territories of France or Cyprus
respectively;
4) territory of the European Union - the aggregate of
the territories of the Member States;
41) electronically supplied services - the
services referred to in Article 7 of Council Implementing
Regulation (EU) No 282/2011 of 15 March 2011 laying down
implementing measures for Directive 2006/112/EC on the common
system of value added tax (recast), including:
a) website supply, web-hosting, distance maintenance of
programmes and equipment;
b) supply of software and updating thereof;
c) supply of images, text and information and making available
of databases;
d) supply of music, films and games, including games of chance
and gambling games, and of political, cultural, artistic,
sporting, scientific and entertainment broadcasts and events;
e) supply of distance teaching;
5) fiscal representative - a registered taxable person
which on the basis of a written contract pays the tax into the
State budget and represents a taxable person of another Member
State or a taxable person of a third country or third territory
(also conforming to the laws and regulations governing the excise
duty and the circulation of excisable goods in respect of
excisable goods) in the following transactions:
a) when carrying out importation with subsequent supply of
such goods to a registered taxable person of another Member
State;
b) when carrying out importation with subsequent supply of
such goods inland;
c) when receiving goods inland, if such goods are received for
the purpose of further exportation and are located in a place
specified in the laws and regulations in the field of customs or
in an excise duty warehouse, and when carrying out further
exportation of such goods;
d) when carrying out acquisition of goods in the territory of
the European Union, if such goods are acquired for the purpose of
further exportation and are located in a place specified in the
laws and regulations in the field of customs or in an excise duty
warehouse, and when carrying out further exportation of such
goods;
e) when carrying out acquisition of goods in the territory of
the European Union, if such goods are actually received inland
for the purpose of supplying them to another Member State;
6) inland - the territory of the Republic of
Latvia;
7) auction price - the value which in accordance with
the Civil Procedure Law conforms to full price bid at an auction,
the highest price bid at an auction or the initial auction price
in cases when the auction is announced as not having taken
place;
8) special tax arrangement for transactions of importation
of goods - suspending of the tax amount payable into the
State budget for the performed importation of goods which has
been calculated in the customs declaration until indication of
such sum in the tax return for the relevant taxation period;
9) new means of transport:
a) a motorised land vehicle the capacity of which exceeds 48
cubic centimetres or the power of which exceeds 7.2 kilowatts and
which is intended for the transport of passengers or goods, if it
has been used for less than six months or has travelled less than
6000 kilometres;
b) a vessel or other floating craft exceeding 7.5 metres in
length and intended for the transport of passengers or goods if
it has been used for less than three months or has sailed less
than 100 hours, except for the vessels referred to in Section 47,
Paragraph one of this Law;
c) an aircraft the take-off weight of which exceeds 1550
kilograms and which is intended for the transport of passengers
or goods if it has been used for less than three months or has
flown less than 40 hours, except for the aircraft referred to in
Section 48, Paragraph one of this Law;
10) gift of small value - goods or services which are
given without consideration and the value of which without the
tax does not exceed EUR 15.00 during a calendar year per one
person, except for goods or services related to advertising or
representation expenses;
11) seat - legal address of a non-taxable person or
address similar to the legal address in accordance with the laws
and regulations of another country;
12) unused immovable property:
a) a newly built building or structure (also stationary
equipment installed therein), or a part thereof, if it is not
used after being accepted for service, and a land parcel or a
part of a land parcel related thereto;
b) a newly built building or structure (also stationary
equipment installed therein), or a part thereof, if such is used
and sold for the first time within one year after being accepted
for service, and a land parcel or a part of a land parcel related
thereto;
c) a building or structure, or a part thereof, if after
renewal, rebuilding or restoration works have been completed it
is not being used, and a land parcel or a part of a land parcel
related thereto;
d) a building or structure, or a part thereof, if after
renewal, rebuilding or restoration works have been completed it
is being used and sold for the first time within one year after
being accepted for service, and a land parcel or a part of a land
parcel related thereto;
e) an object of uncompleted construction or a part thereof - a
building or structure, or a part thereof, if such building or
structure has not been accepted for service, and a land parcel or
a part of a land parcel related thereto;
f) a building or structure, or a part thereof, if such
building or structure is being renewed, rebuilt or restored, but
it has not been accepted for service yet, and a land parcel or a
part of a land parcel related thereto;
13) hire purchase - a supply of goods in which the
supplier of goods according to a concluded hire purchase contract
supplies particular goods which are transferred into the
ownership of the recipient of goods within the time period laid
down in the contract after all the payments laid down in the
contract have been made;
14) supply of services - a transaction which does not
constitute the supply of goods; the following shall also be
considered the supply of services:
a) the selling (transfer) of intangible property (intangible
values and rights);
b) the obligation to refrain from some activity or action or
to allow some activity or action;
c) the leasing of property;
d) the performance of construction work;
15) fixed establishment - any place other than a place
of establishment of a business of a person which is characterised
by a sufficient degree of permanence and suitable structure in
terms of human and technical resources enabling to ensure
services provided thereby or to receive and use services which
are provided for the needs of such fixed establishment;
16) VAT group - a group of two or more taxable persons
which conforms to the conditions of this Law, has been
established on the basis of a memorandum of association of the
VAT group for carrying out mutual transactions inland and has
been registered in the State Revenue Service Value Added Tax
Taxable Persons Register;
17) exportation of goods - supply of goods from the
territory of the European Union to third countries or third
territories;
18) acquisition of goods in the territory of the European
Union - obtaining of the right to dispose of property as
owner if the dispatch or transportation of the property from one
Member State to another Member State is carried out by the
supplier of goods or receiver of the goods, or a third person on
behalf of the supplier or recipient of goods;
19) importation of goods - the entry into the territory
of the European Union of goods from third countries or third
territories by releasing them for free circulation;
20) supply of goods - a transaction which is manifested
as the transfer of the ownership rights of a property to another
person, so that this person could act with the property; the
transactions with the following shall also be regarded as the
supply of goods:
a) with immovable property or a part thereof;
b) with electricity, gas, thermal energy, heating, water,
steam and cooling energy;
21) supply of goods in the territory of the European Union
- the supply of goods if the goods are dispatched or
transported from one Member State to another Member State and the
dispatch or transportation of such goods is carried out by the
supplier or recipient of the goods, or a third person on behalf
of the supplier or recipient of the goods;
22) goods transport service in the territory of the
European Union - goods transport service if the place of
departure of transport of goods and the place of arrival of
transport of goods are situated in two different Member States;
if the place of departure and the place of arrival are situated
within the territory of the same Member State, the transport of
goods shall be treated as a stage of the goods transport service
in the territory of the European Union, if such transport is a
part of the transport service the place of departure and the
place of arrival of which are situated in the territories of two
different Member States;
23) place of arrival of transport of goods - the place
where the transport of the goods actually ends;
24) place of departure of transport of goods - the
place where the transport of the goods actually begins;
241) broadcasting services - the
broadcasting services referred to in Article 6.b of Council
Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying
down implementing measures for Directive 2006/112/EC on the
common system of value added tax (recast) (in the wording of
Council Implementing Regulation (EU) No 1042/2013 of 7 October
2013 amending Implementing Regulation (EU) No 282/2011 as regards
the place of supply of services);
25) place of establishment of a business - the basic
place of performing economic activity of a taxable person where
the management of the aforementioned taxable person is located
and where the main administrative decisions related to the
performance of economic activity are taken;
26) intermediary - a taxable person who participates in
the supply of services or in the supply of goods without becoming
the owner of such goods or actual provider of services, in order
to pursue the interests of other persons in transactions of the
supply of goods or the supply of services. An intermediary shall
issue a tax invoice and receive consideration only for an
intermediary service provided by him;
27) market value - consideration for goods or services
which at the time of supply would have to be paid by the
recipient of the relevant goods or services, under conditions of
fair competition, to another supplier who is not considered a
related party within the meaning of the law On Taxes and Fees.
Where no comparable price for goods or services can be
ascertained, market value shall mean:
a) in respect of goods - an amount which is not less than the
purchase price of the relevant goods or of similar goods or, in
the absence of a purchase price, the cost price, determined at
the time of supply;
b) in respect of services - an amount that is not less than
the full cost of providing the service;
28) third territories:
a) such territories of the European Union which form part of
the customs territory of the European Union - Mount Athos, the
Canary Islands, the French territories referred to in Article 349
and Article 355(1) of the Treaty on the Functioning of the
European Union, the Åland Islands, Campione d'Italia, the Italian
waters of Lake Lugano;
b) such territories of the European Union which do not form
part of the customs territory of the European Union - the Island
of Heligoland, the territory of Büsingen, Ceuta, Melilla,
Livigno;
29) third countries - such countries or territories to
which the Treaty on European Union and the Treaty on the
Functioning of the European Union are not applicable;
30) electronic communications services - the services
referred to in Article 6.a of Council Implementing Regulation
(EU) No 282/2011 of 15 March 2011 laying down implementing
measures for Directive 2006/112/EC on the common system of value
added tax (recast) (in the wording of Council Implementing
Regulation (EU) No 1042/2013 of 7 October 2013 amending
Implementing Regulation (EU) No 282/2011 as regards the place of
supply of services);
31) multi-purpose voucher - a voucher upon the issue
whereof none of the characteristics of a single-purpose voucher
laid down in this Law are known;
32) voucher - an instrument which must be accepted as
consideration or part consideration for a supply of goods or
services and where the goods or services to be supplied or the
identities of their potential suppliers are either indicated on
the instrument itself or in related documentation, including the
terms and conditions for the use of such instrument;
33) single-purpose voucher - a voucher upon the issue
whereof the place of supply of the goods or services to which the
voucher relates and also the tax due on those goods or services
are known.
[19 September 2013; 6 November 2013; 12 June 2014; 19
February 2015; 23 November 2016; 20 April 2017; 30 May 2019; 28
November 2019; 10 February 2022]
Section 2. Scope of Application of
this Law
This Law prescribes the taxable persons, the taxable
transactions and taxable value thereof, the place of supply of
goods and provision of services, the tax rates and exemptions
from tax, the requirements for tax payment and administration,
the procedures for the payment of tax into the State budget, the
provisions for the deduction of input tax and tax refund, as well
as other provisions for tax application inland and liability for
violations of this Law.
Chapter
II
Taxable Persons and Taxable Transactions
Section 3. Taxable Persons
(1) Taxable person shall be any person who independently
performs any economic activity in any place, irrespective of the
purpose or results of that activity.
(2) Taxable persons are divided as follows:
1) inland taxable persons:
a) registered taxable persons - taxable persons which have
been registered in the State Revenue Service Value Added Tax
Taxable Persons Register;
b) non-registered taxable persons - taxable persons which have
not been registered in the State Revenue Service Value Added Tax
Taxable Persons Register, exercising the rights laid down in this
Law;
2) taxable persons of another Member State:
a) registered taxable persons of another Member State -
taxable persons which have been registered in the register of
taxable persons of another Member State for tax payment
purposes;
b) non-registered taxable persons of another Member State -
taxable persons which have not been registered in the register of
taxable persons of another Member State and the legal address or
place or residence of which is in another Member State;
3) taxable persons of third countries or third
territories:
a) registered taxable persons of third countries or third
territories - taxable persons to whom an identification number of
a taxable person or a similar number has been issued which allows
to identify the taxable person for tax application purposes and
is issued by the country in which the taxable person performs
economic activity;
b) non-registered taxable persons of third countries or third
territories - taxable persons to whom an identification number of
a taxable person or a similar number has not been issued which
allows to identify the taxable person for tax application
purposes and is issued by the country in which the taxable person
performs economic activity.
(3) A fiscal representative and a VAT group shall also be
regarded as a registered taxable person.
(4) Any person who on occasional basis supplies a new means of
transport, which is dispatched or transported to the recipient by
the supplier, recipient, or by the third person on behalf of the
supplier or recipient to a destination outside inland, but within
the territory of the European Union, shall be regarded as a
taxable person.
(5) A non-taxable person shall be regarded as a registered
taxable person for the determination of the place for the supply
of services, if the State Revenue Service has issued a number for
such person in the State Revenue Service Value Added Tax Taxable
Persons Register.
(6) For the purpose of determining the place of supply of
services, a recipient of services may be regarded as a taxable
person in conformity with Article 18 of Council Implementing
Regulation (EU) No 282/2011 of 15 March 2011 laying down
implementing measures for Directive 2006/112/EC on the common
system of value added tax (recast).
(7) A State or local government institution or a local
government shall also be regarded as a taxable person in respect
of receipt of construction services in accordance with the
procedures laid down in Section 142 of this Law.
(8) Bodies governed by public law, as well as private
individuals who in accordance with the State Administration
Structure Law fulfil the tasks of State administration delegated
or transferred to them through authorisation shall not be
regarded as taxable persons in respect of activities or
transactions in which they engage for the fulfilment of the State
administration functions or tasks.
(9) The bodies governed by public law referred to in Paragraph
eight of this Section shall be regarded as taxable persons in
particular cases where their treatment as non-taxable persons
would significantly affect the situation in the field of
competition in respect of the market participants (present or
potential) performing competitive activities or transactions and
thus would lead to significant distortions of competition.
(10) In any event, a body governed by public law shall be
regarded as a taxable person in respect of the following
transactions, if it:
1) supplies electronic communications services;
2) supplies goods, including water, gas, electricity;
3) supplies goods transport services;
4) supplies port or airport services;
5) supplies passenger transport services;
6) performs transactions in respect of agricultural products,
carried out by agricultural intervention agencies pursuant to
conditions of Regulations on the common organisation of the
market in those products;
7) organises trade fairs and exhibitions;
8) supplies warehousing services;
9) supplies advertising services of commercial nature;
10) supplies tourism services;
11) supplies television and radio services of commercial
nature;
12) supplies catering services (conforming to the exemptions
referred to in Section 52, Paragraph one of this Law);
13) supplies leasing services.
(11) A legal non-taxable person shall be regarded as a taxable
person if it performs acquisition of goods in the territory of
the European Union or receives services the place of supply of
which is determined in accordance with Section 19, Paragraph one
of this Law.
(12) A person shall not be regarded as a taxable person
insofar as he is bound to an employer by a contract of employment
or by any other legal ties creating the relationship of an
employer and employee as regards working conditions, remuneration
and the employer's liability.
Section 4. Economic Activity
(1) Economic activity shall mean any continuing, independent
activity for consideration (including any activity of producers,
traders or persons supplying services, agricultural
activity).
(2) Exploitation of tangible or intangible property for the
purposes of obtaining income therefrom on continuing basis shall
be regarded as economic activity within the meaning of this
Law.
Section 5. Taxable Transactions
(1) Taxable transactions shall be the following transactions
carried out inland within the framework of economic activity:
1) supply of goods (including supply of goods in the territory
of the European Union and exportation of goods) for
consideration;
2) supply of services for consideration;
3) acquisition of goods in the territory of the European Union
for consideration.
(2) Any importation of goods shall be taxable unless laid down
otherwise in this Law.
(3) Acquisition of a new means of transport in the territory
of the European Union carried out by a non-registered taxable
person or a non-taxable person shall also be a taxable
transaction.
(4) Supplies of new means of transport carried out on an
occasional basis, where a new means of transport is dispatched or
transported to the recipient by the supplier, recipient, or by
the third person on behalf of the supplier or recipient, from
inland to a destination outside inland, but within the territory
of the European Union, shall also be a taxable transaction.
Section 6. Transactions Comparable
to Supply of Goods and Services for Consideration
(1) Transfer of a part of assets to be used in economic
activity of a registered taxable person for his private use or
for that of his staff free of charge or their application for
purposes other than those of his economic activity, shall be
treated as a supply of goods for consideration, where the input
tax on the relevant goods or the component parts thereof has been
wholly or partly deducted.
(2) The following transactions of a registered taxable person
shall be treated as a supply of services for consideration:
1) use of a part of assets of economic activity for his or her
private use or for that of his or her staff or their application
for purposes other than those of his or her economic activity,
where the input tax on such parts of assets has been wholly or
partly deducted;
2) supply of services carried out free of charge for his or
her private use or for that of his or her staff or for purposes
other than those of his or her economic activity.
(3) Where a taxable person acting in his own name, but on
behalf of another person, takes part in a supply of service, he
or she shall be deemed to have received and supplied those
services himself or herself.
(4) Paragraphs one and two of this Section shall not apply to
cases when the restriction for the deduction of input tax
specified in Section 100, Paragraph two of this Law is applicable
to a registered taxable person.
(5) If a taxable person, using an electronic interface, for
example, a sales point, platform, or portal, promotes distance
selling of goods imported from the third countries or third
territories in consignments the true value of which does not
exceed EUR 150, it shall be regarded that the taxable person has
received and supplied the goods itself.
(6) If a taxable person, using an electronic interface, for
example, a sales point, platform, or portal, promotes the supply
of goods performed by such taxable person who does not perform
economic activity in the European Union to a person in the
European Union who is not a taxable person, it shall be regarded
that the taxable person has received and supplied the goods
itself.
(7) If it is regarded that the taxable person referred to in
Paragraphs five and six of this Section has received and supplied
the goods itself, the dispatch or transport of the goods shall be
attributed to the supply performed by the abovementioned taxable
person.
[6 November 2013; 15 October 2020]
Section 7. Transactions which are
not Regarded as Supply of Goods or Services for Consideration
(1) The use of goods intended for the needs of economic
activity as samples or gifts of small value shall not be regarded
as a supply of goods for consideration.
(2) The transfer of an undertaking (joint ownership of
property or a part thereof that is expressed as transfer of
assets and liabilities) into the ownership or use of another
economic operator shall not be treated as a supply of goods for
consideration, if in transferring assets and liabilities for
consideration or without it or in investing into equity capital
of a capital company or partnership investment (capital), the
acquirer of the company becomes a successor of the rights and
liabilities of the transferor within the meaning of the
Commercial Law and economic activity not related to sale of the
company or liquidation of the commercial company is
continued.
(3) If the acquirer of an undertaking does not actually become
the successor of the rights and liabilities of the transferor
within the meaning of the Commercial Law and economic activity is
not continued as a result of the transfer of the undertaking
referred to in Paragraph two of this Section, transfer of assets
and liabilities shall be treated as a separate supply of goods or
services (acquired rights and other intangible assets) that are
taxable in accordance with the procedures laid down in this
Law.
Section 8. Transactions Comparable
to Supply of Goods for Consideration in the Territory of the
European Union
(1) Dispatch or transport of movable property - a part of
assets to be used in economic activity of an inland taxable
person - from inland to a destination in another Member State for
the purposes of provision of its economic activity, if such
transfer is carried out by an inland taxable person itself or by
another person on behalf of it, shall be treated as a supply of
goods for consideration in the territory of the European
Union.
(2) The dispatch or transport of the goods referred to in
Paragraph one of this Section to another Member State for the
purposes of any of the following transactions shall not be
treated as a transfer to another Member State from inland to a
destination in another Member State:
1) the supply of goods intended for distance selling in
accordance with Section 13.1, Paragraph one of this
Law;
2) the supply of goods intended for installation or assembly,
if such goods are installed or assembled by a supplier or by
another person on behalf of it;
3) 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;
4) 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,
supply of electricity, thermal energy or cooling energy through
thermal energy or cooling networks;
5) the supply of the goods referred to in Sections 43, 47, 48,
and 50 of this Law to which the zero per cent tax rate is applied
in the territory of the Member State where the dispatch or
transport of such goods ends;
6) the supply of gold, coins, and bank notes to central banks
of the Member States;
7) 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;
8) 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;
9) the dispatch of goods for temporary use, for a period not
exceeding twenty-four months, 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.
(3) If one of the conditions governing eligibility under
Paragraph two of this Section is no longer met, the goods shall
be regarded as having been dispatched or transported to another
Member State. A transaction shall be deemed to take place in the
territory of the European Union at the time when that condition
ceases to be met.
(31) The transfer of goods of an inland taxable
person which form part of its assets of economic activity from
inland to another Member State by performing the supply of goods
to a warehouse in another Member State in accordance with Section
8.1 of this Law shall not be treated as a supply of
goods for consideration in the territory of the European
Union.
(4) The dispatch or transport of goods to another Member State
in accordance with Section 45, Paragraphs one and two of this Law
after their release for free circulation inland shall be treated
as a supply of goods for consideration in the territory of the
European Union.
[28 November 2019; 15 October 2020]
Section 8.1 Supply of
Goods to a Warehouse in Another Member State
(1) It shall be deemed that the supply of goods to a warehouse
in another Member State takes place if all of the following
conditions are met:
1) a registered taxable person or a third person on its behalf
dispatches or transports goods from inland to another Member
State so that following the importation in another Member State
they could be delivered at a later stage to a registered taxable
person of another Member State who is entitled to become the
owner of the abovementioned goods in conformity with a valid
agreement between both taxable persons;
2) a registered taxable person who dispatches or transports
goods from inland to another Member State does not have the seat
of a economic activity and a fixed establishment in the Member
State to which the goods are dispatched or transported;
3) the recipient of goods is a taxable person registered by
another Member State in the Member State to which the goods are
dispatched or transported, and its identity and registration
number assigned thereto by the abovementioned Member State are
known to the taxable person referred to in Clause 2 of this
Paragraph at the beginning of the dispatch or transportation of
the goods;
4) a registered taxable person who dispatches or transports
goods from inland to another Member State registers the transfer
of goods in the Register referred to in Section 134, Paragraph
three, Clause 3 of this Law and declares the supply of such goods
in the report on supply of goods and services in the territory of
the European Union.
(2) If within 12 months after importation of goods in the
Member State to which such goods were dispatched or transported
the recipient of goods referred to in Paragraph one, Clause 3 of
this Section is replaced by a taxable person registered by
another Member State who has been registered in the taxable
persons register of such Member State for the purpose of paying
taxes, it shall be deemed that the goods are supplied to a
warehouse in another Member State, provided that:
1) the conditions of Paragraph one, Clauses 1, 2, and 4 of
this Section have been met;
2) the registered taxable person who dispatched or transported
the goods registers such replacement in the Register referred to
in Section 134, Paragraph three, Clause 3 of this Law.
(3) If within 12 months after importation of goods in the
Member State to which they were dispatched or transported the
goods have not been supplied to the taxable person referred to in
Paragraph one, Clause 3 or Paragraph two of this Section and none
of the circumstances referred to in Paragraph five, six, seven or
eight of this Section has not set in, it shall be deemed that the
transfer of goods from inland to destination in another Member
State referred to in Section 8, Paragraph one of this Law takes
place on the day of expiry of the 12-month period.
(4) Paragraph three of this Section shall not be applied and
it shall be deemed that the transfer of goods from inland to
destination in another Member State referred to in Section 8,
Paragraph one of this Law does not take place if both of these
conditions are met:
1) the right to act with the goods has not been transferred to
the recipient of goods, and within 12 months after their
importation in the Member State to which they were dispatched or
transported such goods are returned to inland;
2) the registered taxable person who dispatched or transported
the goods registers the return of such goods in the Register
referred to in Section 134, Paragraph three, Clause 3 of this
Law.
(5) If any of the conditions of Paragraph one or two of this
Section has not been met within 12 months after the importation
of goods in the Member State to which they were dispatched or
transported, it shall be deemed that the transfer of goods from
inland to destination in another Member State referred to in
Section 8, Paragraph one of this Law takes place at the moment
when any of these conditions are not met.
(6) If the goods are supplied to a person other than the
taxable person referred to in Paragraph one, Clause 3 or
Paragraph two of this Section, it shall be deemed that the
transfer of goods from inland to destination in another Member
State referred to in Section 8, Paragraph one of this Law takes
place right before providing such supply of goods.
(7) If the goods, after their importation in the Member State
to which they were dispatched or transported, are dispatched or
transported to a country other than the Member State to which the
goods were dispatched or transported, it shall be deemed that the
conditions of Paragraph one or two of this Section are no longer
met right before such dispatch or transportation.
(8) If the goods are destroyed, lost, or stolen, it shall be
deemed that the transfer of goods from inland to destination in
another Member State referred to in Section 8, Paragraph one of
this Law takes place on the day when the goods were actually lost
or destroyed or, if such day cannot be determined, on the day
when the loss or destruction of goods has been established.
[28 November 2019]
Section 9. Transactions Comparable
to Acquisition of Goods for Consideration in the Territory of the
European Union
(1) Dispatch or transport of a part of assets to be used in
economic activity of a taxable person from another Member State
to inland shall be treated as acquisition of goods for
consideration in the territory of the European Union, if such
transfer is regarded as dispatch or transport of goods to another
Member State in accordance with Section 8 of this Law.
(2) The following transactions shall not be treated as an
acquisition of goods for consideration in the territory of the
European Union:
1) receipt of goods (except for new means of transport) inland
if the goods are received by:
a) a non-registered taxable person until reaching the
registration threshold laid down in Section 57, Paragraph one of
this Law;
b) a non-taxable person;
2) receipt of new means of transport inland, provided that all
of the following conditions are met:
a) a new means of transport as a personal property is brought
in from another Member State and registered inland by a
non-taxable person which has acquired such means of transport in
another Member State during fulfilment of the official or
services duties;
b) the tax laid down in another Member State has been paid for
the acquisition of a new means of transport or exemption from the
tax has been applied in accordance with the applicable legal acts
in such country, and it can be proven by documentary means;
c) a new means of transport has been registered for the first
time in another Member State where it was purchased;
3) the receipt of such goods at the inland customs warehouses
or free zones for which export procedure of goods has been
started in another Member State;
4) the receipt of gold, coins and bank notes in Latvijas
Banka.
(3) The receipt of goods inland in accordance with Section 45,
Paragraphs one and two of this Law after their release for free
circulation in another Member State shall be treated as an
acquisition of goods for consideration in the territory of the
European Union.
(4) Dispatch or transport of the goods used for the needs of
the National Armed Forces of the Republic of Latvia, including
for the needs of civilian staff accompanying them, from another
Member State to inland, if acquisition or supply of such goods
has taken place in another Member State and the latter did not
apply exemption from tax or if during importation of such goods
in another Member State the latter did not apply exemption from
tax at the moment of importation, shall be treated as an
acquisition of goods for consideration in the territory of the
European Union.
[20 April 2017; 10 February 2022]
Section 10. Transactions of Distance
Selling of Goods
[15 October 2020]
Section 10.1 Transactions
of Distance Selling of Goods
(1) Within the meaning of this Law, distance selling of goods
in the territory of the European Union is such supply of goods
where the supplier of goods or a third party in the name of the
supplier of goods dispatches or transports goods (also if the
supplier indirectly participates in the dispatch or transport of
goods) from such Member State which is not a Member State in
which the dispatch or transport of goods to the recipient of
goods ends.
(2) Within the meaning of this Law, distance selling of goods
imported from the third countries or third territories is such
supply of goods when the supplier of goods or a third party in
the interests of the supplier of goods dispatches or transports
goods (also if the supplier indirectly participates in the
dispatch or transport of goods) from the third country or third
territory to the recipient of goods in the Member State.
(3) Paragraphs one and two of this Section shall be applied if
all of the following conditions are met:
1) the recipient of goods is a non-registered taxable person,
a non-registered taxable person of another Member State or a
non-taxable person;
2) the goods supplied are neither new means of transport nor
goods intended for assembly or installation.
(4) The distance selling conditions referred to in Paragraphs
one and two of this Section shall not apply to supplies of
second-hand goods, works of art, collector's items or antiques
subject to tax in accordance with the special tax application
arrangement.
[15 October 2020]
Section 11. Transactions within a
VAT Group
(1) If registered inland taxable persons are members of a VAT
group, it shall be considered that economic activity of one
member of the VAT group is performed by the whole VAT group and
any supply of goods, supply of services or receipt of goods or
services by a member of the VAT group shall be treated as the
supply of goods, supply of services or receipt of goods or
services by the VAT group.
(2) The supply of goods or services by one member of the VAT
group to another member of the same VAT group shall not be
subject to the norms of this Law.
(3) If, in a transaction between two members of the same VAT
group, one of them uses its own registration number in the State
Revenue Service Value Added Tax Taxable Persons Register, but the
other - a registration number in the taxable persons register of
another Member State, the tax shall be applied in accordance with
the general procedure laid down in this Law.
(4) If the supply of goods or services takes place between a
member of the VAT group and such person who has been excluded
from such VAT group, the tax shall be applied to the received
advance payment made until exclusion from the VAT group in
accordance with the general procedure laid down in this Law.
Section 11.1 Transactions
by Vouchers
(1) Each transfer of a single-purpose voucher made by a
taxable person acting in its own name shall be regarded as the
supply of such goods or services to which the voucher relates.
The actual transfer of goods or the actual provision of services
in return for a single-purpose voucher accepted as consideration
or partial consideration by the supplier shall not be regarded as
an independent transaction.
(2) If a single-purpose voucher is transferred by a taxable
person acting in the name of another taxable person, such
transfer shall be regarded as the supply of such goods or
services to which the voucher relates and which are made by the
other taxable person in whose name the taxable person is
acting.
(3) If the supplier of goods or services is not the taxable
person who, acting in its own name, issued the single-purpose
voucher, that supplier, however, shall be deemed to have provided
the supply of the goods or services related to that voucher to
the referred to taxable person.
(4) The actual transfer of goods or the actual provision of
services in return for a multi-purpose voucher accepted as
consideration or partial consideration by the supplier of goods
or services shall be a taxable transaction in accordance with
Section 5 of this Law, whereas each preceding transfer of that
multi-purpose voucher shall not be a taxable transaction.
(5) If a multi-purpose voucher is transferred by a taxable
person other than the taxable person carrying out the taxable
transaction in compliance with Paragraph four of this Section,
any supply of services that can be identified, such as
distribution or promotion services, shall be taxable in
accordance with the general procedure laid down in this Law.
[30 May 2019]
Chapter
III
Place of Transaction
Section 12. Place of Supply of
Goods
(1) Where goods are dispatched or transported, the place of
supply of goods (also for the supply of goods in the territory of
the European Union) shall be deemed to be the place where the
goods are located at the time when the dispatch or transport of
goods to the recipient of goods begins.
(2) Where goods are not dispatched or transported, the place
of supply of goods shall be deemed to be the place where the
goods are located at the time of their supply.
(3) Where 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 shall be deemed to the
place where the goods are assembled or installed.
(4) Where the goods are dispatched or transported by the
taxable person who has promoted the supply of such goods, using
an electronic interface in accordance with the conditions of
Section 6, Paragraphs five and six of this Law, the place of
supply of goods is the place where such taxable person has
supplied the goods.
[15 October 2020]
Section 13. Place of Supply of Goods
in Distance Selling Transactions
[15 October 2020]
Section 13.1 Place of
Supply of Goods in Distance Selling Transactions
(1) In distance selling transactions in the territory of the
European Union, the Member State in which the goods are located
at the time when dispatch or transport of the goods to the
recipient of goods ends shall be regarded as the place of supply
of goods.
(2) Paragraph one of this Section shall not be applied if all
of the following conditions are met:
1) the supplier of goods performs economic activity in only
one Member State or, if no economic activity is performed, the
declared place of residence or the permanent place of residence
of the supplier of goods is in only one Member State;
2) goods are dispatched or transported to a Member State other
than the Member State referred to in Clause 1 of this
Paragraph;
3) the total value, exclusive of tax, of the supplied goods
referred to in Clause 2 of this Paragraph in the previous or
current calendar year does not exceed EUR 10 000.
(3) If, during a calendar year, the threshold referred to in
Paragraph two, Clause 3 of this Section is exceeded, the place of
supply of goods in distance selling transactions shall be
determined in accordance with Paragraph one of this Section as of
the moment of exceeding the threshold.
(4) The supplier of goods referred to in Paragraph two of this
Section has the right to determine the place of supply of goods
in distance selling transactions in accordance with Paragraph one
of this Section and shall be bound by that decision for at least
two calendar years.
(5) In distance selling transactions of goods imported from
the third countries or third territories, one of the following
Member States shall be regarded as the place of supply of
goods:
1) the Member State in which the dispatch or transport of
goods to the recipient of goods ends if the importation of goods
is performed to such Member State which is not a Member State in
which the dispatch or transport of goods to the recipient of
goods ends;
2) the Member State in which the dispatch or transport of
goods to the recipient of goods ends and which coincides with the
Member State of importation if the supplier of goods declares the
tax for the abovementioned goods in accordance with the import
scheme specified in Section 140.4 of this Law.
(6) If excisable goods are supplied in accordance with the
conditions for the distance selling of goods, the place of their
supply shall be the Member State where the goods are located at
the time when dispatch or transport thereof to the recipient of
goods ends, regardless of the registration threshold laid down in
the relevant Member State.
(7) In transactions of distance selling of goods, the place of
supply of goods shall be inland if the taxable person of another
Member State supplies excisable goods from another Member State
inland to a non-registered taxable person or a non-taxable
person.
[15 October 2020]
Section 14. Place of Supply of Goods
on Board Ships, Aircraft and Trains
(1) Where goods are supplied to passengers on board ships,
aircraft or trains during the section of their transport
operation effected within the territory of the European Union,
the place of supply of goods shall be deemed to be at the point
of departure of the passenger transport operation.
(2) Section of a passenger transport operation effected in the
territory of the European Union shall mean the section of the
operation effected without stopover outside the territory of the
European Union between the point of departure and the point of
arrival of the passenger transport operation.
(3) Point of departure of a passenger transport operation
shall mean the first scheduled point of passenger embarkation
within the territory of the European Union (also after a stopover
outside the territory of the European Union).
(4) Point of arrival of a passenger transport operation shall
mean the last scheduled point of disembarkation within the
territory of the European Union of passengers who embarked on
board ship, aircraft or train in the territory of the European
Union (also before a stopover outside the territory of the
European Union).
(5) In the case of a return trip, the return leg shall be
regarded as a separate transport operation.
Section 15. Place of Supply of Gas,
Thermal Energy, Electricity and Cooling Energy
(1) Where gas is supplied to a taxable person through a
natural distribution gas system located in the territory of the
European Union or through networks connected to such system, and
also electricity, thermal energy or cooling energy that is
ensured through thermal energy or cooling energy networks is
supplied thereto, the place of supply of such goods shall be
deemed to be the seat of economic activity of such person or the
place where it has a fixed establishment, or, in the absence of
the seat of economic activity or fixed establishment, the
declared place of residence, but, in the absence of such - place
of permanent residence, if all of the following conditions are
met:
1) economic activity of the taxable person is acquisition of
gas, electricity, thermal energy or cooling energy and reselling
thereof;
2) self-consumption of gas, electricity, thermal energy or
cooling energy by the taxable person is negligible.
(2) Where conditions of Paragraph one of this Section do not
apply to the supply of gas through a natural gas distribution
system which is located in the territory of the European Union or
networks which are connected to such system, to supply of
electricity, thermal energy or cooling energy which is ensured
through thermal energy or cooling networks, the place where a
recipient effectively consumes such gas, electricity, thermal
energy or cooling energy shall be deemed as the place of supply
of goods.
(3) Where all or part of the gas, electricity, thermal energy
or cooling energy is not effectively consumed by the recipient,
those non-consumed goods shall be deemed to have been consumed at
the place where the recipient of goods has its seat of economic
activity or at the place where it has a fixed establishment to
which the goods are supplied, or, in the absence of the seat of
economic activity or fixed establishment, at its declared place
of residence, but, in the absence of such - place of permanent
residence.
[6 November 2013]
Section 16. Place of Acquisition of
Goods in the Territory of the European Union
(1) Where the acquisition of goods has taken place in the
territory of the European Union, the place of acquisition of
goods shall be the Member State in which the goods are located at
the moment when the dispatch or transport of the goods to the
recipient of goods ends.
(2) The place where the acquisition of goods in the territory
of the European Union has taken pace shall be inland if the goods
are dispatched or transported from another Member State to
inland.
(3) The place where the acquisition of goods in the territory
of the European Union has taken place shall be deemed to be
inland if a registered taxable person has presented a valid value
added tax registration number of a taxable person in the State
Revenue Service during the acquisition of goods in the territory
of the European Union, unless the registered taxable person who
conducted the acquisition of goods proves that the tax has been
applied in the Member State where the dispatch or transport of
goods ends.
(4) Paragraph three of this Section shall not be applied and
the tax shall be deemed to have been applied in accordance with
Paragraph one of this Section in the Member State where the
dispatch or transport of goods ends if:
1) a registered taxable person has conducted the acquisition
of goods in the territory of the European Union from a registered
taxable person of another Member State for the purpose of
supplying such goods to a final recipient in the territory of the
Member State which, in accordance with Paragraph one of this
Section, is to be deemed as the place where the acquisition of
such goods in the territory of the European Union has taken
place;
2) the final recipient of the goods is a registered taxable
person of the Member State referred to in Clause 1 of this
Paragraph and is responsible for the payment of the tax into the
budget of its State as the recipient of such goods;
3) a registered taxable person has indicated the supply of
goods referred to in Clause 1 of this Paragraph with special
notation in a report on supply of goods and services in the
territory of the European Union.
Section 17. Place of Acquisition of
a New Means of Transport in the Territory of the European
Union
(1) Where a non-registered taxable person or non-taxable
person acquires a new means of transport in the territory of the
European Union, the place of acquisition of such means of
transport shall be the Member State in which the means of
transport is registered.
(2) The place where the acquisition of a new means of
transport in the territory of the European Union has taken place
shall be inland if such means of transport is to be registered in
the relevant registers laid down in the Republic of Latvia.
Section 17.1 Place of
Supply of Goods to a Warehouse in Another Member State
(1) When goods have been supplied to a warehouse in another
Member State, the place of supply of goods in the territory of
the European Union shall be the Member State from which the
supplier of goods or a third person on its behalf dispatches or
transports the goods.
(2) When goods have been supplied to a warehouse in another
Member State, the place of acquisition of goods in the territory
of the European Union shall be the Member State to which the
goods are dispatched or transported.
[28 November 2019]
Section 18. Place of Importation of
Goods
(1) The place of importation of goods shall be the Member
State within whose territory the customs procedure for the
importation of goods is ended.
(2) If the customs procedure for the importation of goods is
ended inland, the place of importation of goods shall be
inland.
Section 19. General Provisions for
the Determination of the Place of Supply of Services
(1) If a service is supplied to a taxable person, the place of
supply of service, unless otherwise laid down in this Law, shall
be:
1) the seat of economic activity of the recipient of the
service;
2) the place of location of the fixed establishment of the
recipient of the service, if the service is provided to the fixed
establishment of the recipient of the service which is not
located at the seat of economic activity of such person;
3) the declared place of residence of the recipient of the
service, but, in the absence of such a place - the place of
permanent residence, if the recipient of the service does not
have a seat of economic activity or fixed establishment.
(2) If a service is supplied to a non-taxable person, the
place of supply of service, unless otherwise laid down in this
Law, shall be:
1) the seat of economic activity of the supplier of the
service;
2) the place of location of the fixed establishment of the
supplier of the service if the service is supplied from the fixed
establishment of the supplier of the service which is not located
at the seat of economic activity of such person;
3) the declared place of residence of the supplier of the
service, but, in the absence of such a place - the place of
permanent residence, if the supplier of the service does not have
seat of economic activity or fixed establishment.
Section 20. Place of Supply of
Cultural, Artistic, Sporting, Scientific, Educational,
Entertainment and Other Services of Similar Nature
(1) The place of supply of such service or ancillary service
which is related to the acquisition of tickets for cultural,
artistic, sporting, scientific, educational, entertainment or
similar activities (for example, trade fairs, exhibitions), if
they are supplied to a taxable person, shall be the place where
the relevant event actually takes place.
(2) The place of supply of such service or ancillary service
which is related to cultural, artistic, sporting, scientific,
educational, entertainment or similar activities (for example,
trade fairs, exhibitions), including the place where the service
of organisers of such events is provided, if they are supplied to
a non-taxable person, shall be the place where the relevant event
actually takes place.
Section 21. Place of Supply of
Passenger Transport Service
The place of supply of passenger transport service shall be
the place where the passenger transport operation actually takes
place in proportion to distances travelled in inland and other
countries.
Section 22. Place of Supply of Goods
Transport Service
(1) The place of supply of a goods transport service other
than goods transport service within the territory of the European
Union, where such service is supplied to a non-taxable person,
shall be the place where goods transport actually takes place in
proportion to distances travelled in inland and other
countries.
(2) The place where goods transport services are supplied
within the territory of the European Union, if such service is
supplied to a non-taxable person, shall be the Member State in
which the transportation of goods is started.
Section 23. Place of Supply of
Service Connected with the Transportation of Goods
Where loading, unloading, handling and storage of goods
service, as well as another service connected with the
transportation of goods is supplied to a non-taxable person, the
place of supply of service shall be the place where the service
is actually supplied.
Section 24. Place of Supply of
Service Connected with a Movable Tangible Property
(1) Where the service connected with a movable tangible
property (including valuation, repair, maintenance, treatment,
processing) is supplied to a non-taxable person, the place of
supply of the service shall be the place where the service is
actually supplied.
(2) Provisions of Paragraph one of this Section shall not
apply to the lease of a movable tangible property, including
lease of all means of transport.
Section 25. Place of Supply of
Service Connected with Immovable Property
The place of supply of services connected with immovable
property, including the services of estate agents and experts,
guest accommodation service, the immovable property lease
service, construction service and services for the preparation
(including the services of architects), coordination and
supervision of construction work, shall be the place where the
immovable property is located.
Section 26. Place of Supply of
Intermediation Service
Where an intermediary supplies a service to a non-taxable
person, the place of supply of the service shall be the place
where the transaction, in which the intermediary is involved, is
carried out in accordance with this Law.
Section 27. Place of Supply of
Electronic Communications, Broadcasting and Electronically
Supplied Service
(1) The place of supply of electronic communications,
broadcasting and electronically supplied service, if it is
supplied to a non-taxable person, shall be the seat or declared
place of residence of the non-taxable person, but in the absence
of such - the permanent place of residence.
(2) The use of electronic mail between the service provider
and recipient of the service shall not mean that it is an
electronically supplied service.
(3) Paragraph one of this Section shall not be applied if all
of the following conditions are met:
1) the supplier of the service performs economic activity in
only one Member State or, if no economic activity is performed,
the declared place of residence or the permanent place of
residence of the supplier is in only one Member State;
2) services are supplied to non-taxable persons who are
registered in any Member State which is any Member State other
than the Member State referred to in Clause 1 of this Paragraph
or whose declared place of residence or the permanent place of
residence is in such Member State;
3) the total value, exclusive of tax, of the supplied services
referred to in Clause 2 of this Paragraph in the previous or
current calendar year does not exceed EUR 10 000.
(4) If, during a calendar year, the threshold referred to in
Paragraph three, Clause 3 of this Section is exceeded, the place
of supply of electronic communications, broadcasting and
electronically provided service as of the moment of exceeding the
threshold shall be determined in accordance with Paragraph one of
this Section.
(5) The supplier of a service referred to in Paragraph three
of this Section has the right to determine the place of supply of
services in accordance with Paragraph one of this Section and
shall be bound by that decision for at least two calendar
years.
[12 June 2014; 30 May 2019; 15 October 2020]
Section 28. Place of Supply of the
Service of Leasing a Means of Transport
(1) The place of supplying the service of leasing a means of
transport, if the continuous possession or use of the means of
transport does not exceed 30 days (in respect of vessels - 90
days), shall be the place where the means of transport is
actually put at the disposal of the recipient of the service.
(2) The place of supply of the service of leasing a means of
transport, if the service is supplied to a non-taxable person and
continuous possession or use of the means of transport exceeds 30
days (in respect of vessels - 90 days), shall be the seat,
declared place of residence, but, in the absence of such - the
place of permanent residence of the recipient of the service.
(3) If a pleasure craft is leased to a non-taxable person for
a time period which exceeds 90 days, the place of supply of
service shall be the place where the supplier of service actually
puts the craft at the disposal of the recipient of the service,
if the supplier of the service supplies such service from its
seat of economic activity or the place of fixed
establishment.
Section 29. Place of Supply of
Restaurant and Catering Services
(1) The place of supply of restaurant and catering services,
except when such services are supplied on board ships, aircraft
or trains in the section of passenger transport operation in the
territory of the European Union, shall be the place where such
services are actually supplied.
(2) Where restaurant and catering services are supplied to
passengers on board ships, aircraft or trains in the section of
the passenger transport operation in the territory of the
European Union between the point of departure and the point of
arrival of the passenger transport operation (without stopover
outside the territory of the European Union), the place of supply
of the services shall be the point of departure of the passenger
transport operation.
(3) Within the meaning of this Section, the point of departure
of a passenger transport operation shall mean the first scheduled
point of passenger embarkation within the territory of the
European Union (also after a stopover outside the territory of
the European Union).
(4) Within the meaning of this Section, the point of arrival
of a passenger transport operation shall mean the last scheduled
point of disembarkation within the territory of the European
Union of passengers who embarked on board ship, aircraft or train
in the territory of the European Union (also before a stopover
outside the territory of the European Union).
(5) In the case of a return trip, within the meaning of this
Section the return leg shall be regarded as a separate transport
operation.
Section 30. Provisions for the
Determination of the Place of Supply of Other Services
(1) Where the service is supplied to a non-taxable person
whose seat, declared place of residence, but, in the absence of
such - place of permanent residence is outside the territory of
the European Union, the place of supply of the service shall be
the seat, declared place of residence, but, in the absence of
such - the place of permanent residence for the following
services:
1) assignments and transfers of copyrights, patents, licences,
trade marks and similar rights to the disposal and control of
other persons;
2) services connected with advertising and public
relations;
3) legal, accounting, audit, consulting, translating,
expert-examination, engineering, market research and other
similar services, as well as data processing and provision of
information;
4) obligations to refrain from pursuing or exercising, in
whole or in part, any activity or action referred to in this
Paragraph;
5) the supply of staff services, including personnel selection
and staffing services, except preparation and training of such
staff;
6) the services of leasing a movable tangible property, except
for leasing of all means of transport;
7) [12 June 2014];
8) [12 June 2014];
9) financial and insurance services, including reinsurance,
with the exception of the leasing of safes;
10) the provision of access to natural gas distribution
system, which is located in the territory of the European Union,
or to the network connected to such system, to electricity,
thermal energy or cooling energy network, as well as transmission
and distribution services and other services directly linked
thereto;
11) [12 June 2014].
(2) The place of supply of the goods transport service, if
such service is provided to a registered taxable person or a
registered taxable person of a third country or third territory,
the electronic communications, broadcasting, and electronically
supplied service, the service of leasing of movable tangible
property and leasing of means of transport shall be:
1) outside the territory of the European Union, if the service
is used outside the territory of the European Union, although in
accordance with the requirements of this Law the place of supply
of the service is inland;
2) inland, if the service is used inland, although in
accordance with the requirements of this Law the place of supply
of the service is outside the territory of the European
Union.
(3) [12 June 2014]
[6 November 2013; 12 June 2014 / Amendments to the
Section shall come into force on 1 January 2015. See Paragraph 19
of Transitional Provisions]
Chapter
IV
Time of Transaction
Section 31. Time of Supply of Goods,
Supply of Goods in the Territory of the European Union and
Acquisition of Goods in the Territory of the European Union
(1) The time of supply of goods shall be the time when the
supply of goods takes place physically, but not later than the
time when the goods are received by the recipient of goods,
unless it is otherwise provided for in this Section.
(2) Where the goods are supplied permanently over a continuous
time period (with the exception of hire purchase transactions)
and tax invoices are issued at regular intervals for such supply
of goods or such supply of goods causes further payments, it
shall be deemed that the transaction has occurred at the time
when the period to which such invoices or payments apply to ends,
but not less than once in six months, unless it is otherwise
provided for in this Section.
(3) Where the supply of goods within the territory of the
European Union takes place permanently over a continuous time
period and exceeds one calendar month, it shall be deemed that
the transaction has occurred in the end of each calendar month
until the time when the supply of goods is completely
finished.
(4) The acquisition of goods in the territory of the European
Union has taken place at the time when the acquisition of goods
has been physically made, but not later than the time when the
goods are received.
(5) If the goods brought in inland from another Member State
for the treatment, evaluation, processing or repair are not
brought out to the country from which such goods have been
brought in, it shall be deemed that the acquisition of goods in
the territory of the European Union has taken place in the
taxation period in which the supply of such goods has taken place
to any other person inland or outside it.
(6) If the goods brought out from inland in accordance with
Section 8, Paragraph two, Clause 7 of this Law to another Member
State for treatment, evaluation, processing or repair are not
dispatched back to inland after the supply of the abovementioned
services, it shall be deemed that the supply of goods in the
territory of the European Union has taken place in the taxation
period in which the supply of such goods to any other person has
taken place in the relevant Member State or outside it.
(7) If the time period of the presence of goods dispatched
from another Member State in inland exceeds the time limit laid
down in Section 8, Paragraph two, Clause 9 of this Law, the
acquisition of goods in the territory of the European Union has
taken place in the taxation period when such time limit ends.
(8) If the time period of the presence of goods dispatched
from inland in the Member State exceeds the time limit laid down
in Section 8, Paragraph two, Clause 9 of this Law, the supply of
goods in the territory of the European Union has taken place in
the taxation period when such time limit ends.
(9) Supply of goods with assembly or installation shall be
deemed as taken place when the assembly or installation is
finished.
(10) If a new means of transport has been acquired in the
territory of the European Union, the time of acquisition of the
means of transport shall be determined in accordance with
Paragraph four of this Section.
Section 31.1 Time of
Supply of Goods to a Warehouse in Another Member State
When the goods have been supplied to a warehouse in another
Member State, the time of supply of goods in the territory of the
European Union and the time of acquisition of goods in the
territory of the European Union shall be the time when the right
to act with the goods as owner is transferred to the recipient of
goods referred to in Section 8.1, Paragraph one,
Clause 3 of this Law.
[28 November 2019]
Section 32. Time of Supply and
Receipt of Service
(1) 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.
(2) Receipt of a service has taken place, where the service is
received.
(3) Where the service is supplied permanently over a
continuous time period (with the exception of leasing a movable
tangible property) and tax invoices are issued at regular
intervals for such supply of services or such supply of services
causes further payments, it shall be deemed that the transaction
has occurred at the time when the period to which such invoices
or payments apply to ends, but not less than once in six months,
unless it is otherwise provided for in this Section.
(4) If services for which the tax is paid by the recipient of
services in accordance with Sections 88 and 89 of this Law are
supplied permanently over a continuous time period exceeding one
year and tax invoices are not issued or payments are not made
during such time period for the supply of such services, it shall
be deemed that the transaction has taken place in the end of each
calendar year until the time when the supply of the service is
completely finished.
(5) Construction service is supplied when a statement on
acceptance of construction object is signed for each stage of
performance of construction works, but not less than once in 12
months.
(6) Goods transport service in the territory of the European
Union or goods transport service related to exportation or
transit of goods is supplied when the freight is transferred to
the recipient of goods and acceptance of freight is confirmed in
a transport bill of lading.
(7) Hire purchase transaction for the acquisition of immovable
property shall be deemed as leasing service starting with the
first hire purchase payment, if the conditions of the hire
purchase contract are not fulfilled and therefore the hire
purchase object remains in the ownership of the supplier.
Section 33. Time of Importation of
Goods
Importation of goods has taken place when the goods are
released for free circulation.
Chapter V
Taxable Value of Transaction
Section 34. General Provisions for
the Determination of the Taxable Value of Transaction
(1) In a transaction of the supply of goods or services, the
taxable value shall be the consideration obtained in return for
the supply of goods or services.
(2) The taxable value of the supply of goods referred to in
Section 6, Paragraph one of this Law shall be the acquisition
value of the supplied goods or of similar goods or, in the
absence of an acquisition value, the cost price for the
production of the goods.
(3) The taxable value of the services referred to in Section
6, Paragraph two of this Law shall include all costs related to
the supply of service.
(4) The taxable value of the supply of goods in the territory
of the European Union shall be the consideration for the supplied
goods or, if the goods are supplied in territory of the European
Union in accordance with Section 8, Paragraph one of this Law,
the acquisition value of the relevant goods or of similar goods
or, in the absence of an acquisition value, the cost price for
the production of the goods determined at the time of supply.
(5) The taxable value of the acquisition of goods in the
territory of the European Union shall be the consideration for
the acquired goods or, if the goods are acquired in territory of
the European Union in accordance with Section 9, Paragraph one of
this Law, the acquisition value of the relevant goods or of
similar goods or, in the absence of an acquisition value, the
cost price for the production of the goods determined at the time
of supply.
(6) The taxable value of an intermediation service shall be
the negotiation consideration.
(7) In a leasing transaction, the taxable value shall be all
payments laid down in the leasing contract.
(8) In a hire purchase transaction, the taxable value shall be
the consideration laid down in the contract on the hire purchase
object on the day of entering into the contract, as well as all
additional payments laid down in the contract, except for the
interest on credit.
(9) In a transaction of supply of goods and services between
related persons within the meaning of the law On Taxes and Fees,
the taxable value shall be the market value of the supply of
goods and services if the transaction value is:
1) less than the market value, and the recipient of goods or
services has no right to deduct the input tax in full amount;
2) less than the market value, and the supplier of goods or
services has no right to deduct the input tax in full amount, and
the supply of goods or services is exempted from the tax in
accordance with Section 52, Paragraph one of this Law;
3) more than the market value, and the supplier of goods or
services has no right to deduct the input tax in full amount.
(10) If the value of taxable supply of goods and services of a
non-registered taxable person exceeds the registration threshold
laid down in Section 59, Paragraph one of this Law during 12
months, the taxable value of such taxable person until the time
of registration shall be the amount which exceeds 35 000 lats.
The calculated tax amount shall be included in the transaction
value.
(11) If the total value of taxable acquisition of goods in the
territory of the European Union of a non-registered taxable
person exceeds the registration threshold laid down in Section
57, Paragraph one of this Law during a calendar year, the taxable
value of such taxable person until the time of registration shall
be the amount which exceeds 10000 lats. The calculated tax amount
shall be included in the transaction value.
(12) If a taxable person of another Member State provides the
supply of goods in accordance with Section 10.1 of
this Law and the total value of the taxable supplies of goods
(excluding the value of the supplied excisable goods) during the
previous or current calendar year exceeds the registration
threshold laid down in Section 60, Paragraph two of this Law, the
taxable value shall be the amount which exceeds the specified
registration threshold. The calculated tax amount shall be
included in the transaction value.
(13) Paragraph twelve of this Section shall not apply if a
taxable person of another Member State supplies excisable goods.
In such case the taxable value shall be the value of the supplied
excisable goods.
[19 September 2013; 27 July 2017; 15 October 2020]
Section 35. Costs and Payments to be
Included in the Value of Supply of Goods and Service
(1) The value of supply of goods shall include all costs,
including costs of intermediation, insurance, packaging,
transport, and also all taxes, duties, and other mandatory
payments to be paid in accordance with laws and regulations,
except for the value added tax.
(2) The value of assembly or installation service of goods
shall be included in the value of supply of goods, if a supplier
or a third person acting on behalf of the supplier also installs
and assembles them.
(3) The value of service shall include all costs, and also all
taxes, duties, and other mandatory payments to be paid for the
supply of the relevant service in accordance with laws and
regulations, except for the value added tax.
(4) The value of State and local government financing shall be
included in the value of supply of goods and service if the
financing has been received to cover, in full or partly,
expenditures related to the production of goods or supply of
services and is directly related to the price of such goods or
services.
(5) Paragraph four of this Section shall not apply to:
1) the State and local government financing for budgetary
institutions;
2) the State and local government financing for compensation
of losses in public passenger transport inland.
Section 36. Taxable Value in
Carrying out Importation of Goods
(1) When importing goods, the customs value of the imported
goods shall be taxable to which the following costs shall be
added:
1) value of services if the services are directly related to
the importation of goods and if the value of such services
(including commission, and also transport, packing, and insurance
costs incurred until the first destination in inland) is not
included in the customs value of the imported goods;
2) costs of the transport of goods to the recipient of goods
in another Member State if such place is known at the time of
importation of goods;
3) taxes, duties, and other mandatory payments laid down in
laws and regulations that are calculated for the importation of
goods, except for the value added tax.
(2) If the destination of the supply of goods is not specified
in the transport bill of lading, then, upon determining the value
of the goods transport service to be included in the taxable
value, the address of the receipt of goods indicated in the
customs declaration shall be deemed as the place of receipt of
goods.
(3) Natural resources tax and car and motorcycle tax shall not
be included in the taxable value of goods.
(4) The taxable value of goods shall be the value of
processing or treatment service if the taxable person has brought
out any movable tangible property to process or treat it in the
third country or third territory in accordance with the laws and
regulations in the field of customs and then brings it again in
inland.
Section 37. Taxable Value in
Transactions Involving Immovable Property and Transactions for
Granting the Right of Superficies
(1) Taxable value in a transaction of supply of goods - unused
immovable property and building land - shall be the consideration
for the supplied immovable property.
(11) Taxable value in transactions on the right of
superficies shall be consideration payable for the right of
superficies.
(2) If the unused immovable property referred to in Section 1,
Clause 12, Sub-clause "c", "d", or "f" of this Law is being sold,
the difference between the sales value of a building or structure
and the value of such building or structure before the
commencement of the renewal, rebuilding or restoration works
shall be taxable.
(3) If a hire purchase contract on the supply of immovable
property has been entered into, but the provisions of the
contract are not fulfilled and therefore the immovable property
remains in the ownership of the supplier, the tax shall be
applied as for leasing transaction and shall be applied to all
previously made hire purchase payments (except the interest on
credit). Such leasing shall not be applicable to hire purchase
transactions of residential premises, if the residential premises
are not used for economic activity.
(4) If immovable property the content of which includes such
buildings, structures or groups of premises which are a cadastre
object and which conform to the status of an unused immovable
property are being sold, the part of consideration calculated in
proportion to the part of the unused immovable property against
all immovable property shall be taxable.
(5) If a registered taxable person sells immovable property
acquired at an auction, it has the right to take into account the
status of the immovable property determined by a bailiff in
accordance with Section 40 of this Law in determining the taxable
value. Such right may not be exercised, if the immovable property
of a registered taxable person to be sold as a result of
transactions does not conform to the status of an unused
immovable property or building land determined by a bailiff.
[6 November 2013; 20 April 2017; 30 May 2019]
Section 37.1 Taxable
Value in Transactions by a Multi-Purpose Voucher
The taxable value of the goods or services supplied in respect
of a multi-purpose voucher is equivalent to the consideration
paid for such voucher or, if information on the aforementioned
consideration is not available, - the monetary value indicated in
such multi-purpose voucher or related documents, excluding the
amount of tax in respect of the goods or services supplied.
[30 May 2019]
Section 38. Value of Service in
Financial Transactions
(1) The value of crediting and monetary loan allocation and
control service shall be the value of the interest on credit and
the consideration for the supplied service determined by the
grantor of credit or creditor.
(2) The value of service that is related to the trade of
payment instruments (currency), other money market instruments,
derived financial instruments and transferable securities within
the meaning of the Financial Instrument Market Law (including
future transactions of currency) shall be the difference between
the purchase and sales price of payment instruments (currency),
other money market instruments, derived financial instruments and
transferable securities, taking into account the total amount of
all the aforementioned transactions made in the taxation period.
When submitting the annual tax return, the registered taxable
person who has made the transactions referred to in this
Paragraph shall take into account the total amount of such
transactions for the taxation year by summing up positive and
negative values.
(3) If the holder of securities or capital shares sells the
transferable securities or capital shares for a price that
exceeds the nominal value of a transferable security or a capital
share, and the surcharge of an investment share (the difference
between the sales price and the nominal value of the sold
security or capital share) is not included in the capital of a
commercial company as a capital increase, the value of the
service shall be the difference between the sales price and
nominal value of the sold transferable security (capital share).
When submitting the annual tax return, the registered taxable
person who has made the transactions referred to in this
Paragraph shall take into account the total amount of such
transactions for the taxation year by summing up positive and
negative values.
Section 39. Values which are not
Included in the Taxable Value of the Transaction
(1) The taxable value of a transaction shall be determined by
taking into account the reduction in price (in the form of a
discount) that the supplier of goods or service has granted to
the recipient of goods or service at the time of supply of goods
or service.
(2) When issuing a tax invoice that amends the initial
invoice, the taxable value of a transaction shall be determined
by taking into account the reduction in price (in the form of a
discount) that the supplier of goods or service has granted to
the recipient of goods or service on the basis of an early
payment for the particular goods or service or any price discount
that is granted to the recipient of goods or service after
receipt of the particular goods or service.
(3) The following shall not be included in the taxable value
of the transaction:
1) amount which the supplier of goods or service provider has
received from the recipient of goods or service as reimbursement
of such costs which have been made on behalf and in the interests
of the recipient of goods or service;
2) deferred excise duty payment which is applied in accordance
the laws and regulations in the field of excise duty;
3) fee for the reusable beverage packaging to which the
deposit system is applied;
4) interest payments that the recipient of goods and service
pays to the supplier of goods or service for the possibility to
defer the payment for the for the provided supply of goods or
service for a definite time period.
[9 December 2021 / The new wording of Clause 3 of
Paragraph three shall come into force on 1 February 2022. See
Paragraph 41 of Transitional Provisions]
Section 40. Taxable Value of a
Transaction if the Property of a Registered Taxable Person is
Sold at an Auction by a Bailiff or Administrator of Insolvency
Proceedings
(1) If the property of a registered taxable person is sold at
an auction by a bailiff or administrator of insolvency
proceedings, the auction price of the property shall be taxable
in conformity with the taxable value laid down in the law.
(2) If the property of a registered taxable person is sold at
an auction by a bailiff, the taxable value shall be laid down on
the basis of the information provided by the registered taxable
person to the bailiff before announcing the auction.
(3) If a registered taxable person has failed to provide the
information referred to in Paragraph two of this Section and the
bailiff determines that on the day of announcing the auction the
property to be sold on auction is movable tangible property, the
auction price shall be taxable.
(4) If a registered taxable person has not provided the
information referred to in Paragraph two of this Section to a
bailiff and the bailiff determines that on the day of announcing
the auction the property to be sold on auction is an immovable
property, the bailiff shall assess whether the abovementioned
immovable property conforms to the status of unused immovable
property in accordance with Section 1, Clause 12 of this Law or
the status of building land in accordance with Section 1, Clause
1 of this Law.
(5) If a bailiff, when making the assessment laid down in
Paragraph four of this Section, determines that on the day of
announcing the auction the property to be sold on auction
conforms to the status of unused immovable property or building
land referred to in Section 1, Clause 12, Sub-paragraph "a", "b",
or "e" of this Law, the auction price shall be taxable.
(6) If a bailiff, when making the assessment laid down in
Paragraph four of this Section, determines that on the day of
announcing the auction the property to be sold on auction
conforms to the status of unused immovable property referred to
in Section 1, Clause 12, Sub-paragraph "c", "d", or "f" of this
Law, the difference between the acquisition price of the
immovable property according to the information available in the
Land Register and the auction price of such immovable property
shall be taxable.
(7) If a bailiff, when making the assessment laid down in
Paragraph four of this Section, determines that the property to
be sold on auction does not conform to the status of unused
immovable property in accordance with Section 1, Clause 12 of
this Law or the status of building land in accordance with
Section 1, Clause 1 of this Law, such transaction shall not be
taxable.
(71) If the right of superficies is auctioned, the
auction price shall be taxable.
(8) The Cabinet shall determine the information which the
bailiff must find out to determine the conformity of the
immovable property with the status of unused immovable property
or building land.
[30 May 2019]
Chapter
VI
Tax Rates
Section 41. Applicable Tax Rates
(1) The following rates shall be applicable to taxable
transactions:
1) standard rate of the tax in the amount of 21 per cent
(hereinafter - the standard tax rate), unless laid down otherwise
in this Law;
2) reduced tax rate in accordance with Section 42 of this
Law:
a) in the amount of 12 per cent;
b) in the amount of five per cent;
c) [1 January 2023 / See Paragraph 38 of Transitional
Provisions];
3) the tax rate in the amount of zero per cent in accordance
with Sections 43, 43.1, 44, 45, 46, 47, 48, 49, and 50
of this Law.
(2) If goods are supplied as a set, each of these goods shall
be subject to the corresponding tax rate as laid down in the
Law.
[22 November 2017; 7 January 2021 / Paragraph one,
Clause 2, Sub-clause "b" shall be in force until 31 December
2023. See Paragraph 30 of Transitional Provisions]
Section 42. Application of the
Reduced Tax Rate
(1) The reduced tax rate in the amount of 12 per cent shall be
applied to the supply of the following medicinal products:
1) medicinal products registered in accordance with the
registration procedure of the European Agency for the Evaluation
of Medicinal Products;
2) medicinal products included in the list of medicinal
products registered in the Republic of Latvia;
3) medicinal products for which the relevant permit of the
State Agency of Medicines is issued;
4) medicinal products the registration of which is not
necessary in accordance with the laws and regulations in the
field of pharmacy.
(2) The reduced tax rate in the amount of 12 per cent shall be
applied to the supply of medical devices (also complementary
parts, spare parts and accessories thereof) if they have been
placed on the market in accordance with the procedures laid down
in the laws and regulations regarding the registration of medical
devices, and they are usually used for the treatment or relief of
functional body disorders, as well as are intended only for
individual use by persons with functional body disorders.
(3) The reduced tax rate in the amount of 12 per cent shall be
applied to supplies of the following specialised food products
intended for infants if the product labelling indicates that the
product is intended for the nutrition of infants and a document
attesting the harmlessness of the product is appended
thereto:
1) milk and dairy products;
2) dry and liquid milk mixtures and dairy products of such
mixtures;
3) soy products, dry and liquid soy mixtures;
4) fruit, berry and vegetable juices, squashes and purees;
5) special easily digestible meat products and homogenised
mixed-ingredient products;
6) drinks for infant nutrition - juices diluted with tea,
specially prepared infant teas, water which is adapted for
infants and put in a special packaging (still);
7) therapeutic diet enteral nutrition products;
8) mixtures of aminoacids;
9) protein hydrolysates;
10) mixtures with low lactose content or without lactose;
11) gluten-free products for infants who suffer from coeliac
disease;
12) gluten-free products for infants who suffer from
phenylketonuria;
13) special products for infants who have hereditary pathology
of metabolism;
14) mixtures with lowered or elevated protein content and
products which do not contain proteins (for example, artificial
sago, flour, macaroni, bread, biscuits, groats, dry flakes);
15) products and mixtures with lowered or elevated fat
content;
16) products and mixtures with lowered or elevated
carbohydrate content.
(4) The reduced tax rate in the amount of 12 per cent shall be
applied to scheduled inland transport services of passengers and
their luggage.
(5) The reduced tax rate in the amount of five per cent shall
be applied to the supply of books, including school literature,
brochures, booklets and similar printed publications, images,
drawing and colouring books for children, printed notated music
and sheet music, maps and hydrographic or similar schemes in the
form of a printed publication or electronic publication,
including to the supply of books in online mode or by
downloading.
(6) [15 November 2021]
(7) The reduced tax rate in the amount of five per cent shall
be applied to the supply of press and other mass media
publications, including newspapers, magazines, newsletters, and
other periodical publications, notifications of information
agencies which are intended for public distribution, issued in
the form of a printed publication or electronic publication,
including in online mode or by downloading them, and also
publications in the Internet environment, and also to the
subscription fee thereof.
(8) Paragraphs five and seven of this Section shall not apply
to the supply of such books, press and other mass media
publications which are of erotic and pornographic nature, the
thematic content and task of which is publishing of advertising
or commercials, and which completely or mostly consist of
audiovisual content or music.
(9) The reduced tax rate in the amount of five per cent shall
also be applied to the annexes of the books, press and other mass
media publications referred to in Paragraphs five and seven of
this Section which are appended without additional charge and are
an integral part thereof if the information included in the annex
supplements the information provided in the printed publication
or electronic publication and it is not of the same nature and
content as referred to in Paragraph eight of this Section.
(10) The reduced tax rate in the amount of 12 per cent shall
be applied to accommodation services in tourist accommodation
sites.
(11) The reduced tax rate in the amount of 12 per cent shall
be applied to supplies of the following firewood, if the actual
consumer thereof is an inhabitant who purchases and consumes
firewood for domestic needs:
1) wood in the form of round timber, logs, branches, bundles
of branches or similar;
2) wood chips or shavings;
3) sawdust and wood residues;
4) sawdust and wood residues in the form of agglomerated or
non-agglomerated briquettes, granules or similar.
(12) The reduced tax rate in the amount of 12 per cent shall
be applied to supplies of thermal energy, if the actual consumer
thereof is an inhabitant who purchases and consumes thermal
energy for domestic needs.
(13) If a natural person purchases and consumes thermal energy
and firewood for the needs of his or her economic activity, also
for his or her professional activity, he or she shall notify a
supplier or a person who ensures administration of the
residential house of the purpose of use of the thermal energy and
firewood.
(14) Apartment management departments, housing departments,
houseowners and other persons who, in accordance with the
entered-into contract, receive a fee together with the tax for
the goods supplied in Paragraphs eleven and twelve of this
Section and transfer it in full amount to registered taxable
persons who have supplied such goods or services, shall apply the
reduced tax rate in the amount of 12 per cent when issuing tax
invoices to inhabitants.
(15) [22 November 2017]
(16) The reduced tax rate in the amount of five per cent shall
be applied to supplies of such food products which are the fresh
fruits, berries and vegetables, including washed, peeled,
shelled, cut and packaged, but not thermally or otherwise
processed (for example, frozen, salted, dried), referred to in
the Annex to this Law.
17) [1 January 2023 / See Paragraph 38 of Transitional
Provisions]
18) [1 January 2023 / See Paragraph 38 of Transitional
Provisions]
[22 November 2017; 7 January 2021; 15 November 2021 /
Paragraphs seventeen and eighteen shall be applicable from 25
December 2020 and be in force until 31 December 2022. Paragraph
sixteen shall be in force until 31 December 2023. See Paragraphs
30 and 38 of Transitional Provisions]
Section 42.1 Application
of the Reduced Tax Rate to Import of Goods and Acquisition of
Goods in the Territory of the European Union
The reduced tax rate shall also be applied to import of the
goods referred to in Paragraph 42 of this Law which are subject
to the reduced tax rate and to the acquisition of such goods in
the territory of the European Union.
[22 November 2017]
Section 43. Application of the Zero
Per cent Tax Rate to Supplies of Goods
(1) The zero per cent tax rate shall be applied to exportation
of goods.
(2) The zero per cent tax rate shall be applied to goods
dispatched to a fiscal representative within the framework of
exportation of goods if such goods are dispatched for the purpose
of further exportation and they are located in a place specified
in the laws and regulations in the field of customs or in an
excise duty warehouse.
(3) The zero per cent tax rate shall be applied to supply of
the following goods to customs warehouse and free zones:
1) supply of such goods which are brought into the territory
of the European Union from third countries or third territories
and which are not released for free circulation;
2) supply of such goods for which exportation procedure is
initiated in another Member State and which are brought inland
for further exportation.
(4) The zero per cent tax rate shall be applied to supply of
goods in the territory of the European Union, if both of the
following conditions are conformed to:
1) the recipient of goods indicated in goods transport
accompanying documents and tax invoice has presented a
registration number of a taxable person of another Member State
valid at the time of transaction;
2) goods are dispatched or transported from inland to
destination in another Member State and it is attested by goods
transport accompanying documents at the disposal of the supplier
of goods.
(5) [6 November 2013]
(6) The zero per cent tax rate shall be applied to supply of
new means of transport to any person of another Member State.
(7) The zero per cent tax rate shall be applied to supplies of
goods carried out in duty-free shops to natural persons who are
departing from inland to third countries or third
territories.
[6 November 2013; 10 February 2022]
Section 43.1 Application
of the Zero Per cent Tax Rate to a Chain of Transactions
(1) For the purpose of this Section:
1) a chain of transactions is such successive supplies of
goods which are covered by one transportation in the territory of
the European Union;
2) intermediary of a chain of transactions is a supplier of
goods in a chain of transactions who dispatches or transports
goods to another Member State itself or with the intermediation
of such third person which acts on its behalf and who is not the
first supplier of goods in the chain of transaction.
(2) If the same goods are supplied successively and the
abovementioned goods are dispatched or transported from one
Member State to another Member State right from the first
supplier of goods in the chain of transactions to the last
supplier of goods, the zero per cent tax rate shall be applied
only to the supply of goods of the intermediary of the chain of
transactions.
(3) Paragraph two of this Section shall not be applied and
zero per cent tax rate shall be applied to a supply of goods
provided by an intermediary of a chain of transactions if the
intermediary of the chain of transaction has notified its
supplier of goods of its registration number of a taxable person
which has been granted thereto in a Member State from which the
goods were dispatched or transported.
(4) This Section shall not be applied to the transactions
referred to in Section 6, Paragraphs five and six of this
Law.
[28 November 2019; 15 October 2020]
Section 44. Application of the Zero
Per cent Tax Rate to Acquisition of Goods Made by a Fiscal
Representative in the Territory of the European Union
The zero per cent tax rate shall be applied to acquisition of
goods made by a fiscal representative in the territory of the
European Union if the relevant goods are supplied to such fiscal
representative for the purpose of exporting and are located in a
place specified in the laws and regulations in the field of
customs or in an excise duty warehouse.
[10 February 2022]
Section 45. Application of the Zero
Per cent Tax Rate to Importation of Goods
(1) The zero per cent tax rate shall be applied to importation
of goods if a registered taxable person who is acting on behalf
of a registered taxable person of another Member State supplies
such goods in unchanged form to a recipient of goods which is a
registered taxable person of another Member State to another
Member State within 30 calendar days after their importation.
(2) The zero per cent tax rate shall be applied to importation
of goods if the fiscal representative who is representing a
registered taxable person of a third country or third territory
or a registered taxable person of another Member State supplies
such goods to a recipient of goods which is a registered taxable
person of another Member State to another Member State within 30
calendar days after their importation.
(3) If a registered taxable person applies the zero per cent
tax rate in accordance with Paragraph one or Paragraph two of
this Section, the documents attesting that the imported goods are
or will be dispatched to another Member State shall be at the
disposal thereof.
(4) The State Revenue Service is entitled to request documents
proving that the imported goods are intended to be transported or
dispatched to another Member State from the registered taxable
person who applies the zero per cent tax rate in accordance with
Paragraph one or two of this Section.
(5) After importation of goods by dispatch to another Member
State, the registered taxable person referred to in Paragraph one
or two of this Section shall indicate the supply of goods in its
tax return and report on the supplies of goods and services in
the territory of the European Union.
(6) The Cabinet shall determine the procedures for the
application of the zero per cent tax rate in the cases referred
to in Paragraphs one and two of this Section.
Section 46. Application of the Zero
Per cent Tax Rate to Services
(1) The zero per cent tax rate shall be applied if services
are:
1) directly related to exportation of goods, including also
exportation of such goods for which customs procedure has been
initiated in another Member State;
2) directly related to importation of goods when the value of
such services are to be included in the taxable value of the
transaction in accordance with Section 36, Paragraph one of this
Law;
3) directly related to transit traffic operations;
4) supplied in the free zone or customs warehouse and are
directly related to goods brought in the territory of the
European Union from third countries or third territories and are
not released for free circulation.
(2) The Cabinet shall determine the procedures for the
application of the zero per cent tax rate for the services
referred to in Paragraph one of this Section.
(3) The zero per cent tax rate shall be applied to passenger
transport operations on international routes, also to passenger
transport operations to other Member States, if a passenger
crosses the State border of the Republic of Latvia, and also to
the luggage transport operations which the passenger carries with
him and to his vehicle transport operations with which he is
travelling.
(4) The zero per cent tax rate shall be applied to
intermediary services which are supplied by the intermediary by
selling tickets for the passenger transport operations on
international routes referred to in Paragraph three of this
Section.
Section 47. Application of the Zero
Per cent Tax Rate to Supplies of Vessels, Supplies of Goods to
Vessels and Services Related to Such Supplies
(1) The zero per cent tax rate shall be applied to supply and
importation of such vessels which are used for:
1) navigation in international waters and which are carrying
passengers for reward or used for the purpose of commercial,
fishing or industrial activities;
2) rescue or assistance at sea;
3) inshore fishing.
(2) The zero per cent tax rate shall also be applied to supply
and importation of spare parts for the vessels referred to in
Paragraph one of this Section and equipment, including fishing
equipment, incorporated or used therein, and also to fuelling of
such vessels.
(3) The zero per cent tax rate shall be applied to:
1) supply of goods intended for the provisioning of the
vessels referred to in Paragraph one, Clauses 1 and 2 of this
Section;
2) modification, repair, technical maintenance, chartering and
leasing of the vessels referred to in Paragraph one of this
Section;
3) repair, technical maintenance and leasing of equipment,
including fishing equipment, incorporated or used in vessels
referred to in Paragraph one of this Section;
4) services which are not referred to in this Paragraph and
which are supplied in order to meet the direct needs of the
vessels referred to in Paragraph one of this Section or of their
cargoes, including services provided by ship agents.
(4) The zero per cent tax rate shall be applied to fuelling
and supply of goods intended for the provisioning of fighting
ships, falling within the combined nomenclature code 8906 10 00
laid down in Annex I to Council Regulation (EEC) No 2658/87 of 23
July 1987 on the tariff and statistical nomenclature and on the
Common Customs Tariff (hereinafter - the Combined Nomenclature),
and which are leaving the state and bound for ports or anchorages
in other Member States or third countries, or third
territories.
Section 48. Application of the Zero
Per cent Tax Rate to Supplies of Aircraft, Supplies of Goods to
Aircraft and Services Related to Such Supplies
(1) The zero per cent tax rate shall be applied to supply and
importation of such aircraft which are used by airlines operating
in return for consideration chiefly on international routes.
(2) The zero per cent tax rate shall also be applied to supply
and importation of spare parts for the aircraft referred to in
Paragraph one of this Section and equipment incorporated or used
therein, and also to fuelling of such aircraft.
(3) The zero per cent tax rate shall be applied to:
1) supply of goods intended for the provisioning of the
aircraft referred to in Paragraph one of this Section;
2) modification, repair, technical maintenance, chartering and
leasing of the aircraft referred to in Paragraph one of this
Section;
3) repair, technical maintenance and leasing of equipment
incorporated or used in the aircraft referred to in Paragraph one
of this Section;
4) services which are not referred to in this Paragraph and
which are supplied in order to meet the direct needs of the
aircraft referred to in Paragraph one of this Section or of their
cargoes, including services provided by aircraft agents.
(4) It shall be considered that an airline is operating
chiefly on international routes, if both of these conditions are
conformed to:
1) annual turnover of the airline on international routes is
at least 80 per cent of the total turnover;
2) number of the airline's routes on international routes is
at least 80 per cent of the total turnover.
Section 49. Application of the Zero
Per cent Tax Rate to Supplies of Goods if a Natural Person of
Third Country or Third Territory whose Permanent Place of
Residence is not in the Territory of the European Union Brings
the Goods Acquired Inland out of the Territory of the European
Union
(1) The zero per cent tax rate shall be applied in accordance
with the procedures laid down by the Cabinet to supplies of goods
if a natural person of a third country or third territory whose
permanent place of residence is not in the territory of the
European Union brings the goods acquired inland out of the
territory of the European Union.
(2) The zero per cent tax rate shall be applied indirectly by
refunding the tax paid.
(3) A registered taxable person who meets the criteria laid
down by the Cabinet shall refund the tax paid for the goods
acquired inland to a natural person of a third country or third
territory whose permanent place of residence is not in the
territory of the European Union if:
1) the value of goods (without tax) supplied by the supplier
of goods within one day is not less than EUR 35.00;
2) the natural person brings out the goods from the territory
of the European Union.
(4) The Cabinet shall determine:
1) the procedures for the application of the zero per cent tax
rate to supplies of goods if a natural person of third country or
third territory whose permanent place of residence is not in the
territory of the European Union brings the goods acquired inland
out of the territory of the European Union;
2) the criteria which determine the right of a registered
taxable person to refund the tax;
3) the procedures for the tax refund and the procedures for
completing a submission of a registered taxable person and
submitting to the State Revenue Service;
4) the procedures by which the State Revenue Service shall
examine a submission of a registered taxable person and grant,
suspend and cancel a permission for a registered taxable person
to refund the tax paid for the goods acquired inland to natural
persons of third countries or third territories whose permanent
place of residence is not in the territory of the European
Union;
5) the procedures by which a registered taxable person and a
seller of goods shall settle mutual accounts and accounts with
the State budget.
[19 September 2013; 6 November 2013; 23 November 2016; 24
November 2020]
Section 50. Application of the Zero
Per cent Tax Rate to Supplies of Goods and Services which are
Provided to Diplomatic and Consular Missions, International
Organisations, European Union Institutions and North Atlantic
Treaty Organisation (NATO)
(1) The zero per cent tax rate shall be applied indirectly, by
refunding the tax paid, to supplies of goods and services which
are provided in inland to the following bodies registered in the
Republic of Latvia:
1) diplomatic and consular missions of third countries,
diplomatic and consular agents thereof, administrative technical
personnel, and also family members of the abovementioned persons
- in conformity with the parity principle;
2) diplomatic and consular missions of other Member States,
diplomatic and consular agents thereof, administrative technical
personnel, and also family members of the abovementioned
persons;
3) European Union institutions or their representations and
the persons related thereto or bodies established by legal acts
of the European Union to which Protocol on the Privileges and
Immunities of the European Union of 8 April 1965 is applied -
within the limits and under the conditions laid down in the
abovementioned protocol and implementation agreements or
headquarter agreements thereof;
4) international bodies which are not referred to in Paragraph
one, Clause 3 of this Section and which have been recognised as
such by the competent authorities of the Republic of Latvia, and
members of such bodies - within the limits and under the
conditions laid down by the international conventions
establishing the bodies or by headquarters agreements;
5) international organisations or their representations, and
the employees of such organisations or their representations who
have a diplomatic status in the territory of the Republic of
Latvia - within the limits and under the conditions laid down by
the international conventions establishing such organisations or
by headquarters agreements.
(2) The zero per cent tax rate shall be applied indirectly, by
refunding the tax paid, to supplies of goods and services which
are provided in inland to the:
1) units of the armed forces of other States party to the
North Atlantic Treaty Organisation (NATO), including for the
needs of civilian staff accompanying them, or for supplying
messes or canteens of the units of such armed forces when such
forces take part in the common defence effort inland;
2) units of the armed forces of other Member States, including
for the needs of civilian staff accompanying them, or for
supplying messes or canteens of the units of such armed forces
when such forces take part in the defence effort inland carried
out for the implementation of the European Union activity under
the common security and defence policy.
(21) The zero per cent tax rate shall be applied
directly on the basis of a certificate approved by the competent
authority of the relevant Member State or by the competent
authority of the Republic of Latvia for supplies of goods and
services acquired or received inland by the European Commission,
an agency and a body established under legal acts of the European
Union while performing the tasks assigned thereto by legal acts
of the European Union in order to respond to the COVID-19
pandemic, except where the goods and services acquired or
received are used by the abovementioned persons, immediately or
at a later date, for the purpose of onward supply for
consideration (in such case, if the conditions of this Paragraph
cease to apply, the abovementioned persons shall inform the State
Revenue Service thereof and the supply of such goods and services
shall be taxed in accordance with the conditions applicable at
the time of the transaction).
(3) Competent authorities of the Republic of Latvia shall
confirm a Value Added Tax and Excise Duty Exemption Certificate
which conforms to Council Implementing Regulation (EU) No
282/2011 of 15 March 2011 laying down implementing measures for
Directive 2006/112/EC on the common system of value added tax
(hereinafter - the certificate) which is drawn up for the
acquisition of goods and receipt of services in another Member
State or inland.
(4) The zero per cent tax rate shall be applied directly on
the basis of a certificate approved by the competent authority of
the relevant Member State for supplies of goods and services
which are provided inland to the following bodies registered in
other Member States:
1) diplomatic and consular missions of third countries, their
diplomatic and consular agents, administrative technical
personnel, and also family members of the abovementioned
persons;
2) diplomatic and consular missions of the Member States,
their diplomatic and consular agents, administrative technical
personnel, and also family members of the abovementioned
persons;
3) European Union institutions or representations thereof in
the territory of the European Union and persons related thereto,
the European Atomic Energy Community, the European Central Bank,
the European Investment Bank or bodies established by legal acts
of the European Union, to which Protocol on the Privileges and
Immunities of the European Union of 8 April 1965 is applied -
within the limits and under the conditions laid down in the
abovementioned protocol and implementation agreements or
headquarter agreements thereof;
4) international bodies which are not referred to in Paragraph
four, Clause 3 of this Section and which have been recognised as
such by the competent authorities of the relevant Member State,
and members of such bodies - within the limits and under the
conditions laid down by the international conventions
establishing such bodies or by headquarters agreements;
5) international organisations or their representations and
employees of such organisations or their representations who have
a diplomatic status in the territory of the relevant Member State
- within the limits and under the conditions laid down by the
international conventions establishing such organisations or by
headquarters agreements.
(5) The zero per cent tax rate shall be applied directly on
the basis of a certificate approved by the competent authority of
the relevant Member State for supplies of goods and services
which are provided inland to the following:
1) units of the North Atlantic Treaty Organisation (NATO) in
accordance with the international agreement entered into, if it
is paid for the goods supplied and services supplied from the
resources of the North Atlantic Treaty Organisation;
2) units of the armed forces of other States party to the
North Atlantic Treaty Organisation (NATO), including for the
needs of civilian staff accompanying them, or for supplying
messes or canteens of the units of such armed forces when such
forces take part in the common defence effort inland;
3) units of the armed forces of other Member States, including
for the needs of civilian staff accompanying them, or for
supplying messes or canteens of the units of such armed forces
when such forces take part in the defence effort inland carried
out for the implementation of the European Union activity under
the common security and defence policy.
(6) The zero per cent tax rate shall be applied directly on
the basis of a certificate approved by the competent authorities
of the Republic of Latvia for supplies of goods and services
which are provided inland to the persons referred to in
Paragraphs one and two of this Section if:
1) such persons are building an immovable property inland for
official needs - to the acquisition of goods intended for the
construction of such immovable property and to the supply of
services during implementation of the construction project,
indicated in the certificate;
2) such persons or persons related thereto acquire excisable
goods from a excise duty warehouse inland - to the acquisition of
excisable goods specified in the certificate.
(7) The zero per cent tax rate shall be applied directly on
the basis of a certificate approved by the competent authorities
of the Republic of Latvia for supplies of goods and services
which are provided inland to the following:
1) European Union institutions registered in the Republic of
Latvia - within the limits and under the conditions laid down by
headquarters agreements;
2) the persons referred to in Paragraph five of this Section
arriving in the Republic of Latvia from a country in which the
certificate cannot be drawn up - to the acquisition of goods and
receipt of services specified in the certificate.
(71) The zero per cent tax rate shall be applied
directly to:
1) the supplies of goods and services that are provided inland
to the members of the Allied Headquarters recognised in the
Republic of Latvia and dependants thereof, except for the
citizens and permanent residents of the Republic of Latvia, in
the shop of the Allied Headquarters in accordance with conditions
and restrictions of the Agreement between the Republic of Latvia
and the Supreme Headquarters Allied Powers Europe and
Headquarters, Supreme Allied Commander Transformation to
Supplement the Paris Protocol;
2) the supplies of fuel inland to the United States Embassy in
the Republic of Latvia and diplomatic and consular agents and
administrative technical personnel thereof.
(8) The Cabinet shall determine:
1) the procedures for the application of the zero per cent tax
rate to supplies of goods and services provided to diplomatic and
consular missions, international organisations, European Union
institutions, the North Atlantic Treaty Organisation (NATO),
units of armed forces of other States party to the North Atlantic
Treaty Organisation (NATO), units of armed forces of other
European Union Member States, and the European Commission, an
agency and a body established under the legal acts of the
European Union and which acquires goods and services while
performing the tasks assigned thereto by legal acts of the
European Union in order to respond to the COVID-19 pandemic;
2) the procedures for the approval of a certificate and the
procedures by which the right to use the certificate without
approval shall be granted or withdrawn;
3) the procedures by which the certificate approved by the
competent authorities of the Republic of Latvia shall be used
inland;
4) the procedures by which the zero percent tax rate shall be
applied to:
a) the supplies of goods and services that are provided inland
to the members of the Allied Headquarters recognised in the
Republic of Latvia and dependants thereof, except for the
citizens and permanent residents of the Republic of Latvia, in
the shop of the Allied Headquarters;
b) the supplies of fuel inland to the United States Embassy in
the Republic of Latvia and diplomatic and consular agents and
administrative technical personnel thereof.
[20 April 2017; 10 February 2022 / Paragraph
2.1 shall apply from 1 January 2021. Clause 2 of
Paragraph two shall apply from 1 July 2022. Clause 3 of Paragraph
five and the new wording of the introductory part of Paragraph
six shall come into force on 1 July 2022. See Paragraphs 42, 43,
and 44 of Transitional Provisions]
Section 51. Restrictions on
Application of the Zero Per cent Tax Rate
(1) The zero per cent tax rate shall not be applied if a
registered taxable person who has made a transaction to which the
zero per cent tax rate is to be applied in accordance with
Sections 43, 44, 45, 46, 47, and 48 of this Law cannot present
documents attesting exportation of goods or documents which
attest the application of the zero per cent tax rate.
(2) The Cabinet shall determine the documents which are
considered documents attesting the exportation of goods referred
to in Paragraph one of this Section and documents which attest
the application of the zero per cent tax rate.
(3) The zero per cent tax rate shall not be applied if a
registered taxable person has failed to comply with the time
limit for the dispatch of goods laid down in Section 45,
Paragraphs one and two of this Law and cannot justify it with
objective forced circumstances.
(4) The zero per cent tax rate shall not be applied if a
registered taxable person has received advance payment for the
goods or service indicated in a tax invoice on request of advance
payment to which the zero per cent tax rate is to be applied in
accordance with Section 43, Paragraphs one, two, three, six, and
seven, Sections 44, 45, 46, 47, and 48, but within six months
from the day of receipt of advance payment the goods have not
been dispatched or supply of service has not been commenced.
(5) Paragraph four of this Section shall not be applied if a
registered taxable person has, in accordance with the concluded
contracts, received an advance payment for the supply of such
goods the technological process of manufacture (production) of
which is more than six months, or if the supply of goods or
service has been commenced at the time of receipt of the advance
payment.
(6) The zero per cent tax rate shall not be applied to supply
of goods in the territory of the European Union if the supplier
of goods has not submitted a report on the supply of goods and
services in the territory of the European Union or has submitted
such report but has not indicated complete and true information
on the relevant transaction. This condition shall not apply to
the case when the supplier of goods provides the State Revenue
Service sufficient justification that could justify the
abovementioned action.
[28 November 2019]
Chapter
VII
Exemptions from Tax
Section 52. Non-taxable Supplies of
Goods and Services
(1) The following supplies of goods and services shall not be
taxable:
1) the postal services supplied by a supplier of the universal
postal service:
a) the collection, sorting, carriage, and delivery of such
letter-post items the weight of which does not exceed two
kilograms;
b) the collection, sorting, carriage and delivery of such
postal parcel items the weight of which does not exceed 10
kilograms;
2) means of postal prepayment which are put into circulation
and supplied in accordance with the Postal Law;
3) the following medicinal services:
a) medicinal services determined by the Cabinet and supplied
by a medical treatment institution using the medical technologies
approved in accordance with the procedures laid down in the laws
and regulations (except for forensic medicine expert-examination
in criminal cases or civil cases, disability expert-examination
which is performed by the State Medical Commission for the
Assessment of Health Condition and Working Ability and the
divisions thereof, provision of opinions on the quality of
medical care and working ability expert-examination in medical
treatment institutions, evaluation of the health condition of
military persons for granting the service pension, as well as
cosmetic surgeries and cosmetologist services without medicinal
indications and solarium services);
b) mandatory health examinations which are necessary on
recruitment and health examinations which are necessary due to
environmental factors harmful to health and special work
conditions, and also health examinations which are necessary for
a person in order to exercise any rights granted or obligations
specified in another law or regulation;
4) the following services related to medicine which are
necessary to ensure the supply of medicinal services laid down in
Clause 3 of this Paragraph:
a) transport of a patient by means of a vehicle that is
specially equipped with medical devices the samples of which have
been registered in accordance with the procedures laid down in
laws and regulations;
b) supply of catering services which is ensured by a medical
treatment institution to a patient during medical treatment
process;
c) accommodation which is ensured by a medical treatment
institution to a patient and a person who stays with the
patient;
d) assessment of conformity of the medical treatment
institutions with the mandatory requirements and services of
certification of medical treatment institutions;
e) clinical diagnosis laboratory services which are ensured in
other medical treatment institutions;
5) the supplies of human organs, milk, and human blood
(including blood plasma and blood cells);
6) dental services;
7) the services provided by dental technicians and dental
hygienists, and also the artificial teeth supplied by dentists
and dental hygienists;
8) [20 April 2017];
9) social care, vocational and social rehabilitation, social
assistance and social work services that are supplied to
inhabitants by persons who are registered in the Register of
Social Service Providers, and also catering services which are
supplied by a social service provider in accordance with its
programmes;
10) the supplies of goods and services for the purposes of
protecting children and young persons provided by public benefit
organisations;
11) services of stay of children and preschool education
services supplied by preschool educational institutions;
12) services of State recognised educational institutions in
the field of general education, vocational education, higher
education and interest-related education, and also supply of
services and goods closely linked to such educational services
provided by the abovementioned educational institutions;
13) educational services the supply of which to the
educational institutions referred to in Clause 12 of this
Paragraph is ensured by educational institutions of other
countries;
14) educational services supplied by teachers giving private
classes within the framework of general education, vocational
education and higher education programmes;
15) the part of a schoolchildren transport service which is
financed from local government budgets and which is carried out
by licensed carriers in accordance with the law On Local
Governments;
16) services of occupational training or retraining of
unemployed persons organised by the State Employment Agency;
17) the following cultural services:
a) theatre and circus performances;
b) concerts;
c) events intended for children, events of amateur art groups,
and events intended for charity purposes;
d) visits to State recognised museums, libraries, exhibitions,
zoological gardens and botanical gardens and cultural and
cultural education measures organised by such institutions;
e) services of provision of public access to and use of the
information present in the library collection;
18) the royalty received by the author for his work and use
thereof, and also the consideration received by the performer and
phonogram producer for the subject of related rights and use
thereof;
19) the supply of gold, coins and bank notes to Latvijas
Banka;
20) insurance and reinsurance services, including related
services ensured by an insurance or reinsurance intermediary or
an auxiliary insurance service intermediary;
21) the following financial transactions:
a) crediting and monetary loan allocating (including
intermediation), and also credit management, carried out by the
creditor;
b) transactions with credit guarantees or any other security
for money (including intermediation), and also the management of
credit guarantees carried out by the creditor;
c) services (including intermediation) which apply to
investment and current accounts and attraction of other repayable
funds, making of payments in cash and non-cash means of payment,
fiduciary (trust) operations;
d) services (including intermediation) which apply to issuing
and servicing of payment instruments, as well as trade (including
intermediation) with payment instruments and other money market
instruments, except for the payment instruments which are
supplied for collecting purposes or which contain precious
metal;
e) services (including intermediation) which apply to
investments in capital, derivative financial instruments and
securities (including their emission, storage, alienation,
supervision carried out by the custodian bank, but except for
other supervision), except for investment in capital, management
of derivative financial instruments and securities;
22) management of investment funds, State funded pension
scheme investments, closed and open pension funds, risk capital
funds, and also insurance companies and other investment
portfolios, which are collective investments or are established
on the basis of the requirements laid down by such funds
(including technical reserves and guarantee funds), if it is
related to lawful or actual decision-making powers;
23) gambling, drawings by lot and lotteries, including the
gambling and drawings by lot that are organised via electronic
communications services;
24) sale of immovable property, except for the sale of unused
immovable property and building land;
25) the following services supplied to inhabitants:
a) residential tenancy (except for accommodation services at
accommodation facilities - hotels, motels, guest houses, houses
used for rural tourism, camp sites and tourist
accommodations);
b) [30 November 2015];
26) service for which the owner of the building or structure
has an obligation to pay consideration for the lawful land use
rights when the building or structure is to be considered an
independent property object in accordance with the normative
regulation in the field of civil law.
(2) Exemption from the tax in respect of the services referred
to in Paragraph one, Clause 17 of this Section shall be applied
also by persons other than public persons, if in supplying such
services the profit is not gained on regular basis. If profit is
gained, exemption shall be applied in cases when the profit
gained is channelled or invested for the improvement of the
supply of such services.
(3) The supply of goods shall not be taxable if a registered
taxable person has not deducted the input tax for the relevant
goods and the goods are acquired or used for ensuring the
transactions referred to in Paragraph one of this Section or for
the performance of State administration tasks.
(31) The supply of goods for the acquisition or use
of which a registered taxable person has not deducted the input
tax as they were intended for other purposes and not for the
provision of taxable transactions (including luxury goods, goods
for the private needs of a registered taxable person, its staff
or other persons and entertainment) shall not be taxable.
(32) [30 May 2019]
(33) [30 May 2019]
(34) [30 May 2019]
(4) The Cabinet shall determine the procedures for the
application of exemption from the tax to the following supplies
of goods and services:
1) [28 November 2019];
2) services of State recognised educational institutions in
the field of general education, vocational education, higher
education and interest-related education, and also supply of
services and goods closely linked to such educational services
provided by the abovementioned educational institutions;
3) educational services supplied by teachers giving private
classes within the framework of general education, vocational
education and higher education study programmes;
4) cultural services;
5) financial transactions;
6) gambling, drawings by lot and lotteries;
7) supply of immovable property;
8) services of the rent residential premises supplied to
inhabitants;
9) medicinal services.
[6 November 2013; 12 June 2014; 30 November 2015; 20 April
2017; 30 May 2019; 20 June 2019; 28 November 2019; 15 November
2021 / See Paragraphs 39 and 40 of Transitional
Provisions]
Section 52.1 Non-taxable
Services Supplied by an Independent Group of Persons
(1) The services provided by an independent group of persons
to the members of such group shall be exempt from the tax if all
of the following conditions are met:
1) members of this group are persons who make the non-taxable
transactions referred to in Section 52, Paragraph one of this
Law, except for Section 52, Paragraph one, Clauses 2, 18, 19, 20,
21, 22, 23, 24, and 25 of this Law, or activities in respect of
which this person is not a taxable person;
2) services are necessary only for ensuring the non-taxable
transactions made by the members of such group or for ensuring
such activities in respect of which the member of such group is
not a taxable person;
3) the value of services is their cost price;
4) costs of services are covered by members of such group
according to their share in the total expenses;
5) situation of market participants performing competitive
activities or transactions (current or potential) in the field of
competition is not affected significantly and thus significant
distortions of competition are not caused.
(2) In order to apply Paragraph one of this Section, all of
the following conditions must be met:
1) there is a written agreement between the independent group
of persons and its members on the supply of services;
2) members of the independent group of persons are registered
as taxable persons;
3) if a member of the independent group of persons makes
taxable transactions as well, he or she shall keep records
justifying that services received from the independent group of
persons are being used for transactions exempt from tax in
accordance with Section 52, Paragraph one of this Law, except for
Section 52, Paragraph one, Clauses 2, 18, 19, 20, 21, 22, 23, 24,
and 25 of this Law, or ensuring such activities in respect of
which the member of this group is not a taxable person.
(3) Before commencing the supply of services to the members of
the group, the independent group of persons shall inform the
State Revenue Service of the establishment of the group and
members of such group, concurrently submitting written agreements
on the supply of services provided by the independent group of
persons to the members of such group.
[30 May 2019 / See Paragraphs 32 and 33 of
Transitional Provisions]
Section 52.2 Non-taxable
Transactions of Distance Selling of Goods
The supply of goods to a taxable person who, in accordance
with the provisions of Section 6, Paragraph six of this Law,
shall be deemed to have received and supplied the goods itself to
a person who is not a taxable person shall not be taxable.
[10 February 2022]
Section 53. Non-taxable Importation
of Goods
(1) The importation of goods referred to in Section 52,
Paragraph one of this Law shall not be taxable.
(2) The importation of gas transported through the natural gas
system or networks which are connected to such system, or gas
cargo ships, and which is pumped in any natural gas system or
long-distance pipeline network, the importation of electricity,
thermal energy or cooling energy through thermal energy or
cooling networks shall not be taxable.
(3) The importation of goods which is not subject to customs
duty in accordance Council Regulation (EC) No 1186/2009 of 16
November 2009 setting up a Community system of reliefs from
customs duty (codified version), except for the consignments of
goods referred to in Article 23 of the Regulation, shall not be
taxable.
(4) [15 October 2020]
(5) [15 October 2020]
(6) [19 September 2013]
(7) The importation of goods shall not be taxable if it is
carried out by:
1) European Union institutions or their representations in the
territory of the European Union, the European Atomic Energy
Community, the European Central Bank, the European Investment
Bank or bodies established by legal acts of the European Union,
to which Protocol on the Privileges and Immunities of the
European Union of 8 April 1965 is applied - within the limits and
under the conditions laid down in the abovementioned protocol and
implementation agreements or headquarter agreements thereof;
2) international bodies, organisations which are not referred
to in Clause 1 of this Paragraph and which have been recognised
as such by the competent authorities of the relevant Member
State, and members of such bodies - within the limits and under
the conditions laid down by the international conventions
establishing the bodies or by headquarters agreements;
3) international organisations or their representations in the
territory of the European Union - within the limits and under the
conditions laid down by the international conventions
establishing the organisations or by headquarters agreements;
4) units of the North Atlantic Treaty Organisation (NATO) for
the needs of the implementation of an international agreement or
for the needs of other units of armed forces of other States
party to the North Atlantic Treaty Organisation (NATO), including
for the needs of civilian staff accompanying them, or for
supplying messes or canteens of the units of such armed forces
when such forces take part in the common defence effort
inland;
5) diplomatic and consular missions of Member States and third
countries registered in the Republic of Latvia to which Protocol
on the Privileges and Immunities of the European Union of 8 April
1965 is applied if the goods are exempted from the customs duty
in accordance with Paragraph three of this Section;
6) the European Commission, an agency and a body established
under legal acts of the European Union if it imports goods while
performing the tasks assigned thereto by legal acts of the
European Union in order to respond to the COVID-19 pandemic,
except where the imported goods are used by the abovementioned
persons, immediately or at a later date, for the purposes of
onward supply for consideration (in such case, if the conditions
of this Paragraph cease to apply, the abovementioned persons
shall inform the State Revenue Service thereof and the
importation of such goods shall be taxed in accordance with the
conditions applicable at the time of importation);
7) units of the armed forces of other Member States for their
needs, including for the needs of civilian staff accompanying
them, or for supplying messes or canteens of the units of such
armed forces when such forces take part in the defence effort
inland carried out for the implementation of the European Union
activity under the common security and defence policy.
(8) The importation into ports by a person operating in the
fisheries sector of its catches, unprocessed or after undergoing
preservation for marketing, but before supplied, shall not be
taxable.
(9) Re-importation of goods in inland shall not be taxable if
it is carried out by a person who exported the goods and if such
goods conform to the requirements which are laid down in respect
of exemption from customs duties.
(10) The importation of such goods which are brought in inland
in the personal luggage of a natural person who is arriving from
a third country or third territory (hereinafter in this Section -
the traveller) shall not be taxable if such importation of goods
is not carried out for commercial purposes.
(11) The luggage which a traveller presents to the customs
authorities at the time of arrival, as well as the luggage which
the traveller presents later to the same customs authorities when
proving that such luggage was registered at the time of departure
as the luggage to be carried with him in the company providing a
journey, shall be deemed as a personal luggage referred to in
Paragraph ten of this Section.
(12) It shall be deemed that the importation of goods is not
carried out for commercial purposes within the meaning of
Paragraph ten of this Section if the importation of goods
conforms to all the following conditions referred to in this
Paragraph of Section:
1) the importation of goods is not carried out on regular
basis;
2) only the goods intended for the traveller's personal or
family use or for gift are imported.
(13) The type and amount of goods referred to in Paragraph
twelve of this Section shall be such which do not point to
importation of the goods for commercial purposes.
(14) The goods which are imported by a traveller in his
personal luggage shall not be taxable, taking into account the
following conditions and restrictions for the value of goods:
1) the total value of goods per one person does not
exceed:
a) EUR 300 if the traveller arrives by land;
b) EUR 430 if the traveller arrives by air transport or sea
transport;
2) for travellers who are younger than 15 years of age,
regardless of the type of arrival the total value of goods per
one person does not exceed EUR 285;
3) the following is not included in the total value of goods
referred to in Clause 1 of this Paragraph:
a) the value of the personal luggage which is imported
temporarily or re-imported by the traveller after temporary
exportation,
b) the value of medicinal products necessary for the personal
needs of the traveller,
c) the value of goods indicated in Paragraph fifteen of this
Section;
4) the value of one good cannot be divided.
(15) Tobacco products, alcoholic beverages and fuel which is
imported by a traveller in his personal luggage, in conformity
with the provisions of the law On Excise Duty and restrictions
for quantity of such goods, shall not be taxable.
(16) Such importation of goods shall not be taxable to which
the import scheme specified in Section 140.4 of this
Law is applied if the registration number in the State Revenue
Service Value Added Tax Taxable Persons Register of the supplier
of goods or the intermediary referred to in Section
140.4 of this Law (who acts in the interests of the
supplier of goods) for the use of the import scheme specified in
Section 140.4 of this Law is at the disposal of the
State Revenue Service at the moment of submitting the declaration
at the latest.
[19 September 2013; 28 November 2019; 15 October 2022; 10
February 2022 / Clause 6 of Paragraph seven shall apply
from 1 January 2021. Clause 7 of Paragraph seven shall come into
force on 1 July 2022. See Paragraphs 42 and 44 of Transitional
Provisions]
Section 54. Non-taxable Acquisition
of Goods in the Territory of the European Union
(1) Acquisition of goods in the territory of the European
Union for the supply of which in inland an exemption would be
applicable in accordance with Section 52 of this Law shall not be
taxable.
(2) Acquisition of goods in the territory of the European
Union the importation of which would be exempted from the tax in
accordance with Section 53, Paragraph three or nine of this Law
shall not be taxable.
(3) Acquisition of goods in the territory of the European
Union made in inland shall not be taxable if:
1) the acquisition of goods in the territory of the European
Union is made by a registered taxable person of another Member
State who does not conduct economic activity in inland for the
purpose of supplying such goods further to a registered taxable
person in inland;
2) goods are sent to inland directly from the Member State
other than the Member State of establishment of a taxable person
of another Member State referred to in Clause 1 of this
Paragraph;
3) the registered taxable person referred to in Clause 1 of
this Paragraph in accordance with Section 86, Paragraph eight of
this Law is liable for the payment of the tax into the State
budget.
(4) The exemption laid down in Paragraph three of this Section
shall not be applied if the registered taxable person of another
Member State referred to in Paragraph three, Clause 1 of this
Section is also registered in the State Revenue Service Value
Added Tax Taxable Persons Register.
[15 October 2020]
Chapter
VIII
Registration of a Taxable Person in the State Revenue Service
Value Added Tax Taxable Persons Register
Section 55. General Provisions for
the Registration of a Taxable Person in the State Revenue Service
Value Added Tax Taxable Persons Register
(1) A taxable person shall register in the State Revenue
Service Value Added Tax Taxable Persons Register before he or
she:
1) makes taxable transactions;
2) receives such services in inland the place of supply of
which is determined in accordance with Section 19, Paragraph one
of this Law;
3) supplies such services, the place of supply of which in
accordance with Section 19, Paragraph one of this Law is another
Member State and in relation to which the recipient of services
is responsible for the payment of taxes.
(2) A taxable person has the right to register in the State
Revenue Service Value Added Tax Taxable Persons Register for a
definite period of time which it indicates for making taxable
transactions in the submission for registration referred to in
Section 66, Paragraph one of this Law.
[6 November 2013]
Section 56. Registration of a
Taxable Person in the State Revenue Service Value Added Tax
Taxable Persons Register
(1) The following persons shall be registered in the State
Revenue Service Value Added Tax Taxable Persons Register:
1) natural persons;
2) legal persons;
3) partnerships;
4) an authorised natural person of a group of persons if the
group of persons is operating on the basis of an agreement for
the performance of joint economic activity;
5) a VAT group, indicating the principal undertaking of the
VAT group which undertakes the commitments to submit a tax return
on behalf of the VAT group and fulfil other obligations of a
registered taxable person (hereinafter - the principal
undertaking);
6) a fiscal representative.
(2) If a taxable person of another Member State makes at least
one taxable transaction inland, one of the following persons
shall be registered in the State Revenue Service Value Added Tax
Taxable Persons Register of the State Revenue Service:
1) a taxable person of another Member State;
2) its authorised person inland.
(3) If a taxable person of a third country or third territory
makes at least one taxable transaction inland, the State Revenue
Service shall register at least one of the following persons in
the State Revenue Service Value Added Tax Taxable Persons
Register:
1) a taxable person of a third country or third territory;
2) its authorised person inland.
[6 November 2013]
Section 57. Provisions for the
Registration of an Inland Taxable Person in the State Revenue
Service Value Added Tax Taxable Persons Register for the
Acquisition of Goods in the Territory of European Union
(1) If a non-registered taxable person has acquired goods in
the territory of the European Union and if the total value of
such goods without tax in the current calendar year reaches or
exceeds EUR 10 000, the taxable person shall submit the
registration submission referred to in Section 66, Paragraph one
of this Law to the State Revenue Service by the fifteenth date of
the month following that taxation period when the registration
threshold of EUR 10 000 laid down in this Law was reached or
exceeded.
(2) A non-registered taxable person is entitled not to apply
Paragraph one of this Section if after one acquisition of goods
in the territory of the European Union by which the registration
threshold of EUR 10 000 is reached or exceeded no other
acquisitions of goods are intended in the territory of the
European Union in the next calendar year the total value of which
would exceed EUR 10 000. In such case the abovementioned person
shall pay the tax into the State budget in accordance with the
procedures laid down in Section 121, Paragraph three of this Law
without registering in the State Revenue Service Value Added Tax
Taxable Persons Register.
(3) If an inland taxable person has registered in the State
Revenue Service Value Added Tax Taxable Persons Register before
reaching the sum referred to in Paragraph one of this Section,
then after registering in the State Revenue Service Value Added
Tax Taxable Persons Register a taxable person who makes the
acquisition of goods in the territory of the European Union is
entitled to withdraw from it voluntarily not later than two years
after the day of registration.
(4) This Section is not applicable in respect of such taxable
person of another Member State or taxable person of third country
or third territory who makes taxable transactions inland.
[19 September 2013]
Section 58. Provisions for the
Registration of a State or Local Government Institution or a
Local Government in the State Revenue Service Value Added Tax
Taxable Persons Register for the Receipt of Construction
Services
(1) A State or local government institution or local
government which is not registered in the State Revenue Service
Value Added Tax Taxable Persons Register and which has concluded
a contract with a supplier of construction services for the
receipt of the construction services referred to in Section 142,
Paragraph four of this Law in accordance with the procurement
procedure laid down in the Public Procurement Law or is involved
as a public partner in a project of public-private partnership in
accordance with the Law on Public-Private Partnership shall
register in the State Revenue Service Value Added Tax Taxable
Persons Register before receipt of such services.
(2) A registration number of the State Revenue Service Value
Added Tax Taxable Persons Register shall be assigned to persons
registered in accordance with Paragraph one of this Section which
is to be used for the receipt of the construction services
referred to in Section 142, Paragraph four of this Law.
Section 59. Right of an Inland
Taxable Person not to Register in the State Revenue Service Value
Added Tax Taxable Persons Register
(1) An inland taxable person is entitled not to register in
the State Revenue Service Value Added Tax Taxable Persons
Register if the total value of the taxable supplies of goods and
services made thereby has not exceeded EUR 40 000 over the
previous 12 months.
(2) An inland taxable person shall, not later than until the
fifteenth date of the month following the month when the
registration threshold laid down in Paragraph one of this Section
was exceeded, submit a submission to the State Revenue Service
for the registration referred to in Section 66, Paragraph one of
this Section.
(3) The sum referred to in Paragraph one of this Section shall
not include the value of fixed assets and intangible investments
supplied by an inland taxable person if such supply is provided
once within 12 months.
(4) Paragraph one of this Section shall not be applied if a
taxable person supplies services to a taxable person of another
Member State the place of supply of which is determined in
accordance with Section 19, Paragraph one of this Law.
(5) A taxable person is entitled not to apply Paragraph one of
this Section if after one transaction by which the registration
threshold laid down in this Paragraph is exceeded it is not
intended to make other taxable transactions during the next 12
months. In such case the abovementioned person shall pay the tax
into the State budget in accordance with the procedures laid down
in Section 34, Paragraph ten and Section 119, Paragraph two of
this Law without registering in the State Revenue Service Value
Added Tax Taxable Persons Register.
(6) Paragraph one of this Section shall not be applied if a
taxable person receives services from a person from another
Member State or from any third country or third territory which
does not conduct economic activity inland, the place of supply of
which is determined in accordance with Section 19, Paragraph one
of this Law.
(7) The persons referred to in Section 3, Paragraph four of
this Law do not have an obligation to register in the State
Revenue Service Value Added Tax Taxable Persons Register.
(8) This Section is not applicable in respect of such taxable
person of another Member State or taxable person of third country
or third territory which makes taxable transactions in
inland.
[19 September 2013; 27 July 2017]
Section 60. Provisions for the
Registration of a Taxable Person of Another Member State in the
State Revenue Service Value Added Tax Taxable Persons
Register
(1) If a taxable person of another Member State supplies goods
to a person which is not a taxable person or is a non-registered
taxable person and such goods are assembled or installed inland,
then such taxable person of another Member State prior to making
the transaction shall register in the State Revenue Service Value
Added Tax Taxable Persons Register regardless of the value of
assembled or installed goods.
(2) A taxable person of another Member State shall register in
the State Revenue Service Value Added Tax Taxable Persons
Register in case of distance selling of goods:
1) 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 10 000;
2) prior to making the transaction if such goods are supplied
which are subject to excise duty inland regardless of the value
of the excisable goods supplied.
(3) In transactions of distance selling of goods, a taxable
person of another Member State has the right to register in the
State Revenue Service Value Added Tax Taxable Persons Register
also prior to reaching the registration threshold referred to in
Paragraph two, Clause 1 of this Section.
(4) If an inland fixed establishment of a taxable person of
another Member State gets involved in the supply of goods or
services of such person inland, it shall register in the State
Revenue Service Value Added Tax Taxable Persons Register prior to
making such transactions.
[19 September 2013; 15 October 2020]
Section 61. Right of a Taxable
Person of Another Member State not to Register in the State
Revenue Service Value Added Tax Taxable Persons Register
(1) A taxable person of another Member State is entitled not
to register in the State Revenue Service Value Added Tax Taxable
Persons Register if it provides such supply of goods or services
the tax for which is paid in the State budget by the recipient of
goods or services.
(2) A taxable person of another Member State is entitled not
to register in the State Revenue Service Value Added Tax Taxable
Persons Register if it only makes transactions of supplies of
goods in a customs warehouse or free zone with the goods which
are the Union goods within the meaning of the Regulation (EU) No
952/2013 of the European Parliament and of the Council of 9
October 2013 laying down the Union Customs Code (hereinafter -
the Union goods) for which goods export procedure has been
commenced, as well as with the goods that are non-Union goods
within the meaning of this Regulation (hereinafter - the
non-Union goods).
(3) A taxable person of another Member State who is making the
transactions of supplies of goods by moving the non-Union goods
from one inland customs warehouse or free zone to other inland
customs warehouses or free zones or customs warehouses or free
zones of another Member State, as well as such Union goods for
which the goods bringing-out procedure has been commenced, is
entitled not to register in the State Revenue Service Value Added
Tax Taxable Persons Register.
(4) Taxable person of another Member State is entitled to not
register in the State Revenue Service Value Added Tax Taxable
Persons Register if it makes a transaction of supply of goods
from another Member State to an inland warehouse and all of the
following conditions are met:
1) taxable person of another Member State or a third person on
its behalf dispatches or transports goods from another Member
State to an inland warehouse so that the abovementioned goods
would, at a later stage, however, not later than within 12 months
after importation, be delivered to a registered taxable person
who is entitled to assume ownership of the abovementioned goods
in conformity with an agreement between both taxable persons;
2) taxable person of another Member State who dispatches or
transports goods from another Member State to an inland warehouse
does not have a place of establishment of a business or a fixed
establishment in inland;
3) the receiver of goods is a registered taxable person and
its registration number in the State Revenue Service Value Added
Tax Taxable Persons Register is known to the taxable person of
another Member State referred to in this Paragraph of this
Section at the beginning of dispatching or transporting the
goods;
4) a taxable person of another Member State, when dispatching
or transporting goods from another Member State to an inland
warehouse, registers the transfer of the goods in the register
referred to in Section 134, Paragraph three, Clause 3 of this Law
and declares such supply in its Member State in the report on
supply of goods and services in the territory of the European
Union.
(5) A registered taxable person of another Member State who
makes inland acquisition of goods in the territory of the
European Union and supply of goods, participating in the supply
of goods referred to in Section 54, Paragraph three of this Law,
need not register in the State Revenue Service Value Added Tax
Taxable Persons Register.
(6) A taxable person of another Member State who does not
conduct economic activity inland is entitled not to register in
the State Revenue Service Value Added Tax Taxable Persons
Register, if it provides supply of such goods which are
dispatched or transported by the taxable person or another person
on its behalf from inland to a destination outside the territory
of the European Union, except for goods which are intended for
equipping or supplying pleasure boats, private aircraft or any
other means of transport for private use.
(7) If a taxable person of another Member State is represented
by a fiscal representative in the relevant inland transactions,
the taxable person of another Member State need not register in
the State Revenue Service Value Added Tax Taxable Persons
Register in conformity with Section 55, Paragraph one of this
Law.
(8) A taxable person of another Member State is entitled not
to register in the State Revenue Service Value Added Tax Taxable
Persons Register, if it supplies goods or services inland only to
the Allied Headquarters recognised in the Republic of Latvia.
(9) Paragraph four of this Section shall not be applied and a
taxable person of another Member State shall register in the
State Revenue Service Value Added Tax Taxable Persons Register
prior to making the supply of goods, provided that it supplies
goods to a person other than:
1) the taxable person referred to in Paragraph four, Clause 3
of this Section;
2) another registered taxable person who replaces the taxable
person referred to in Paragraph four, Clause 3 of this Section
within 12 months following the importation of goods in inland,
and provided that the conditions of Paragraph four, Clauses 1, 2,
and 4 of this Section are met.
(10) Paragraph four of this Section shall not be applied and a
taxable person of another Member State shall register in the
State Revenue Service Value Added Tax Taxable Persons Register
if, following the importation of goods in inland, they are
actually lost or destroyed.
[20 April 2017; 28 November 2019; 24 November 2020]
Section 62. Provisions for the
Registration of an Inland Fixed Establishment of a Taxable Person
of a Third Country or Third Territory in the State Revenue
Service Value Added Tax Taxable Persons Register
If an inland fixed establishment of a taxable person of a
third country or third territory gets involved in the supply of
goods or services of such person, it shall register in the State
Revenue Service Value Added Tax Taxable Persons Register prior to
making such transactions.
Section 63. Right of a Taxable
Person of a Third Country or Third Territory not to Register in
the State Revenue Service Value Added Tax Taxable Persons
Register
(1) A taxable person of a third country or third territory is
entitled not to register in the State Revenue Service Value Added
Tax Taxable Persons Register if it provides such supply of goods
or services the tax for which is paid in the State budget by the
recipient of goods or services.
(2) A taxable person of a third country or third territory who
is only making transactions of supplies of goods with non-Union
goods, and also with such Union goods for which the goods
exportation procedure has been commenced in a customs warehouse
or free zone, is entitled not to register in the State Revenue
Service Value Added Tax Taxable Persons Register.
(3) A taxable person of a third country or third territory who
is making transactions of supplies of goods by moving non-Union
goods from one inland customs warehouse or free zone to other
inland customs warehouses or free zones or customs warehouses or
free zones of another Member State, and also such Union goods for
which the goods exportation procedure has been commenced, is
entitled not to register in the State Revenue Service Value Added
Tax Taxable Persons Register.
(4) If a taxable person of a third country or third territory
is represented by a fiscal representative in the relevant inland
transactions, a taxable person of such third country or third
territory need not register in the State Revenue Service Value
Added Tax Taxable Persons Register in conformity with Section 55,
Paragraph one of this Law.
(5) A taxable person of a third country or third territory who
does not perform economic activity inland is entitled not to
register in the State Revenue Service Value Added Tax Taxable
Persons Register, if it provides supply of such goods which are
dispatched or transported by the taxable person or another person
on its behalf from inland to a destination outside the territory
of the European Union, except for goods which are intended for
equipping or supplying pleasure boats, private aircraft or any
other means of transport for private use.
(6) A taxable person of a third country or third territory is
entitled not to register in the State Revenue Service Value Added
Tax Taxable Persons Register, if it supplies goods or services
inland only to the Allied Headquarters recognised in the Republic
of Latvia.
[20 April 2017 / Paragraph six shall come into force from 1
January 2018. See Paragraph 29 of Transitional
Provisions]
Section 64. Conditions for the
Registration of a VAT Group in the State Revenue Service Value
Added Tax Taxable Persons Register and for the Registration of
Members in a VAT Group
(1) Conditions for the registration of a VAT group and for the
registration of members in a VAT group shall be as follows:
1) members of a VAT group may only be registered taxable
persons;
2) the maximum number of members in a VAT group is not
limited;
3) a registered taxable person may not be concurrently a
member of another VAT group;
4) a VAT group may be formed if the total value of the taxable
supplies of goods and services of at least one participant of the
VAT group is at least EUR 350 000 over the previous 12 calendar
months until the month when the submission for the registration
of a VAT group is submitted;
5) members of a VAT group may be:
a) capital companies which are in one group of companies (in
conformity with the Group of Companies Law),
b) a branch of a foreign merchant (legal person) in the
Republic of Latvia if such foreign merchant is in the composition
of the same group of companies which includes other members of
the VAT group in conformity with the Group of Companies Law;
6) a contract for the establishment of a VAT group has been
concluded between the members of the VAT group in which the
principal undertaking is indicated;
7) the members of the VAT group are accessible at their legal
address.
(2) Members of a VAT group shall use their registration number
in the State Revenue Service Value Added Tax Taxable Persons
Register in all transactions with persons other than members of
such VAT group. The registration number issued to the VAT group
shall be used only for the needs of drawing up a tax return of
the VAT group and for the payment of the tax.
[19 September 2013; 23 November 2016]
Section 65. Conditions for the
Registration of a Fiscal Representative in the State Revenue
Service Value Added Tax Taxable Persons Register
(1) A registered taxable person shall be registered in the
State Revenue Service Value Added Tax Taxable Persons Register as
a fiscal representative, issuing a separate registration number
of the fiscal representative in the State Revenue Service Value
Added Tax Taxable Persons Register (hereinafter - the
registration number of a fiscal representative) if it conforms to
all of the conditions provided hereinafter:
1) counting from the day when the relevant registered taxable
person has submitted a submission for registration in the State
Revenue Service of Value Added Tax Taxable Persons, it has
registered economic activity inland more than two years ago and
has performed economic activity continuously since the day of
registration;
2) on the day when the relevant registered taxable person has
submitted the submission for registration in the State Revenue
Service Value Added Tax Taxable Persons Register it has no tax
debts or the time limits for the relevant payments have been
extended (deferred, divided) in accordance with the procedures
laid down in the laws and regulations regarding taxes and fees
and such person fulfils his debt obligations;
3) a natural person or a person entitled to represent a legal
person has no criminal proceedings in respect of fraud,
falsification of documents, tax evasion and similar non-payment
or criminal offences which may affect the determination of the
amount of a tax liability;
4) the relevant registered taxable person submits tax returns
and informative declarations to the State Revenue Service within
the time limits laid down in the laws and regulations governing
the field of taxes and submits the requested additional
information within the time limit laid down by the State Revenue
Service in writing, necessary for the determination of the tax
amount payable into the State budget or the tax overpayment;
5) the relevant registered taxable person is accessible at its
legal address or declared place of residence;
6) the relevant registered taxable person submits any of the
following confirmations for the covering of the possible tax
debt:
a) a confirmation issued by a bank on the fact that monetary
accumulation has been established in a deposit account for the
activities of a fiscal representative for the covering of the
possible tax debt; such accumulation on the day of registration
of a fiscal representative is EUR 14 200 and during activities of
a fiscal representative - in amount of at least 20 per cent of
the average total value of taxable transactions indicated in tax
returns of a fiscal representative for the previous three
taxation periods, however not less than EUR 14 200. A fiscal
representative shall ascertain after the end of each taxation
period and ensure that the accumulated amount conforms to the
conditions of this Sub-clause;
b) a confirmation issued by the bank or insurance company
attesting that the relevant institution will provide guarantee of
not less than EUR 285 000 necessary for the operation of a fiscal
representative for the covering of the possible tax debt. A
fiscal representative shall ascertain after the end of each
taxation period that the amount of the possible tax debt is not
more than the amount of the guarantee referred to in this
Sub-clause. If the amount of the guarantee is not sufficient in
order to cover the possible tax debt, the fiscal representative
shall ensure the increase thereof;
7) the relevant registered taxable person is a registered
client in the Electronic Declaration System of the State Revenue
Service.
(2) A registered taxable person shall be registered in the
State Revenue Service Value Added Tax Taxable Persons Register as
a fiscal representative on the basis of the submission for
registration to be submitted to the State Revenue Service. If the
submission for registration is signed by an authorised person, he
or she shall submit a power of attorney concurrently with such
submission.
(3) The Cabinet shall determine:
1) a sample form for a submission for the registration of a
registered taxable person as a fiscal representative in the State
Revenue Service Value Added Tax Taxable Persons Register, the
procedures for completing, signing, and submitting the form;
2) the conditions and procedures for the covering of a
possible tax debt in the deposit account of monetary accumulation
indicated in the confirmation issued by the bank or insurance
company or for the reduction of the amount of the guarantee
provided and granting of exemption from submitting of such
confirmation;
3) duties of a fiscal representative in respect of covering a
possible tax debt in the deposit account of monetary accumulation
indicated in the confirmation issued by the bank or insurance
company or in respect of conformity with the amount of a
guarantee provided.
[19 September 2013; 23 November 2016; 9 December
2021]
Section 66. General Procedure for
the Registration in the State Revenue Service Value Added Tax
Taxable Persons Register
(1) A non-registered taxable person, taxable person of another
Member State or taxable person of a third country or third
territory shall be registered in the State Revenue Service Value
Added Tax Taxable Persons Register on the basis of a submission
for the registration to be submitted to the State Revenue
Service. If the submission for registration is signed by an
authorised person, he or she shall submit a power of attorney
concurrently with such submission.
(2) The submission for registration referred to in Paragraph
one of this Section may be submitted to the Enterprise Register
concurrently with the application for the entering of a merchant
in the Commercial Register.
(3) The State Revenue Service shall decide on the registration
of a taxable person (including a VAT group and a fiscal
representative, and also to add a new member to the VAT group) in
the State Revenue Service Value Added Tax Taxable Persons
Register or a decision to refuse registration within five working
days after receipt of the submission for registration. If the
court has proclaimed insolvency proceedings for a taxable person
- legal person - and it has been excluded from the State Revenue
Service Value Added Tax Taxable Persons Register until
proclaiming insolvency proceedings on the basis of any of the
conditions referred to in Section 73, Paragraph one, Clause 1, 4,
5, 6, 11, or 12, or Paragraph three of this Law, registration in
the State Revenue Service Value Added Tax Taxable Persons
Register shall not be refused.
(4) If after receipt of the submission for registration the
State Revenue Service has requested information from a taxable
person on his material, technical and financial possibilities to
conduct the declared economic activity, the State Revenue Service
shall decide on the registration of the taxable person in the
State Revenue Service Value Added Tax Taxable Persons Register or
a decision to refuse to register within five working days after
receipt of the requested information.
(5) [9 December 2021]
(6) The State Revenue Service shall notify the principal
undertaking of the VAT group of the decision to register a VAT
group in the State Revenue Service Value Added Tax Taxable
Persons Register, the decision to add a new member to the VAT
group, the decision on refusal to register a VAT group in the
State Revenue Service Value Added Tax Taxable Persons Register,
or the decision on refusal to add a new member to the VAT
group.
(7) [9 December 2021]
(8) The Cabinet shall determine sample forms of the
submissions for the registration of the non-registered taxable
persons referred to in Paragraph one of this Section, taxable
persons of another Member State or taxable persons of third
country or third territory, the procedures for its completion,
signing and submission.
[12 June 2014; 17 December 2015; 9 December 2021]
Section 67. Time of Registration in
the State Revenue Service Value Added Tax Taxable Persons
Register
(1) [9 December 2021]
(2) [9 December 2021]
(21) A taxable person (except for a VAT group)
shall be deemed as registered in the State Revenue Service Value
Added Tax Taxable Persons Register from the day when the decision
to register the taxable person in the State Revenue Service Value
Added Tax Taxable Persons Register is considered notified in
accordance with the law On Taxes and Fees.
(3) A VAT group shall be deemed as registered in the State
Revenue Service Register of Value Added Tax Register and a new
member shall be deemed as added to a VAT group starting from the
first date of the next taxation period after the State Revenue
Service has taken the relevant decision.
(4) The State Revenue Service shall post information on
registration in the State Revenue Service Value Added Tax Taxable
Persons Register, except for information on the registration of a
VAT group or on adding of a new member to a VAT group, on the
website thereof within one working day after taking the decision
on registration.
[12 June 2014; 9 December 2021]
Section 68. Registration of a New
Member in a VAT Group and Exclusion of a Member from a VAT
Group
(1) When adding a new member to a VAT group, the principal
undertaking of the VAT group shall submit a submission to the
State Revenue Service and an accordingly amended agreement on the
establishment of a VAT group.
(2) The State Revenue Service shall decide to refuse adding of
a new member to a VAT group if the new member fails to conform to
the conditions of Section 64 of this Law.
(3) A member is entitled to withdraw from a VAT group not
earlier than 12 calendar months after its adding to the VAT
group, except when it no longer conforms to the conditions of
Section 64 of this Law.
(4) For a member to withdraw from a VAT group, the principal
undertaking shall submit a submission to the State Revenue
Service for the exclusion of a member from the VAT group and an
accordingly amended agreement on the establishment of a VAT
group.
(5) If a member no longer conforms to the conditions of
Section 64 of this Law, the principal undertaking shall submit a
submission for the exclusion of the abovementioned member from a
VAT group and an accordingly amended agreement on the
establishment of a VAT group within two months from the day when
the abovementioned member no longer conforms to the conditions of
Section 64 of this Law.
(6) For a principal undertaking to withdraw from a VAT group,
it shall submit a submission to the State Revenue Service for the
exclusion thereof from the VAT group and an accordingly amended
agreement on the establishment of a VAT group in which such
member of the VAT group is indicated which will henceforth be the
principal undertaking. The member which will henceforward be the
principal undertaking shall be the successor of commitments and
responsibilities of the previous principal undertaking in respect
of the commitments and responsibilities of the VAT group towards
the State Revenue Service.
(7) A member of a VAT group shall be deemed as excluded from
the VAT group starting from the first date of the next taxation
period after the State Revenue Service has taken the decision to
exclude the member from the VAT group.
[9 December 2021]
Section 69. Refusal to Register a
Taxable Person in the State Revenue Service Value Added Tax
Taxable Persons Register
(1) The State Revenue Service shall take the decision to
refuse to register an inland taxable person
in the State Revenue Service Value Added Tax Taxable Persons
Register (except for a VAT group) if at least one of the
following conditions exists:
1) the taxable person is not accessible at the legal address
indicated by it or at the address of its declared place of
residence or in fact such address does not exist;
2) the taxable person does not provide information upon a
request of the State Revenue Service or provides unjustified or
false information on the material, technical and financial
possibilities thereof to perform the declared economic
activity;
3) economic activity of the taxable person has been suspended
in accordance with the law On Taxes and Fees;
4) the address of the taxable person conforms to the
conditions of risk address in conformity with the law On Taxes
and Fees;
5) the taxable person or its official, proctor or authorised
person if the abovementioned persons are residents of the
Republic of Latvia has no address of the declared place of
residence in Latvia;
6) an official of the taxable person - legal person, or the
taxable person - natural person has been included in the list of
persons of risk in accordance with the law On Taxes and Fees;
7) activities of the taxable person - merchant have been
suspended on the basis of its decision in accordance with the
Commercial Law.
(2) The State Revenue shall take the decision to refuse to
register a taxable person of another Member State or a taxable
person of a third country or third territory in the State Revenue
Service Value Added Tax Taxable Persons Register if it has not
provided all required information in the submission for
registration or has not submitted all the documents to be
appended to the submission.
(3) The State Revenue Service shall take the decision to
refuse to register a taxable person of another Member State or a
taxable person of a third country or third territory in the State
Revenue Service Value Added Tax Taxable Persons Register, if an
authorised person of the taxable person of another Member State
or of the taxable person of a third country or third territory
has not provided all information on the person represented by
him, or has not submitted all documents to be appended to the
submission.
(4) The State Revenue Service shall decide to refuse to
register a VAT group in the State Revenue Service Value Added Tax
Taxable Persons Register if the VAT group does not meet the
conditions of Section 64 of this Law.
(5) A taxable person who has received the decision of the
State Revenue Service to refuse to register in the State Revenue
Service Value Added Tax Taxable Persons Register has the right to
eliminate the reasons for the refusal of registration referred to
in Paragraph one of this Section - to adjust the submission for
registration referred to in Section 66, Paragraph one of this Law
and to submit it repeatedly to the State Revenue Service.
[17 December 2015]
Section 70. Repeat Registration in
the State Revenue Service Value Added Tax Taxable Persons
Register
(1) A taxable person who has been excluded from the State
Revenue Service Value Added Tax Taxable Persons Register in
accordance with Section 73, Paragraph one, Clause 4, 5, 6, or 11,
or Paragraph three of this Law shall be registered repeatedly in
the State Revenue Service Value Added Tax Taxable Persons
Register in accordance with the procedures laid down in Section
66 of this Law after fulfilment of the conditions of Section 104,
Paragraph three of this Law and after:
1) submitting of the tax returns not submitted in time and
payment of the tax amount payable into the State budget included
in those tax returns, late payment charge, as well as fines
calculated for the failure to submit tax returns in time;
2) correction of false information provided in the tax return
that has been established during tax audit conducted by the State
Revenue Service and payment of the tax amount payable into the
State budget and late payment charge;
3) submission of the information requested by the State
Revenue Service (documents supporting business revenues and
expenditures, accounting records, and also other information
describing the activities which affected or could have affected
the assessment and payment of tax);
4) adjustment of information on the legal address or the
declared place of residence;
5) the decision of the State Revenue Service to renew economic
activity of the taxable person;
6) the decision of the State Revenue Service to exclude an
official of the taxable person - legal person - or the taxable
person - natural person - from the list of persons of risk in
accordance with the law On Taxes and Fees;
7) replacement of an official of the taxable person - legal
person - or the taxable person - natural person - who has been
included in the list of persons of risk in accordance with the
law on Taxes and Fees with an official who has not been included
in the said list of persons of risk;
8) submission of complete and justified information on
material, technical, and financial possibilities of the
registered taxable person to perform economic activity;
9) submission of complete and justified information stating
the intention to perform economic activity if a registered
taxable person has been excluded from the State Revenue Service
Value Added Tax Taxable Persons Register due to the reason that
no transactions had been specified in tax returns for at least
the previous six calendar months;
10) submission of complete and justified information stating
the intention to perform economic activity without any risks
relating to the payment of taxes, if the registered taxable
person has been excluded from the State Revenue Service Value
Added Tax Taxable Persons Register due to the change of all
officials.
(2) If a taxable person - legal person - for which insolvency
proceedings have been declared has been excluded from the State
Revenue Service Value Added Tax Taxable Persons Register until
declaring insolvency proceedings on the basis of any of the
conditions referred to in Section 73, Paragraph one, Clause 4, 5,
6, or 11, or Paragraph three of this Law, this taxable person
shall be registered repeatedly in the State Revenue Service Value
Added Tax Taxable Persons Register in accordance with the
procedures laid down in Section 66 of this Law also if the
conditions referred to in Paragraph one of this Section have not
been met.
[12 June 2014; 17 December 2015; 20 June 2019]
Section 71. Repeat Registration of a
Fiscal Representative in the State Revenue Service Value Added
Tax Taxable Persons Register
(1) A fiscal representative shall be registered repeatedly in
the State Revenue Service Value Added Tax Taxable Persons
Register if:
1) a registered taxable person who wishes to register as a
fiscal representative conforms to Section 65, Paragraph one,
Clauses 2 and 3 of this Law;
2) a fiscal representative who has been excluded from the
State Revenue Service Value Added Tax Taxable Persons Register in
accordance with Section 73, Paragraph one, Clause 5 or 6 of this
Law has fulfilled the commitments referred to in Section 70 of
this Law;
3) any of the confirmations provided for in Section 65,
Paragraph one, Clause 6 of this Law is provided for activities of
a fiscal representative;
4) the relevant person does not have any tax debts for the
previous taxation periods on the day when the submission for the
registration of a fiscal representative in the State Revenue
Service Value Added Tax Taxable Persons Register is submitted to
the State Revenue Service.
(2) If until the day when a fiscal representative is excluded
from the State Revenue Service Value Added Tax Taxable Persons
Register he or she has been excluded from such register twice
already in accordance with Section 73, Paragraph one, Clause 10
or Section 83, Paragraph two, the fiscal representative shall be
registered repeatedly in the State Revenue Service Value Added
Tax Taxable Persons Register not earlier than a year after the
last exclusion.
Section 72. Extension of the Term
for Registration in the State Revenue Service Value Added Tax
Taxable Persons Register
(1) If a taxable person who has been registered for a definite
term in accordance with Section 55, Paragraph two of this Law
wishes to extend the term for registration in the State Revenue
Service Value Added Tax Taxable Persons Register, it shall submit
the submission for registration referred to in Section 66,
Paragraph one of this Law to the State Revenue Service not later
than within 15 working days before expiry of the term for
registration.
(2) The Cabinet shall determine the procedures for extending
the term of registration referred to in Paragraph one of this
Section in the State Revenue Service Value Added Tax Taxable
Persons Register.
Chapter
IX
Exclusion of a Registered Taxable Person from the State Revenue
Service Value Added Tax Taxable Persons Register
Section 73. General Cases for the
Exclusion of a Registered Taxable Person from the State Revenue
Service Value Added Tax Taxable Persons Register
(1) The State Revenue Service shall exclude a registered
taxable person from the State Revenue Service Value Added Tax
Taxable Persons Register if at least one of the following
conditions sets in:
1) a registered taxable person (except for a VAT group)
submits a justified submission to the State Revenue Service for
its exclusion from the State Revenue Service Value Added Tax
Taxable Persons Register;
2) a registered taxable person has been liquidated or ceases
to exist as a result of reorganisation;
3) a natural person who is a registered taxable person is
deceased;
4) economic activity of the registered taxable person has been
suspended in accordance with the law On Taxes and Fees;
5) at least one of the following conditions sets in during the
time period of activity of the registered taxable person:
a) tax return has not been submitted within 30 days after the
time limit for the submission of a tax return laid down in this
Law;
b) false information has been provided in the tax return;
c) the requested information has not been submitted within the
time limit specified by the State Revenue Service in its written
request (documents supporting business revenues and expenditures,
accounting records, and also other information describing the
activities which affected or could have affected the assessment
and payment of tax);
d) a registered taxable person has provided unjustified or
false information regarding its material, technical and financial
possibilities to perform economic activity;
6) a registered taxable person (except for a taxable person of
another Member State and a taxable person of a third country or
third territory) is not accessible at his legal address or at the
address of his declared place of residence or in fact such
address does not exist;
7) a registered taxable person which is a State or local
government institution or local government submits a justified
submission to the State Revenue Service on exclusion thereof from
the State Revenue Service Value Added Tax Taxable Persons
Register in which it notifies that it does not intend to receive
any further construction services and make taxable transactions
due to which it should be registered in the State Revenue Service
Value Added Tax Taxable Persons Register in accordance with this
Law;
8) a VAT group submits a submission to the State Revenue
Service on the exclusion thereof from the State Revenue Service
Value Added Tax Taxable Persons Register and 12 calendar months
have elapsed from the day of registration of the VAT group;
9) a VAT group does not meet the conditions of Section 64 of
this Law anymore;
10) at least one of the following conditions sets in during
the time period of activity of a fiscal representative:
a) the fiscal representative fails to comply with the
conditions of Paragraph one, Clause 5 or 6 of this Section;
b) on the fifth day of the current month the fiscal
representative has tax debt to the State budget which is larger
than the amount of accumulation or guarantee referred to in
Section 65, Paragraph one, Clause 6 of this Law and the time
limit for the payment of tax has not been extended (deferred,
divided) in accordance with the procedures laid down in the laws
and regulations regarding taxes and fees;
c) a natural person or a person entitled to represent a legal
person has a criminal record for fraud, falsification of
documents, tax evasion and similar non-payment or criminal
offences which may affect the determination of the amount of a
tax liability;
11) material, technical, and financial possibilities of a
registered taxable person do not conform to any of the types of
its economic activity;
12) activities of a registered taxable person - merchant have
been suspended on the basis of its decision in accordance with
the Commercial Law.
(2) A registered taxable person, which is a State or local
government institution or local government and which is planning
to receive henceforward only the construction services referred
to in Section 142, Paragraph four of this Law and not to make
taxable transactions due to which it should be registered in the
State Revenue Service Value Added Tax Taxable Persons Register in
accordance with this Law, is entitled to notify the State Revenue
Service that starting from the next taxation period the
registration number in the State Revenue Service Value Added Tax
Taxable Persons Register will be used only in order to receive
the construction services referred to in Section 142, Paragraph
four of this Law.
(3) The State Revenue Service has the right to exclude a
registered taxable person from the State Revenue Service Value
Added Tax Taxable Persons Register if at least one of the
following conditions sets in:
1) an official of the registered taxable person - legal person
- or the registered taxable person - natural person - has been
included in the list of persons of risk in accordance with the
law On Taxes and Fees;
2) the registered taxable person has not specified any
transactions in tax returns for at least the previous six
calendar months;
3) the registered taxable person changes all of its
officials.
[6 November 2013; 17 December 2015; 20 June 2019]
Section 74. General Procedure for
the Exclusion of a Registered Taxable Person from the State
Revenue Service Value Added Tax Taxable Persons Register and Time
of Exclusion
(1) If a registered taxable person (except for a VAT group)
submits a justified submission to the State Revenue Service for
its exclusion from the State Revenue Service Value Added Tax
Taxable Persons Register, the State Revenue Service shall examine
such submission and within 10 working days after receipt of the
submission at the State Revenue Service decide whether to exclude
the registered taxable person from the State Revenue Service
Value Added Tax Taxable Persons Register to refuse to exclude the
registered taxable person from the State Revenue Service Value
Added Tax Taxable Persons Register.
(2) A registered taxable person (except for a VAT group) shall
be deemed excluded from the State Revenue Service Value Added Tax
Taxable Persons Register from the day when the decision to
exclude a registered taxable person from the State Revenue
Service Value Added Tax Taxable Persons Register is considered
notified in accordance with the law On Taxes and Fees. If the
decision to exclude a registered taxable person from the State
Revenue Service of Value Added Tax Taxable Persons is contested
or appealed, it shall not suspend the operation of such
decision.
(3) A registered taxable person (except for a VAT group), the
economic activity of which has been suspended in accordance with
the law On Taxes and Fees, shall be deemed as excluded from the
State Revenue Service Value Added Tax Taxable Persons Register on
the day when the decision to suspend the economic activity of the
taxable person was taken.
(4) A registered taxable person, which is registered with the
State Revenue Service Value Added Tax Taxable Persons Register
for a definite term indicated in the submission for registration
referred to in Section 66, Paragraph one of this Law, shall be
deemed as excluded from the State Revenue Service Value Added Tax
Taxable Persons Register starting from the next day after expiry
of such time period.
(5) The State Revenue Service shall post the information on
exclusion of a registered taxable person from the State Revenue
Service Value Added Tax Taxable Persons Register on the website
thereof within one working day after:
1) the decision to exclude the taxable person from the State
Revenue Service Value Added Tax Taxable Persons Register is
posted in the Electronic Declaration System of the State Revenue
Service;
2) information on liquidation or reorganisation of the
relevant taxable person has been received from the Enterprise
Register if the registered taxable person has been liquidated or
reorganised.
[12 June 2014; 9 December 2021]
Section 75. Exclusion of a
Registered Taxable Person from the State Revenue Service Value
Added Tax Taxable Persons Register and Time of Exclusion if the
Registered Taxable Person has been Liquidated or Ceases to Exist
as a Result of Reorganisation
(1) If a registered taxable person has been liquidated or
ceases to exist as a result of reorganisation, the State Revenue
Service shall exclude the relevant registered taxable person from
the State Revenue Service Value Added Tax Taxable Persons
Register within one working day after receipt of the information
on its exclusion from the Enterprise Register.
(2) A registered taxable person shall be deemed as excluded
from the State Revenue Service Value Added Tax Taxable Persons
Register on the day when liquidation thereof has been completed,
or on the day when the registered taxable person ceases to exist
as a result of reorganisation.
Section 76. Exclusion of a Deceased
Natural Person - Registered Taxable Person - from the State
Revenue Service Value Added Tax Taxable Persons Register and Time
of Exclusion
(1) A natural person who is a registered taxable person and
who is deceased shall be excluded from the State Revenue Service
Value Added Tax Taxable Persons Register on the basis of a
decision of the State Revenue Service not earlier than 60 days
after the death of the natural person.
(2) The person referred to in Paragraph one of this Section
shall not be excluded from the State Revenue Service Value Added
Tax Taxable Persons Register, if an heir or a trustee assigned by
the court for the management of estate, whereof the State Revenue
Service has been informed within 60 days after the death of the
natural person, continues to perform economic activities instead
of the estate-leaver until the time when right of inheritance of
lawful heirs enters into effect.
(3) A natural person who is a registered taxable person and
who is deceased shall be deemed as excluded from the State
Revenue Service Value Added Tax Taxable Persons Register on the
basis of a submission of the lawful heir on exclusion of such
taxable person from the State Revenue Service Value Added Tax
Taxable Persons Register on the day when the right of inheritance
of lawful heirs has entered into effect or on the seventh day
after the decision to exclude such taxable person from the State
Revenue Service Value Added Tax Taxable Persons Register was
taken.
(4) If the information is not received from an heir or a
trustee assigned by the court for the management of inheritance,
who in accordance with the procedures laid down in Paragraph two
of this Section has informed the State Revenue Service that he or
she continues to perform economic activity instead of the
estate-leaver, or from a lawful heir within nine months after the
day of death of the natural person referred to in Paragraph three
of this Section that a lawful heir has been appointed or the
estate acceptance process is continued, the deceased person shall
be excluded from the State Revenue Service Value Added Tax
Taxable Persons Register on the seventh day after the decision to
exclude the registered taxable person was taken.
Section 77. Exclusion of a
Registered Taxable Person from the State Revenue Service Value
Added Tax Taxable Persons Register and Time of Exclusion if
Reorganisation of the Registered Taxable Person has Occurred
If reorganisation of a registered taxable person has occurred
and it continues to exist after reorganisation, the State Revenue
Service shall, within 10 working days after receipt of the
justified submission of such registered taxable person on
exclusion from the State Revenue Service Value Added Tax Taxable
Persons Register, assess the expected amount of taxable
transactions and take the decision to exclude it from the State
Revenue Service Value Added Tax Taxable Persons Register. If the
expected amount of taxable transactions does not exceed EUR 40
000, the registered taxable person shall, upon its justified
submission, be excluded from the State Revenue Service Value
Added Tax Taxable Persons Register.
[19 September 2013; 27 July 2017; 30 May 2019]
Section 78. Exclusion of a
Registered Taxable Person from the State Revenue Service Value
Added Tax Taxable Persons Register for the Receipt of
Construction Services and Time of Exclusion
(1) If a registered taxable person is a State or local
government institution or local government which has been
registered in the State Revenue Service Value Added Tax Taxable
Persons Register in accordance with Section 58 of this Law only
to receive the construction services referred to in Section 142,
Paragraph four of this Law, it shall submit a justified
submission to the State Revenue Service on exclusion thereof from
the State Revenue Service Value Added Tax Taxable Persons
Register, the State Revenue Service shall examine such submission
and take a decision in accordance with Section 74, Paragraph one
of this Law.
(2) In the case referred to in Paragraph one of this Section,
a State or local government institution or local government shall
be deemed as excluded from the State Revenue Service Value Added
Tax Taxable Persons Register in accordance with Section 74,
Paragraph two of this Law.
Section 79. Exclusion from the State
Revenue Service Value Added Tax Taxable Persons Register if a
Registered Taxable Person Fails to Submit a Tax Return or the
Requested Information, or Provides False Information in a Tax
Return or Unjustified or False Information on Its Material,
Technical and Financial Possibilities to Perform Economic
Activity
(1) If at least one of the conditions referred to in Section
73, Paragraph one, Clause 5, Sub-clauses "a", "c", or "d" of this
Law sets in, the State Revenue Service shall send a written
warning to a registered taxable person regarding its exclusion
from the State Revenue Service Value Added Tax Taxable Persons
Register.
(2) If within 12 working days after sending of the warning
referred to in Paragraph one of this Section, a registered
taxable person fails to submit a tax return or the requested
information, or provides unjustified or false information on its
material, technical, and financial possibilities to conduct
economic activity, it shall be excluded from the State Revenue
Service Value Added Tax Taxable Persons Register.
(3) If the tax audit conducted by the State Revenue Service
establishes that a registered taxable person has provided false
information in a tax return, it shall be excluded from the State
Revenue Service Value Added Tax Taxable Persons Register.
[17 December 2015]
Section 80. Exclusion from the State
Revenue Service Value Added Tax Taxable Persons Register if a
Registered Taxable Person is not Accessible at the Indicated
Legal Address or Declared Place of Residence
(1) If in an inspection performed by the State Revenue Service
it is established that a registered taxable person is not
accessible at the indicated legal address or declared place of
residence, the State Revenue Service shall send a written warning
to it on exclusion from the State Revenue Service Value Added Tax
Taxable Persons Register. The time when accessibility of the
registered taxable person at the legal address or declared place
of residence will be verified repeatedly shall be indicated in
the warning.
(2) If a registered taxable person is not accessible at the
legal address or declared place of residence also during repeated
inspection, it shall be excluded from the State Revenue Service
Value Added Tax Taxable Persons Register.
(3) If in an inspection performed by the State Revenue Service
it is established that the legal address or declared place of
residence of a registered taxable person in fact does not exist,
the registered taxable person shall be excluded from the State
Revenue Service Value Added Tax Taxable Persons Register.
(4) The State Revenue Service has the right to exclude a
registered taxable person from the State Revenue Service Value
Added Tax Taxable Persons Register in accordance with Section 73,
Paragraph one, Clause 6 of this Law:
1) without performing an inspection, but sending a written
warning on exclusion from the State Revenue Service Value Added
Tax Taxable Persons Register, if the State Revenue Service has a
written confirmation at the disposal thereof from the owner of
the building or premises where the legal address of a taxable
person (if the legal address was entered in the Commercial
Register before 1 July 2011) or declared place of residence is
registered on the fact that the particular taxable person in not
located at such address;
2) without performing an inspection and without sending a
written warning on exclusion from the State Revenue Service Value
Added Tax Taxable Persons Register, if a registered postal item
sent to the legal address or to the address of declared place of
residence of the taxable person is returned to the State Revenue
Service with indication that the addressee is not located at such
address.
Section 81. Exclusion from the State
Revenue Service Value Added Tax Taxable Persons Register if
Economic Activity of a Registered Taxable Person has been
Suspended
Upon deciding to suspend economic activity of a registered
taxable person in accordance with the law On Taxes and Fees, the
State Revenue Service shall concurrently take the decision to
exclude the registered taxable person from the State Revenue
Service Value Added Tax Taxable Persons Register.
Section 82. Exclusion of a VAT Group
from the State Revenue Service Value Added Tax Taxable Persons
Register
(1) A VAT group shall be excluded from the State Revenue
Service Value Added Tax Taxable Persons Register in accordance
with the procedures referred to in Section 79 of this Law.
(2) If a member of a VAT group is liquidated and within two
months from the day of the liquidation of the member of a VAT
group the principal undertaking has not submitted a submission to
the State Revenue Service for the exclusion of the member of the
VAT group from the VAT group and an accordingly amended agreement
on the establishment of a VAT group, the State Revenue Service
shall exclude the VAT group from the State Revenue Service Value
Added Tax Taxable Persons Register.
(3) If in an inspection performed by the State Revenue Service
it is determined that a member of a VAT group is not accessible
at the indicated legal address, the State Revenue Service shall
send a warning to the principal undertaking and the relevant
member of the VAT group on the exclusion of the VAT group from
the State Revenue Service Value Added Tax Taxable Persons
Register. The time when accessibility of the member of the VAT
group at the legal address will be verified repeatedly shall be
indicated in the warning.
(4) If a member of a VAT group is not accessible at the legal
address also during repeated inspection, the State Revenue
Service shall exclude the VAT group from the State Revenue
Service Value Added Tax Taxable Persons Register.
(5) If in an inspection performed by the State Revenue Service
it is established that the legal address indicated by a member of
a VAT group in fact does not exist, the State Revenue Service
shall exclude the VAT group from the State Revenue Service Value
Added Tax Taxable Persons Register.
(6) If a member of a VAT group does not meet the conditions of
Section 64 of this Law and the principal undertaking fails to
fulfil the commitments laid down in Section 68, Paragraph five of
this Law, the State Revenue Service shall exclude the VAT group
from the State Revenue Service Value Added Tax Taxable Persons
Register.
(7) If a member of a VAT group is excluded from the State
Revenue Service Value Added Tax Taxable Persons Register in
accordance with Section 73, Paragraph one, Clause 4, the State
Revenue Service shall concurrently take the decision to exclude
the member of the VAT group from the VAT group and also inform
the principal undertaking thereof. Within two months after the
day of excluding the member of the VAT group from the State
Revenue Service Value Added Tax Taxable Persons Register, the
principal undertaking or the member of the VAT group who will be
the principal undertaking henceforward shall submit an amended
agreement on the establishment of a VAT group. If the principal
undertaking fails to fulfil the commitments laid down in this
Paragraph, the State Revenue Service shall take the decision to
exclude the VAT group from the State Revenue Service Value Added
Tax Taxable Persons Register.
(8) A VAT group shall be deemed as excluded from the State
Revenue Service Value Added Tax Taxable Persons Register from the
first date of the next taxation period after the State Revenue
Service has taken the decision to exclude the VAT group from the
State Revenue Service Value Added Tax Taxable Persons
Register.
Section 83. Exclusion of a Fiscal
Representative from the State Revenue Service Value Added Tax
Taxable Persons Register
(1) A fiscal representative shall be excluded from the State
Revenue Service Value Added Tax Taxable Persons Register in
accordance with the procedures referred to in Sections 79 and 80
of this Law.
(2) The State Revenue Service, when excluding a taxable person
whom a registration number of fiscal representative has also been
issued from the State Revenue Service Value Added Tax Taxable
Persons Register, shall also exclude the fiscal
representative.
(3) If the State Revenue Service establishes that a fiscal
representative has the debt referred to in Section 73, Paragraph
one, Clause 10, Sub-clause "b" of this Law, the State Revenue
Service shall send a written warning to the fiscal representative
regarding its exclusion from the State Revenue Service Value
Added Tax Taxable Persons Register.
(4) If within 10 working days after sending of the written
warning referred to in Paragraph three of this Section a fiscal
representative fails to pay the relevant debt, the fiscal
representative shall be excluded from the State Revenue Service
Value Added Tax Taxable Persons Register.
(5) If a fiscal representative is a legal person and the State
Revenue Service determines that in respect of the person having
the right of representation of such legal person the circumstance
referred to in Section 73, Paragraph one, Clause 10, Sub-clause
"c" of this Law sets in, the State Revenue Service shall send a
written warning to the fiscal representative regarding its
exclusion from the State Revenue Service Value Added Tax Taxable
Persons Register.
(6) If within 30 days after sending of the warning referred to
in Paragraph five of this Section, a fiscal representative fails
to eliminate the circumstance referred to in Section 73,
Paragraph one, Clause 10, Sub-clause "c" of this Law, the fiscal
representative shall be excluded from the State Revenue Service
Value Added Tax Taxable Persons Register.
(7) If a fiscal representative is a natural person who is the
only person having the right of representation, and the State
Revenue Service establishes that in respect of such person the
circumstance referred to in Section 73, Paragraph one, Clause 10,
Sub-clause "c" of this Law sets in, the State Revenue Service
shall exclude the fiscal representative from the State Revenue
Service Value Added Tax Taxable Persons Register.
Section 83.1 Exclusion
from the State Revenue Service Value Added Tax Taxable Persons
Register if Material, Technical and Financial Possibilities of a
Registered Taxable Person Do not Correspond to Any of the Types
of Its Economic Activity
If the State Revenue Service establishes during implementation
of tax control and administration measures that material,
technical and financial possibilities of a registered taxable
person do not correspond to any of the types of its economic
activity, the State Revenue Service shall take the decision to
exclude the registered taxable person from the State Revenue
Service Value Added Tax Taxable Persons Register.
[17 December 2015]
Section 83.2 Exclusion
from the State Revenue Service Value Added Tax Taxable Persons
Register if Activities of a Registered Taxable Person - Merchant
Have Been Suspended on the Basis of Its Decision in Accordance
with the Commercial Law
If a registered taxable person - merchant has decided to
suspend merchant activity in accordance with the Commercial Law,
the State Revenue Service shall, within five working days after
receipt of the information from the Commercial Register on
suspension of activities of the relevant registered taxable
person - merchant, takes the decision to exclude the registered
taxable person from the State Revenue Service Value Added Tax
Taxable Persons Register.
[17 December 2015]
Section 83.3 Exclusion
from the State Revenue Service Value Added Tax Taxable Persons
Register if an Official of a Registered Taxable Person - Legal
Person - or a Registered Taxable Person - Natural Person - Has
Been Included in the List of Persons of Risk
(1) If the State Revenue Service establishes that an official
of a registered taxable person - legal person - or a registered
taxable person - natural person - has been included in the list
of persons of risk in accordance with the law On Taxes and Fees,
the State Revenue Service shall assess whether the official of
the registered taxable person - legal person - or registered
taxable person - natural person - has performed any activities
resulting in losing the grounds for the inclusion of this person
in the list of persons of risk.
(2) On the basis of the conducted assessment referred to in
Paragraph one of this Section, the State Revenue Service has the
right to take the decision to exclude a registered taxable person
from the State Revenue Service Value Added Tax Taxable Persons
Register.
[17 December 2015]
Section 83.4 Exclusion
from the State Revenue Service Value Added Tax Taxable Persons
Register if a Registered Taxable Person has not Specified any
Transactions in Tax Returns for at Least the Previous Six
Calendar Months
(1) If the State Revenue Service, upon implementing tax
control and administration measures, finds that a registered
taxable person has not specified any transactions in tax returns
for a least the previous six calendar months and the economic
activity of the referred to taxable person has not been suspended
in accordance with the Commercial Law, the State Revenue Service
shall send a written warning, informing of its right to exclude a
registered taxable person from the State Revenue Service Value
Added Tax Taxable Persons Register, requesting concurrently the
registered taxable person to clarify in writing the factual
circumstances of the abovementioned situation.
(2) If a registered taxable person provides the requested
information within 20 working days after sending of the written
warning referred to in Paragraph one of this Section, the State
Revenue Service has the right to exclude the registered taxable
person from the State Revenue Service Value Added Tax Taxable
Persons Register if, upon evaluations of the information, the
State Revenue Service finds that there is a risk relating to the
payment of taxes and therefore the State budget could incur
losses.
(3) If a registered taxable person does not provide the
requested information within 20 working days after sending of the
written warning referred to in Paragraph one of this Section, the
State Revenue Service has the right to exclude the registered
taxable person from the State Revenue Service Value Added Tax
Taxable Persons Register.
[20 June 2019]
Section 83.5 Exclusion
from the State Revenue Service Value Added Tax Taxable Persons
Register if a Registered Taxable Person Changes all Officials
(1) If the State Revenue Service, upon implementing tax
control and administration measures, finds that a registered
taxable person changes all its officials, the State Revenue
Service has the right to send a written warning, informing of its
right to exclude a registered taxable person from the State
Revenue Service Value Added Tax Taxable Persons Register,
requesting concurrently the registered taxable person to clarify
in writing the factual circumstances of the abovementioned
situation and inviting the officials thereof to an interview.
(2) If a registered taxable person provides the requested
information within 20 working days after sending of the written
warning referred to in Paragraph one of this Section and
interviews with officials have been conducted, the State Revenue
Service has the right to exclude the registered taxable person
from the State Revenue Service Value Added Tax Taxable Persons
Register if,upon evaluation of the information, the State Revenue
Service finds that there is a risk relating to the payment of
taxes and therefore the State budget could incur losses.
(3) If a registered taxable person does not provide the
requested information within 20 working days after sending of the
written warning referred to in Paragraph one of this Section and
interviews with officials have not been conducted, the State
Revenue Service has the right to exclude the registered taxable
person from the State Revenue Service Value Added Tax Taxable
Persons Register.
[20 June 2019]
Chapter X
The Tax to be Paid into the State Budget and Persons Paying
Tax
Section 84. General Provisions for
the Payment of the Tax and for the Determining of Persons Paying
Tax
(1) The tax shall be paid into the State budget by every
taxable person which is registered or which in accordance with
this Law must be registered in the State Revenue Service Value
Added Tax Taxable Persons Register and which makes taxable
transactions which are taxable inland, unless laid down otherwise
in this Law.
(2) The tax for the supply of goods or services, except in the
cases referred to in Section 43, Paragraphs four and six of this
Law, shall be paid into the State budget also in the case when
payment for goods or services has been made before the supply of
goods or services.
(3) The tax for the supply of such goods which are assembled
or installed shall be paid into the State budget also in the case
if the consideration for the transaction has been received before
the supply of goods and assembly or installation thereof.
(4) The tax for the services supplied and supplies of goods
provided in accordance with the procedures referred to in
Sections 141, 142, 143, 143.1, 143.2,
143.3, and 143.4 of this Law shall be paid
into the State budget by the recipient of services or goods if he
or she is a registered taxable person.
(5) If a taxable person of another Member State or a taxable
person of a third country or third territory has not been
registered in the State Revenue Service Value Added Tax Taxable
Persons Register in accordance with Section 55, Paragraph one of
this Law, the tax for the received service shall be calculated
and paid into the State budget by the recipient of the service if
he or she is a registered taxable person.
(6) The tax for taxable transactions (advance payments
received) made inland shall be paid into the State budget also by
taxable persons of another Member State and taxable persons of
third countries or third territories which are registered or
which in accordance with this Law must be registered in the State
Revenue Service Value Added Tax Taxable Persons Register, except
when the tax for the supply of goods or services is paid into the
State budget by the recipient of goods or services.
(7) If a taxable person of another Member State or a taxable
person of a third country or third territory supplying goods or
services inland, the place of supply of which is determined in
accordance with Section 19, Paragraph one of this Law, is a fixed
establishment inland participating in the supply of such goods or
services, the tax for the supply of such goods or services shall
be paid into the State budget by the fixed establishment of the
relevant person.
(8) A registered taxable person which is a State or local
government institution or a local government which in accordance
with Section 58 of this Law has been registered in the State
Revenue Service Value Added Tax Taxable Persons Register for the
receipt of the construction services referred to in Section 142,
Paragraph four of this Law has the right not to pay tax into the
State Budget for other taxable transactions to which tax is
applied inland in accordance with the law, if he exercises the
right laid down in Section 59 of this Law.
(9) The tax shall be paid into the State budget in the cases
laid down in Sections 85, 87, 88, and 89 of this Law also by
non-registered taxable persons.
(10) The tax shall be paid into the State budget by every
person who has indicated the tax in the tax invoice issued
thereby.
(11) If the total value of the taxable supplies of goods and
services made by a non-registered taxable person over the
previous 12 months has exceeded EUR 40 000, he or she shall pay
the tax which is calculated in accordance with Section 34,
Paragraph ten of this Law into the State budget.
[19 September 2013; 6 November 2013; 30 November 2015; 16
June 2016; 23 November 2016; 27 July 2017; 30 May 2019 /
Amendment to Paragraph four regarding replacement of the
figures and words "143.3, 143.4 and
143.5" with the figures and words "143.3
and 143.4" shall come into force on 1 January 2020.
See Paragraph 34 of Transitional Provisions]
Section 85. Persons Paying Tax into
the State Budget for Importation of Goods
(1) Any person shall pay the tax into the State budget for the
importation of goods, unless laid down otherwise in this Law.
(2) If in performing the importation of goods in accordance
with the laws and regulations in the field of customs the customs
debt is to be ensured by the customs guarantee, a person
responsible for the payment of the customs debt who, however, has
not obtained an authorisation to apply special tax arrangement
for transactions of importation of goods, shall submit a
guarantee for the tax debt.
(3) In performing importation of goods, special tax
arrangement for the transactions of importation of goods shall
not be applied by:
1) a registered taxable person if it carries out importation
of goods within the framework of its economic activity and has
received an authorisation from the State Revenue Service;
2) a fiscal representative if it performs importation of
goods, representing a registered taxable person of another Member
State or a registered taxable person of a third country or third
territory, and it has received an authorisation from the State
Revenue Service.
(4) The State Revenue Service on the basis of a submission of
a registered taxable person shall grant the authorisation
referred to in Paragraph three of this Section to the registered
taxable person, if it conforms to all the conditions referred to
in this Paragraph:
1) it is recorded in the commercial register or registered in
the State Revenue Service as a performer of economic
activity;
2) during the preceding 12 months it has performed economic
activity inland and is registered in the State Revenue Service
Value Added Tax Taxable Persons Register;
3) its material, technical and financial possibilities conform
to the types of economic activity;
4) on the day of submitting the submission it does not have
any tax debts;
5) during the preceding 12 months, within the periods laid
down in the laws and regulations governing the field of taxes, it
has provided tax and informative declarations and the annual
report, and also within the deadline specified by the State
Revenue Service has provided additional information that is
necessary for determining the tax amount payable into the State
budget or the tax overpayment;
6) persons with the right of representation have no criminal
proceedings in respect of fraud, falsification of documents, tax
evasion and similar non-payment or criminal offences which may
affect the determination of the amount of a tax liability;
7) an official of a registered taxable person - legal person -
or a registered taxable person - natural person - has not been
included in the list of persons of risk in accordance with the
law On Taxes and Fees;
8) it is a registered client of the Electronic Declaration
System of the State Revenue Service.
(5) A registered taxable person is entitled to apply special
tax arrangement to transactions of importation of goods for the
importation of fixed assets without the authorisation referred to
in Paragraph three of this Section, provided that the conditions
referred to in this Paragraph are met:
1) a registered taxable person imports a fixed asset which is
intended to be used for the provision of taxable transactions
fully or partially at least within 12 calendar months from the
time when importation of fixed assets is carried out;
2) the value of a fixed asset (without tax) reaches or exceeds
EUR 700;
3) a registered taxable person has no tax debts for the
preceding taxation periods.
(6) In applying Paragraph five, Clause 1 of this Section, a
passenger car shall also be deemed a fixed asset if it is
imported by a registered taxable person the basic activity of
which is driver skills training, provision of taxi services,
provision of lease services of passenger cars, transactions of
supply of passenger cars or hire purchase transactions.
(7) If a registered taxable person when importing goods uses
customs services supplied by another person, such person has the
right to apply the special tax arrangement for transactions of
importation of goods, if the authorisation referred to in
Paragraph three of this Section on behalf of the registered
taxable person has been received.
(8) The Cabinet shall determine:
1) the conditions under which the authorisations referred to
in Paragraph three of this Section are issued, suspended and
cancelled, the procedures for issuing, suspending and
cancellation such authorisations, and the procedures for the
submission and examination of the submission for the receipt of
such authorisation;
2) the types of the tax debt guarantee referred to in
Paragraph two of this Section, the procedures for the submitting,
accepting, application, determination of the amount, recording
and extinguishing, and also the requirements according to which a
person is exempted from submitting the debt guarantee;
3) documents confirming payment of the tax into the State
budget in transactions of importation of goods.
[19 September 2013; 6 November 2013; 23 November 2016; 20
April 2017; 20 June 2019]
Section 86. Persons Paying the Tax
into the State Budget for the Acquisition of Goods in the
Territory of the European Union
(1) If a registered taxable person or fiscal representative
makes inland acquisition of goods in the territory of the
European Union, it shall calculate and pay the tax into the State
budget by applying corresponding tax rate to such transaction in
accordance with Section 41, Paragraph one, Clause 1 or 2 of this
Law.
(2) If the total value without tax of the acquisition of goods
in the territory of the European Union by a non-registered
taxable person has exceeded the registration threshold laid down
in Section 57, Paragraph one of this Law, it shall calculate and
pay the tax into the State budget for the acquisition of goods in
the territory of the European Union for the value which exceeds
the registration threshold laid down in Section 57, Paragraph one
of this Law.
(3) If a taxable person of another Member State or a taxable
person of a third country or third territory makes inland
acquisition of goods in the territory of the European Union, it
shall calculate the tax and pay it into the State budget, except
for the transactions referred to in Section 54 of this Law.
(4) If a taxable person of another Member State or a taxable
person of a third country or third territory in accordance with
Section 55, Paragraph one of this Law has not been registered in
the State Revenue Service Value Added Tax Taxable Persons
Register, the tax for the acquisition of goods shall be
calculated and paid into the State budget by the recipient of
goods if he or she is a registered taxable person.
(5) The conditions of Paragraph one of this Section shall not
apply to the acquisition of goods in the territory of the
European Union made by a taxable person, if the zero per cent tax
rate would be applicable inland to such supply of goods in
accordance with Sections 43, 47, 48, and 50 of this Law.
(6) If a registered taxable person or fiscal representative
makes inland acquisition of goods in the territory of the
European Union from a non-registered taxable person of another
Member State, the tax for the acquisition of goods in the
territory of the European Union need not be calculated and paid
into the State budget.
(7) The conditions of Paragraph six of this Section shall not
be applicable to the acquisition of a new means of transport.
(8) If the supplier of goods is a registered taxable person of
another Member State who is not registered in the State Revenue
Service Value Added Tax Taxable Persons Register, has issued a
tax invoice and applies tax to transactions in accordance with
the conditions of Section 54, Paragraph three of this Law, the
registered taxable person shall calculate the tax and pay it into
the State budget for the acquisition of goods in the territory of
the European Union.
(9) [28 November 2019]
[6 November 2013; 19 February 2015; 28 November
2019]
Section 87. Persons Paying the Tax
into the State Budget for the Acquisition of a New Means of
Transport in the Territory of the European Union
Any person including a non-registered taxable person or a
non-taxable person, in acquiring a new means of transport from
any person of another Member State, shall pay tax into the State
budget.
Section 88. Persons Paying Tax into
the State Budget for the Services Supplied by a Taxable Person of
Another Member State
(1) For the services the place of supply of which is
determined in accordance with Section 19, Paragraph one of this
Law and which are received from a taxable person of another
Member State, tax shall be calculated and paid into the State
budget by the recipient of services who is a taxable person.
(2) For the services referred to in Section 20, Paragraph one
and Section 25 of this Law the place of supply of which in
accordance with this Law is inland and which have been received
from a taxable person of another Member State who is not
conducting economic activity inland, tax shall be calculated and
paid into the State budget by the recipient of services, if he is
a registered taxable person.
(3) For the services referred to in Section 20, Paragraph two
and Section 25 of this Law, the place of supply of which in
accordance with this Law is inland, the tax shall be paid by the
supplier of services if the recipient of such services is a
non-registered taxable person or a person who is not a taxable
person.
Section 89. Persons Paying Tax into
the State Budget for the Services Supplied by a Taxable Person of
a Third Country or Third Territory
(1) For the services the place of supply of which is
determined in accordance with Section 19, Paragraph one of this
Law and which are received from a taxable person of a third
country or third territory, the tax shall be calculated and paid
into the State budget by a recipient of services who is a taxable
person.
(2) For the services referred to in Section 20, Paragraph one
and Section 25 of this Law the place of supply of which in
accordance with this Law is inland and which are received from a
taxable person of a third country or third territory who is not
performing economic activity inland, the tax shall be calculated
and paid into the State budget by a recipient of services if he
or she is a registered taxable person.
(3) For the services referred to in Section 20, Paragraph two
and Section 25 of this Law, the place of supply of which in
accordance with this Law is inland, the tax shall be paid by the
supplier of services if the recipient of such services is a
non-registered taxable person or a person who is not a taxable
person.
(4) If a taxable person receives the services indicated in
Section 30, Paragraph one of this Law from a taxable person of a
third country or third territory, it shall calculate the tax for
such services and pay it into the State budget.
(5) Paragraph four of this Section shall not be applicable to
the services referred to in Section 30, Paragraph one, Clause 9
of this Law to which exemption from tax is applied in accordance
with Section 52, Paragraph one, Clauses 20 and 21 of this
Law.
Section 90. Tax Payable into the
State Budget upon Adjusting the Taxable Value of Goods for
Reusable Beverage Packaging not Returned
A registered taxable person who, in accordance with Section
39, Paragraph three, Clause 3 of this Law, did not include a fee
in the taxable value of the transaction for the reusable beverage
packaging to which the deposit system is applied shall, in
submitting a return for the taxation year, adjust the taxable
value of the goods supplied for the value of reusable beverage
packaging not returned in the previous taxation year and pay the
tax amount calculated from such value into the State budget.
[9 December 2021 / The new wording of the Section shall
come into force on 1 February 2022. See Paragraph 41 of
Transitional Provisions]
Section 91. Persons Paying Tax into
the State Budget in Other Cases
(1) If a taxable person of another Member State supplies goods
from another Member State to inland and assembles or installs
them inland, tax shall be paid into the State budget by:
1) the recipient of goods if he or she is a registered taxable
person;
2) a taxable person of another Member State, if the recipient
of goods is a non-registered taxable person or a non-taxable
person.
(2) If a registered taxable person of another Member State or
a taxable person of a third country or third territory supplies
gas, using the natural gas system which is located in the
territory of the European Union, or networks which are connected
to such system, and also supplies electricity, thermal energy or
cooling energy which is ensured through thermal energy or cooling
energy networks, and in accordance with the conditions of Section
15 of this Law the place of supply of goods is inland, tax shall
be paid into the State budget by:
1) the recipient of gas, electricity, thermal energy or
cooling energy, if he or she is a registered taxable person;
2) a taxable person of another Member State or a taxable
person of a third country or third territory, if the recipient of
gas, electricity, thermal energy or cooling energy is a
non-registered taxable person or a non-taxable person.
(3) A registered taxable person, which is a State or local
government institution or a local government which in accordance
with Section 58 of this Law is registered in the State Revenue
Service Value Added Tax Taxable Persons Register for the receipt
of the construction services referred to in Section 142,
Paragraph four of this Law, for other taxable transactions in
respect of which tax is applied in accordance with the Law, shall
pay tax into the State budget if it selects not to exercise or is
not entitled to exercise the right laid down in Section 59 of
this Law upon prior notification thereof to the State Revenue
Service.
[6 November 2013]
Chapter
XI
Deduction of Input Tax from the Tax Amount Payable into the State
Budget and Adjustment of Input Tax
Section 92. General Provisions for
the Deduction of Input Tax
(1) If the goods are acquired and services are received for
the ensuring of taxable transactions or for the ensuring of such
transactions made in other countries which should be taxable, if
they would be made inland, the input tax shall be:
1) the tax amounts indicated in tax invoices received from
other registered taxable persons for the goods acquired and
services received;
2) the tax amount paid for the importation of goods;
3) the tax amount calculated in accordance with a special tax
arrangement for transactions of importation of goods in
conformity with a customs declaration;
4) the calculated tax amount which is to be paid by a
registered taxable person in the taxation period as a recipient
of service;
5) the calculated tax amount from the acquisition of goods in
the territory of the European Union;
6) the calculated tax amount for the goods acquired in
accordance with Sections 141, 143, 143.1,
143.2, 143.3, and 143.4 of this
Law;
7) the calculated tax amount for the services received in
accordance with Sections 141, 142 and 143 of this Law;
8) the calculated or paid tax amounts for the goods acquired
which have been issued as small value gifts or samples of
goods;
9) the calculated or paid tax amount for goods and services to
ensure the supply of goods to a taxable person who, in accordance
with the provisions of Section 6, Paragraph six of this Law, is
deemed to have received and supplied the goods itself to a person
who is not a taxable person.
(2) The input tax is also such tax amounts laid down in
Paragraph one of this Section for the goods supplied and services
received for ensuring the services referred to:
1) in Section 52, Paragraph one, Clauses 20 and 21 of this Law
if the recipient of services is a person of a third country or
third territory;
2) in Section 52, Paragraph one, Clauses 20 and 21 of this Law
if the transactions made are directly related to exportation of
goods.
(3) A registered taxable person has the right to deduct a
compensation disbursed to the farmer as the input tax from the
tax amount payable into the State budget in accordance with
Section 135 of this Law.
(31) A registered taxable person has the right to
deduct as input tax from the tax amount payable into the State
budget the tax amount which is indicated in such invoice for the
supply of water, thermal energy, electricity or gas or for the
services of sewerage or household waste removal:
1) which is issued by a person which ensures the
administration of buildings and which is operating as an
intermediary between the actual supplier of such goods or
services and the recipient of such goods and services shall
receive consideration from the recipient of such goods or
services for the goods and services and the tax to be transferred
in full amount to the actual supplier of goods or services;
2) in which the name of the actual supplier of goods or
services, registration number in the State Revenue Service Value
Added Tax Taxable Persons Register, the date and number of the
invoice, the value of goods or services and the tax amount is
indicated separately.
(4) A registered taxable person has the right to deduct the
input tax from the tax amount payable into the State budget,
unless laid down otherwise in this Law.
(5) The input tax shall be deducted by indicating the amount
of input tax in a tax return and reducing the tax amount payable
into the State budget for such value.
(6) A registered taxable person, in performing input tax
deductions, has an obligation to ascertain whether the registered
taxable person has submitted a tax invoice. Such information may
be obtained from the State Revenue Service or in the database of
taxable persons which is publicly accessible on the Internet.
(7) In order to exercise the right to deduct input tax, a
registered taxable person has an obligation to retain the
received tax invoice for the transaction made and the invoice
referred to in Paragraph 3.1 of this Section.
(8) Adjustment of input tax shall be made in the cases laid
down in this Chapter.
[6 November 2013; 30 November 2015; 16 June 2016; 23
November 2016; 27 July 2017; 30 May 2019; 15 October 2020; 10
February 2022]
Section 93. Right to Deduct the
Input Tax for Goods Acquired, Services Received and Goods
Imported Prior to Registration in the State Revenue Service Value
Added Tax Taxable Persons Register
(1) A taxable person, also a taxable person of another Member
State and a taxable person of a third country or third territory,
after registration in the State Revenue Service Value Added Tax
Taxable Persons Register has the right to deduct the input tax
calculated in accordance with Section 92 of this Law from the tax
amount payable into the State budget for the goods and services
acquired or received by such person prior to registration in the
State Revenue Service Value Added Tax Taxable Persons
Register.
(2) Paragraph one of this Section shall not be applicable to
the acquisition of passenger cars, except when a passenger car is
used or it will be used for ensuring such taxable transactions as
driver skills training, provision of taxi services, provision of
leasing services of passenger cars, transactions of supply of
passenger cars or hire purchase transactions.
(3) Paragraph one of this Section shall not be applicable to
administrative expenses (including lease of office premises,
office maintenance services, electronic communications services,
purchase of fuel, leasing services of vehicles), which have
incurred prior to registration of a person in the State Revenue
Service Value Added Tax Taxable Persons Register.
(4) The right referred to in Paragraph one of this Section
shall not be applicable to:
1) goods that have been acquired more than 12 months before
the day when a taxable person is deemed as registered in the
State Revenue Service Value Added Tax Taxable Persons
Register;
2) services that have been received more than three months
before the day when a taxable person is deemed as registered in
the State Revenue Service Value Added Tax Taxable Persons
Register.
(5) The deductible input tax referred to in Paragraph one of
this Section shall not be applicable to:
1) goods recorded in stocks, also to the goods manufactured by
the taxable person itself on the basis of the inventory results
on the day when the taxable person is deemed as registered in the
State Revenue Service Value Added Tax Taxable Persons
Register;
2) fixed assets according to the balance value thereof on the
day when the taxable person is deemed as registered in the State
Revenue Service Value Added Tax Taxable Persons Register, on the
basis of the list approved by an authorised person of the taxable
person;
3) goods and services which the taxable person has used for
fixed assets manufactured or built by itself, if they are not
accepted for service - the amount of deductible input tax is to
be formed by expenses directly related to the establishment of
fixed assets for the received goods and services on the basis of
the list approved by an authorised person of the taxable
person;
4) services on the basis of the list approved by an authorised
person of the taxable person.
(6) When applying Paragraph five of this Section, a natural
person (registered taxable person) who is conducting economic
activity and is a personal income taxpayer who is earning income
from its economic activity, in acquiring a fixed asset, shall
determine the amount of deductible input tax by drawing up a
statement indicating the planned proportion of use of the fixed
asset for the ensuring of such transactions which give the right
to deduct input tax, and for the ensuring of such transactions
which do not give the right to deduct input tax.
(7) After registration in the State Revenue Service Value
Added Tax Taxable Persons Register a taxable person shall submit
the first tax return and concurrently also the documents
therewith substantiating the deductible input tax in Paragraph
five of this Section.
Section 94. Deduction of Input Tax
in Transactions of a VAT Group
(1) Goods and services which the members of a VAT group
acquire or receive for the ensuring of the economic activity from
the persons who are not members of the VAT group shall be deemed
as acquired or received for the needs of the VAT group, and the
tax which is indicated in tax invoices received for the
abovementioned goods and services for the ensuring of taxable
transactions shall be deemed as input tax of the VAT group.
(2) If members of a VAT group make taxable transactions and
non-taxable transactions, the VAT group in accordance with the
procedures laid down in Section 98, Paragraph one of this Law
shall ensure a separate or partially separate accounting of those
goods and services which are used for the making of taxable or
non-taxable transactions and the input tax shall be deducted in
accordance with the procedures for the accounting and deduction
of input tax developed by the VAT group and approved by the
members of the VAT group.
(3) If a VAT group cannot ensure a separate or partially
separate accounting for the acquired goods and received services
in respect of which the VAT group, the members of which make
taxable and non-taxable transactions in accordance with the
procedures laid down in Section 98, Paragraph two of this Law,
the input tax in a tax return submitted by the principal
undertaking shall be deducted in conformity with the proportion
of the VAT group or at the level of each member - in conformity
with the actual use proportion of each member, unless it is
otherwise provided for in this Section.
(4) Tax for the acquired goods and received services for the
ensuring of such transactions which are made between members of a
VAT group shall be deductible as input tax in accordance with the
procedures laid down in Paragraph two or three of this Section,
if transactions mutually made by the members of the VAT group, in
which the abovementioned goods and services are used directly or
indirectly, are ended by a taxable transaction.
(5) A VAT group shall deduct input tax in accordance with the
procedures laid down in this Section by taking into account the
transactions made by all members of the VAT group.
(6) A VAT group shall take over the commitments of making
adjustments from the day of registration thereof or from the day
of adding a new member, if an immovable property registered or to
be registered in the State Revenue Service in accordance with the
procedures laid down in Section 99 of this Law is in the
ownership of its member, and continue making adjustments of input
tax in conformity with the procedures for the accounting and
deduction of input tax developed by the VAT group and approved by
the members of the VAT group.
(7) A VAT group shall take over the commitments of making
adjustments from the day of its registration or from the day of
adding a new member, if a fixed asset the acquisition or
manufacture value (without tax) of which reaches or exceeds EUR
70 000 is in the ownership of its participant, and continue
making adjustments of input tax in conformity with the procedures
for the accounting and deduction of input tax developed by the
VAT group and approved by the members of the VAT group.
[19 September 2013; 23 November 2016]
Section 95. Deduction of Input Tax
for a Fiscal Representative
(1) A registered taxable person to whom a registration number
of a fiscal representative has also been issued shall deduct the
tax indicated in the received tax invoices for the goods and
services for ensuring activities of the fiscal representative as
input tax in a tax return. The abovementioned deductions shall
not be made in the tax return of a fiscal representative.
(2) A fiscal representative shall indicate the following as
input tax in its tax return:
1) the tax amount calculated for imported goods in accordance
with a special tax arrangement for transactions of importation of
goods in conformity with a customs declaration;
2) the tax amount calculated, if it makes inland acquisition
of goods in the territory of the European Union, representing a
taxable person of another Member State or a taxable person of a
third country or third territory.
[19 February 2015]
Section 96. Deduction of Input Tax
for a Natural Person who is a Registered Taxable Person
(1) Input tax for a natural person who is a registered taxable
person shall be formed by the tax amount referred to in Section
92, Paragraph one of this Law for the acquired goods and received
services only in such amount in which the received goods and
services according to their economic nature are related to
ensuring taxable transactions made within the framework of
economic activity of the abovementioned person, including tax
amounts for:
1) the received transport services, vehicle repair, technical
maintenance services and purchased fuel - in proportion to ratio
of kilometres driven in a taxation period for ensuring taxable
transactions within the framework of economic activity;
2) the electronic communications services received for
ensuring taxable transactions within the framework of economic
activity - in conformity with the itemised list of printout of
the supplier of electronic communications services for a taxation
period or in proportion to the ratio of the services used for
ensuring taxable transactions made within the scope of economic
activity in the total amount of services received;
3) the phone subscription fee - in proportion to the ratio of
conversations made for ensuring taxable transactions within the
framework of economic activity in the total sum for
conversations.
(2) In order to deduct input tax, a natural person who is a
registered taxable person shall comply with the conditions of
Sections 98 and 100 of this Law.
[6 November 2013]
Section 97. Time of Deducting Input
Tax
(1) Input tax for the received goods or services, except for
the services received from taxable persons of another Member
State or taxable persons of third countries or third territories
the place of supply of which is determined in accordance with
Section 19, Paragraph one of this Law, shall be deducted from the
tax amount payable into the State budget in such taxation period
when the goods or services were received and tax invoice was
received or consideration for the supply of goods or services has
been paid prior to the receipt of goods or services, but not
later than the next taxation period following this taxation
period, unless laid down otherwise in this Law.
(2) The input tax for the acquisition of goods in the
territory of the European Union may be deducted when the tax for
the acquisition of goods in the territory of the European Union
is included in a tax return in accordance with Section 121,
Paragraph one of this Law.
(3) If a registered taxable person receives a tax invoice from
another registered taxable person with a notation "cash
accounting", the input tax for the received goods or services
shall be deducted from the tax amount to be paid into the State
budget not earlier than in the taxation period in which such
registered taxable person has paid the tax amount indicated in
the received tax invoice.
(4) Input tax for the received service, in respect of which a
recipient of service pays tax into the State budget in accordance
with Sections 141, 142 and 143 of this Law, shall be deductible
from the tax amount to be paid into the State budget in the
taxation period when the service is received and tax invoice is
received or an advance payment is made for such service in
accordance with the invoice.
(5) Input tax for the goods acquired in accordance with
Sections 141, 143, 143.1, 143.2,
143.3, and 143.4 of this Law shall be
deductible from the tax amount to be paid into the State budget
in the taxation period when the goods are received and tax
invoice is received or an advance payment is made for such goods
in accordance with the invoice.
(6) Input tax for the services received from taxable persons
of another Member State or taxable persons of third countries or
third territories, the place of supply of which is determined in
accordance with Section 19, Paragraph one of this Law, shall be
deducted from the tax amount to be paid into the State budget
after receipt of such services or when it is paid in advance for
such service in accordance with the invoice.
(7) Input tax for the importation of goods shall be deducted
in the taxation period when the importation of goods is
performed.
(8) If the tax for the imported goods is paid in advance, such
tax amount paid in advance shall be deducted as input tax in the
tax return for such taxation period when the advance payment was
made.
(9) The tax paid in accordance with the procedures referred to
in Section 124, Paragraph one of this Law shall be deductible
from the tax amount to be paid into the State budget in the
taxation period in which the tax is paid into the State
budget.
(10) The tax paid in accordance with the procedures referred
to in Section 124, Paragraph two of this Law shall be deductible
from the tax amount to be paid into the State budget in the
taxation period in which the goods are dispatched or the supply
of a service is commenced.
(11) The right of deducting input tax referred to in Section
93, Paragraph one of this Law shall be implemented in the
taxation period in which the first tax return is submitted after
registration in the State Revenue Service Value Added Tax Taxable
Persons Register.
(12) At an auction organised by a bailiff or administrator of
insolvency proceedings the tax amount indicated in the tax
invoice for the acquisition of property shall be deducted as an
input tax after:
1) the time limit for the appeal of the calculation drawn up
by the bailiff or administrator of insolvency proceedings has
expired and such calculation is not appealed or, if such
calculation is appealed, when a court ruling on the drawn up
calculation has entered into effect;
2) tax invoice is received from the bailiff or administrator
of insolvency proceedings.
[30 November 2015; 16 June 2016; 23 November 2016; 20 April
2017; 27 July 2017; 30 May 2019 / Amendment to Paragraph
five regarding the replacement of the figures and words "142,
143, 143.1, 143.2, 143.3,
143.4, and 143.5" with the figures and
words "143, 143.1, 143.2, 143.3,
and 143.4" shall come into force on 1 January 2020.
See Paragraph 34 of Transitional Provisions]
Section 98. Proportion for the
Calculation of Deductible Part of Input Tax
(1) A registered taxable person for the needs of deduction of
input tax shall ensure a separate accounting of the goods and
services which are used only for the ensuring of such
transactions which give the right to deduct input tax or only for
ensuring such transactions which do not give the right to deduct
input tax.
(2) If the goods acquired and services received are used for
ensuring the transactions which give the right to deduct input
tax and also for ensuring the transactions which do not give the
right to deduct input tax and separate accounting thereof cannot
be ensured in accordance with the procedures laid down in
Paragraph one of this Section because the use of the resources of
a registered taxable person would be disproportionate in respect
of ensuring further more detailed cost allocation, the registered
taxable person shall calculate the amount of input tax to be
deducted in a taxation period by using the following
proportion:
1) as numerator - the value of such transactions without tax
made in a taxation period which give the right to deduct input
tax;
2) as denominator - the total value of the transactions
without tax made in a taxation period (the value of transactions
included in the numerator which give the right to deduct input
tax and the value of such transactions which do not give the
right to deduct input tax).
(3) The value of imported goods, the value of the acquisition
of goods in the territory of the European Union and the value of
such goods and services, in respect of which a registered taxable
person pays tax as the recipient of such goods and services,
shall not be included in the numerator of the proportion laid
down in Paragraph two of this Section.
(4) A registered taxable person has the right not to include
the value of financial service or transaction with immovable
property in the proportion referred to in Paragraph two of this
Section, if atypical financial service has been supplied or
atypical transaction with immovable property has been made, such
transaction is of incidental nature and it clearly differs from
the type of economic activity conducted by the registered taxable
person.
(5) If the value of taxable transactions made by a registered
taxable person in a pre-taxation year is less than five per cent
of the total value of transactions and it applies Section 117,
Paragraph three of this Law, it shall deduct the input tax for
the goods acquired and services received for the calculation of
the tax for the making of taxable transactions in accordance with
Paragraph one of this Section.
(6) If a registered taxable person uses the goods acquired and
services received for both ensuring the transactions which give
the right to deduct input tax and for ensuring the transactions
which do not give the right to deduct input tax, and separate
accounting thereof cannot be ensured, as well as the value of the
transactions made by the registered taxable person which give the
right to deduct input tax is more than 95 per cent of the value
of total transactions in a taxation period, it has the right to
deduct the tax for the goods acquired and services received in
full amount, not applying the proportion laid down in Paragraph
two of this Section.
(7) Prior to submitting an annual return a registered taxable
person who uses the procedures laid down in Paragraphs two and
six of this Section for the deduction of input tax in a taxation
period shall recalculate the proportion of transactions in
general for the year and adjust the amount of deductible input
tax and of the tax to be paid into the State budget.
(8) Public persons registered in the State Revenue Service
Value Added Tax Taxable Persons Register may deduct input tax, if
separate accounting of the goods and services used only for
ensuring such transactions which give the right to deduct input
tax is ensured.
(9) The ratio referred to in Paragraph two of this Law for the
calculation of the part of input tax to be deducted shall be
determined each year in form of percentage, rounding it up to the
number that does not exceed the next round number.
[6 November 2013]
Section 99. Deduction of Input Tax
in Transactions with Immovable Property and Registration of
Immovable Property
(1) A registered taxable person has the right to deduct input
tax in accordance with the procedures laid down in this Section
in respect of the following transactions with immovable
property:
1) acquisition of unused immovable property;
2) acquisition of used immovable property if tax has been
applied to the sale of such immovable property in accordance with
Section 144 of this Law;
3) construction, rebuilding, renewal or restoration of
immovable property.
(2) If the immovable property is intended to be used only for
ensuring of such transactions which give the right to deduct
input tax, a registered taxable person shall deduct the input tax
in full amount in respect of the transactions referred to in
Paragraph one of this Section.
(3) If the immovable property is intended to be used only for
economic activity, including for ensuring of the transactions
which give the right to deduct input tax and for ensuring of the
transactions which do not give the right to deduct input tax, a
registered taxable person shall deduct the tax for the
transactions referred to in Paragraph one of this Section in
conformity with the conditions referred to in Paragraph one or
two of Section 98.
(4) If the immovable property is intended to be used for both
the needs of economic activity and other purposes which are not
related to economic activity of a taxable person, the registered
taxable person shall calculate the input tax in accordance with
Paragraph three of this Section for that part of the immovable
property which is intended for the use for the needs of economic
activity.
(5) If the immovable property is intended to be used only for
such purposes which are not related to economic activity of a
registered taxable person, the tax shall not be deductible as
input tax in respect of the transactions referred to in Paragraph
one of this Section.
(6) The procedures laid down in this Section for the deduction
of input tax shall be applied also by the registered taxable
person referred to in Section 142, Paragraph three of this Law in
respect of construction services referred to in Section 142,
Paragraph four of this Law, which it receives in accordance with
the procurement procedure laid down in the Public Procurement Law
or as a public partner in accordance with the Law on
Public-Private Partnership.
(7) A registered taxable person shall register any immovable
property referred to Paragraph one of this Section with the State
Revenue Service, unless it is laid down otherwise in this
Law.
(8) Immovable property shall be registered with the State
Revenue Service also if it is initially intended to be used only
for non-taxable transactions or for the purposes which are not
related to economic activity of the taxable person and input tax
is not deducted in respect of it. Such condition shall not be
applicable to cases when immovable property is used only to
fulfil the State administration functions or tasks.
(81) Immovable property more than 99 per cent of
which are used for taxable transactions and which in accordance
with laws and regulations should not be alienated and is
necessary in order to provide regulated public services, need not
be registered with the State Revenue Service in accordance with
Paragraph seven of this Section, and a report on the use of
immovable property in accordance with Paragraph nine of this
Section need not be submitted.
(9) Immovable property shall be registered by submitting
Section A of a report on the use of the immovable property
together with a tax return for the taxation period in which it
was acquired or accepted for service.
(10) In registering immovable property, the total tax amount
for the acquisition of goods or receipt of services referred to
in Paragraph one of this Section, as well as the deducted amount
of input tax shall be indicated, indicating the proportions of
the use of the immovable property in conformity with:
1) the needs of economic activity and other purposes which are
not related to economic activity of the taxable person;
2) taxable and non-taxable transactions.
(11) The deducted input tax is input tax which has been
deducted by a registered taxable person in conformity with the
proportions of the use of immovable property referred to in
Paragraphs two, three, and four of this Section at the time when
immovable property is registered with the State Revenue
Service.
(12) The total amount of tax is to be formed by the amount of
tax:
1) that is indicated in tax invoices received from another
registered taxable person for the transactions referred to in
Paragraph one of this Section;
2) that is calculated in accordance with Sections 141 and 142
of this Law;
3) that, in accordance with this Law, is calculated by a
registered taxable person as the recipient of goods or
services;
4) that is calculated for the importation of goods.
(13) A registered taxable person has the right to deduct input
tax for unused immovable property which has been acquired before
1 October 2011, at the time when it sells such immovable
property, if at the time of acquisition of immovable property the
input tax was not deducted and the immovable property is sold as
unused immovable property.
[6 November 2013; 20 April 2017]
Section 100. Restrictions for the
Deduction of Input Tax
(1) 60 per cent of the tax for the goods acquired and services
received for the representation needs which are related to
organising of public conferences, receptions and meals, as well
as manufacture of items representing registered taxable persons
shall not be deductible as the input tax from the tax amount to
be paid into the State budget.
(11) The following tax amount shall not be
completely deducted as input tax from the tax amount to be paid
into the State budget:
1) the acquisition, leasing and importation of such passenger
car, the number of seats in which, excluding the driver's seat,
does not exceed eight seats, or the acquisition, lease and
importation of such lorry with a weight of up to 3000 kilograms
which has been registered as a van and has more than three seats
(including the driver's seat), if the value of the abovementioned
cars corresponds to the value of representation car specified in
the laws and regulations governing enterprise income tax;
2) the costs, which are related to the maintenance of the cars
referred to in Clause 1 of this Paragraph (including costs for
the repair of such cars and purchase of fuel).
(2) 50 per cent of the tax for an acquired, leased or imported
passenger car the number of seats of which, not including the
driver's seat, does not exceed eight seats and which is not any
of the cars referred to in Paragraph 1.1, Clause 1 of
this Section, as well as the costs related to the maintenance of
such car, including expenses for repair of the car and purchase
of fuel shall not be deductible as the input tax from the tax
amount to be paid into the State budget.
(3) Paragraphs 1.1 and two of this Section shall
not apply to cases when:
1) a registered taxable person acquires, leases or imports a
car for the making of the following taxable transactions:
a) passenger transport operations for consideration, including
for the supply of taxi services;
b) provision of leasing services of cars;
c) sale of cars or hire purchase transactions;
d) provision of goods transport services;
e) driver skills training;
f) provision of security guard services;
2) a car is an emergency vehicle;
3) a car is used as a demonstration car of an authorised car
dealer;
4) a car is used for ensuring taxable transactions.
(4) In order to prove conformity with the condition referred
to in Paragraph three, Clause 4 of this Section, a registered
taxable person shall keep records of the journeys related to the
performance of economic activity by using a route control system
- a device which detects signals emitted by satellites of the
global positioning system (GPS) and determines coordinates of a
car in real time and place. If the company car tax is to be paid
for a car, then a registered taxable person shall keep records of
the journeys related to the performance of economic activity in
accordance with the laws and regulations governing company car
tax and has also declared such car in the State register on the
vehicles and the drivers thereof in accordance with the laws and
regulations governing company car tax.
(5) Tax amount indicated in tax invoices shall be deductible
as the input tax for the expenses of purchase of fuel for the
cars referred to in Paragraph three of this Section on the basis
of the number of kilometres actually driven and not exceeding the
fuel consumption norm of a city cycle specified by a
manufacturing plant by more than 20 per cent.
[6 November 2013; 30 November 2015; 23 November
2016]
Section 101. Adjustment of Input Tax
in Transactions with Fixed Assets, Except for Transactions with
Immovable Property
(1) Conditions of this Section shall apply to fixed assets the
acquisition or manufacture value of which without tax reaches or
exceeds EUR 70 000, except for transactions with immovable
property.
(2) A registered taxable person shall make an adjustment of
input tax in accordance with the procedures laid down in this
Section in respect of the acquired or manufactured fixed asset
referred to in Paragraph one of this Section for which input tax
has been deducted in conformity with the requirements laid down
in Section 98, Paragraph one or two of this Law.
(3) Adjustment period of input tax shall be five years
including the year in which a fixed asset is acquired or
manufactured.
(4) Adjustment of input tax shall be made by submitting an
annual tax return for each taxation year starting from the
acquisition or manufacture year of the fixed asset.
(5) Adjustment of input tax shall be made by calculating the
difference between one fifth of the deducted input tax and input
tax deductible in the relevant taxation year in conformity with
the requirements laid down in Section 98, Paragraph one or two of
this Law.
(6) Adjustment of input tax shall not be made, if the
proportion of the use of the fixed asset for transactions which
give the right to deduct input tax and for transactions which do
not give the right to deduct input tax has not changed in a
taxation year.
(7) A registered taxable person shall ensure separate
accounting of the deducted input tax for each fixed asset
indicating the adjustment of the deducted input tax made in each
taxation year.
[19 September 2013; 23 November 2016]
Section 102. Adjustment of Input Tax
in Transactions with Immovable Property
(1) A registered taxable person shall, within 10 years
starting from the taxation year in which an immovable property is
acquired or accepted for service and subsequent nine years until
1 May of the post-taxation year, inform the State Revenue Service
of the use of the immovable property in a taxation year in
conformity with the proportions referred to in Section 99,
Paragraphs two, three and four of this Law and the tax amount to
be paid into the budget or to be refunded from the budget by
submitting Section B of the report on the use of the immovable
property together with the annual tax return.
(2) A registered taxable person shall make adjustment of input
tax for each taxation year separately for each immovable
property, calculating the difference between one tenth of the
deducted input tax and input tax to be deducted in the relevant
taxation year, in conformity with the use of the immovable
property laid down in Section 99, Paragraphs two, three and four
of this Law. The registered taxable person shall pay such
difference into the State budget or receive it back from the
State budget.
(3) Deductible input tax shall be the input tax which is
calculated by a registered taxable person for each taxation year
by multiplying one tenth from the total tax amount by the
proportion of the use of the immovable property intended for the
needs of economic activity in respect of transactions which give
the right to deduct input tax and transactions which do not give
the right to deduct input tax in the relevant taxation year.
(4) If a registered taxable person sells unused immovable
property, it shall not make adjustment of input tax and shall
notify the State Revenue Service of the exclusion of the
immovable property from the register.
(5) If immovable property (or part thereof) other than unused
immovable property is sold within 10 years, starting from the
taxation year in which the immovable property was acquired or
accepted for service, a registered taxable person shall:
1) notify the State Revenue Service of the exclusion of the
immovable property (or part thereof) from the register by
submitting Section C of the report on the use of immovable
property together with a tax return for the taxation period in
which the immovable property was sold;
2) refund the amount of the deducted input tax into the State
budget, calculating it by multiplying one tenth of the deducted
input tax by full number of years left from the year following
the year of selling until the 10 years referred to in Paragraph
one of this Section;
3) refund into the State budget the amount of the deducted
input tax regarding the year when the immovable property (or part
thereof) was sold, calculating by multiplying one
hundred-twentieth part of the deducted input tax by full number
of months left from the month following the month of selling
until the end of the year;
4) make adjustment of input tax for the year of selling until
the month in which the immovable property was sold;
5) include the amount of input tax to be refunded in the value
of the immovable property, and the purchaser does not have the
right to deduct it from the tax amount to be paid into the State
budget;
6) if a part of the immovable property is sold, making of the
adjustment of input tax shall be continued for the remaining part
of the immovable property.
(6) If used immovable property or a part thereof is sold in
accordance with Section 144 of this Law, a registered taxable
person shall:
1) notify the State Revenue Service of the exclusion of the
immovable property (or part thereof) from the register by
submitting Section C of the report on the use of immovable
property together with a tax return for the taxation period in
which the immovable property was sold;
2) make adjustment of input tax for the time period until the
month in which the immovable property was sold;
3) if a part of the immovable property is sold, making of the
adjustment of input tax shall be continued for the remaining part
of the immovable property in conformity with the conditions of
this Section;
4) if immovable property which in accordance with Section 99
of this Law is registered with the State Revenue Service and
regarding which input tax has not been initially deducted fully
or partially is sold within nine years after the taxation year in
which it was acquired or accepted for service, and at the time of
sale the tax is applied to supply of immovable property, a
registered taxable person shall deduct the remaining amount of
input tax not deducted from the month following the month of
selling until the 10 years referred to in Paragraph one of this
Section as it is laid down in Paragraph five, Clause 2 of this
Section.
(7) If an immovable property or a part thereof within 10 years
after acquisition or acceptance for service thereof has perished
or has been destroyed due to a natural disaster or in another
forced way and it has been proved by documentary means, a
registered taxable person shall:
1) notify the State Revenue Service of the exclusion of the
immovable property or part thereof from the register by
submitting Section C of the report on the use of immovable
property together with a tax return for the taxation period in
which the documents attesting the loss were drawn up on the
abovementioned immovable property;
2) make adjustment of input tax regarding a time period until
the month in which the immovable property or part thereof was
excluded from the register;
3) continue to make adjustment of input tax regarding the
remaining part of the immovable property, if a part of the
immovable property has perished or has been destroyed due to a
natural disaster or in another forced way.
(8) The adjustment of input tax laid down in this Section need
not be made and Section B of the report on the use of immovable
property or a part thereof need not be submitted together the
annual tax return if changes in the proportion referred to in
Section 99, Paragraph ten, Clause 1 or 2 of this Law do not
exceed one per cent.
(9) [6 November 2013]
(10) If a registered taxable person carries out new
rebuilding, renewal or restoration for rebuilt, renewed or
restored immovable property within 10 years, he or she shall
submit a tax return for the taxation period in which such part of
the immovable property was accepted for service and Section A of
the report on the use of immovable property. Adjustment of the
deducted input tax shall be made irrespective of the previously
made input tax adjustment of the registered immovable
property.
(11) If a registered taxable person demolishes the immovable
property (or a part thereof) within 10 years after acquisition of
the immovable property or acceptance for service thereof, it
shall:
1) notify the State Revenue Service of the exclusion of the
immovable property (or part thereof) from the register by
submitting Section C of the report on the use of immovable
property together with a tax return for the taxation period in
which the immovable property was demolished;
2) refund the amount of the deducted input tax into the State
budget, calculating it by multiplying one tenth of the deducted
input tax by full number of years left from the year following
the year of demolition until the 10 years referred to in
Paragraph one of this Section;
3) refund into the State budget the amount of the deducted
input tax for the year of demolition of the immovable property
(or part thereof), calculating it by multiplying one
hundred-twentieth part of the deducted input tax by full number
of months left from the month following the month of selling
until the end of the year;
4) make adjustment of input tax for the year of selling until
the month in which the immovable property was demolished;
5) if a part of the immovable property is demolished, making
of adjustment of input tax shall be continued for the remaining
part of the immovable property.
(12) Adjustment of the input tax in respect of the year of
selling the immovable property (or a part thereof) or the year
when the immovable property was demolished, perished or destroyed
due to a natural disaster or in another forced way, or the
documents were drawn up, which attest the transfer of the
immovable property to the acquiring company, shall be included in
Section C of the report on the use of the immovable property
until the month in which the immovable property is excluded from
the register.
(13) Adjustment of the input tax specified in this Section
need not be made and Section B of the report on the use of
immovable property need not be submitted, if a registered taxable
person has acquired a plot of land together with a building or
structure for the purpose of demolishing such building or
structure in order to build another building or structure in its
place for the making of taxable transactions.
[6 November 2013; 20 April 2017]
Section 103. Adjustment of Input Tax
on Investments in Capital of a Commercial Company, and also in
Case of Transfer and Reorganisation of the Undertaking
(1) Adjustment of input tax shall be made regarding property
investments (including fixed asset, immovable property
investments) in capital of a commercial company in exchange for
certificates of securities and capital shares, unless otherwise
provided for in this Section.
(2) If a registered taxable person makes property investment
(including investing of fixed asset, except immovable property)
into equity capital of another person and the property investment
is not intended to be used for taxable transactions or the
property investment is invested in equity capital of a
non-registered taxable person, the part of the deducted input tax
shall be refunded to the State budget and calculated as
follows:
1) for fixed assets and intangible investments - from the
remaining (undepreciated) value of the fixed asset or intangible
investment recorded in the financial accounting of the registered
taxable person;
2) for other property investment - the part of the deducted
input tax for goods which were acquired for ensuring of one's own
taxable transactions.
(21) A registered taxable person shall not refund
the part of the deducted input tax into the State budget in
accordance with the procedures laid down in Paragraph two of this
Section, if it makes property investment (including investing of
fixed asset, except immovable property) in the capital of the
following commercial company:
1) in the capital of a newly founded commercial company which
registers in the State Revenue Service Value Added Tax Taxable
Persons Register within 30 days after registration with the
Commercial Register Office;
2) in the capital of the acquiring commercial company which
informs the State Revenue Service of changes in the composition
of the property investment and of the relevant entry made in the
Commercial Register Office, and the property investment is
intended to be used for taxable transactions.
(3) If a registered taxable person invests the immovable
property (or a part thereof) within 10 years after acquisition of
the immovable property or acceptance for service thereof as a
property investment in capital of a commercial company or
transfers it to the acquiring company after reorganisation or
transfer of the undertaking, it shall:
1) notify the State Revenue Service of the exclusion of the
immovable property or a part thereof from the register by
submitting Section C of the report on the use of immovable
property together with a tax return for the taxation period in
which the investment was made or the fact of transfer of the
immovable property was approved;
2) make adjustment of the input tax for a time period until
the month in which documents attesting the transfer of immovable
property were drawn up;
3) terminate the making of adjustment of input tax regarding
the immovable property (or part thereof) starting from the next
month following the month in which the documents attesting the
transfer of immovable property were drawn up.
(4) Paragraph three of this Section shall be applicable if the
immovable property as a property investment is invested in
capital of a newly founded or acquiring commercial company and
the newly founded commercial company within 30 days after making
of the relevant entries in the Commercial Register Office submits
a submission to the State Revenue Service for registration in the
State Revenue Service Value Added Tax Taxable Persons Register
and within 60 days after making of the relevant entries in the
Commercial Register Office it is registered as a registered
taxable person, but the acquiring commercial company (a
registered taxable person) informs the State Revenue Service of
changes in the composition of property investment. In such case
the newly founded or acquiring commercial company shall
re-register immovable property in conformity with Section 99,
Paragraph seven of this Law and continue adjustment of input
tax.
(5) If a newly founded or acquiring commercial company fails
to meet the requirements referred to in Paragraph four of this
Section, a registered taxable person who invests immovable
property or a part thereof as property investment in commercial
company capital shall refund into the State budget the amounts of
deducted input tax, which are calculated:
1) by multiplying one tenth from the deducted input tax by
full number of years left from the year following the year of
drawing up of documents attesting the fact of performance of
property investment until the 10 years referred to in Section
102, Paragraph one of this Law;
2) by multiplying one hundred-twentieth from the deducted
input tax by full number of months left from the months following
the months of drawing up of documents attesting the fact of
making the property investment until the end of the year.
(6) Adjustment of the input tax shall not be made regarding
transfer of an undertaking into the ownership or use of another
registered taxable person, if within 30 days after the fact of
the transfer of the undertaking the acquirer of the undertaking
(successor in rights and obligations) who continues to perform
economic activity with the acquired undertaking informs the State
Revenue Service thereof.
(7) If as a result of investment in the capital of a
commercial company and transfer of an undertaking a newly founded
or acquiring commercial company which is a registered taxable
person acquires immovable property, it shall re-register such
immovable property in the State Revenue Service on its behalf in
conformity with Section 99, Paragraph seven of this Law and
continue adjustment of input tax.
(8) If as a result of reorganisation a newly founded or
acquiring commercial company which is a registered taxable person
acquires immovable property, it shall on the basis of the
information on the transferred immovable property which has been
provided by a registered taxable person who transfers such
immovable property and which is co-ordinated with the State
Revenue Service, re-register such immovable property in the State
Revenue Service on his behalf in conformity with Section 99,
Paragraph seven of this Law and continue adjustment of input
tax.
[6 November 2013; 28 November 2019]
Section 104. Adjustment of Input Tax
by Excluding a Registered Taxable Person from the State Revenue
Service Value Added Tax Taxable Persons Register
(1) If a taxable person has been excluded from the State
Revenue Service Value Added Tax Taxable Persons Register in
accordance with Section 73, Paragraph one, Clause 1, 2, or 12 of
this Law, it shall, within 30 days after exclusion, submit a
notification on the payment of the tax which includes the tax
amount payable into the State budget which is calculated from the
value of stocks and advance payments present in the accounting
records on the day of exclusion, the balance value of fixed
assets, the costs of establishment of fixed assets and unfinished
construction objects on the day of exclusion for which tax has
been deducted as input tax, and shall, within three working days
after submission of the notification on the payment of the tax,
pay the tax amount into the State budget.
(2) If a taxable person has been excluded from the State
Revenue Service Value Added Tax Taxable Persons Register in
accordance with Section 73, Paragraph one, Clause 3 of this Law,
its heir or trustee assigned by the court for the management of
estate shall, within 30 days after exclusion, submit a
notification on the payment of the tax which includes the tax
amount payable into the State budget which is calculated from the
value of stocks and advance payments present in the accounting
records on the day of exclusion, the balance value of fixed
assets, the costs of establishment of fixed assets and unfinished
construction objects on the day of exclusion for which tax has
been deducted as input tax, and shall, within three working days
after submission of the notification on the payment of the tax,
pay the tax amount into the State budget.
(3) If a taxable person has been excluded from the State
Revenue Service Value Added Tax Taxable Persons Register in
accordance with Section 73, Paragraph one, Clause 4, 5, 6, or 11,
or Paragraph three of this Law and has not been renewed or
re-registered in the State Revenue Service Value Added Tax
Taxable Persons Register, it shall, within 90 days after its
exclusion, submit a notification on the payment of the tax which
includes the tax amount payable into the State budget which is
calculated from the value of stocks and advance payments present
in the accounting records on the day of exclusion, the balance
value of fixed assets, the costs of establishment of fixed assets
and unfinished construction objects on the day of exclusion for
which tax has been deducted as input tax, and shall, within three
working days after submission of the notification on the payment
of the tax, pay the tax amount into the State budget.
(4) A fiscal representative whom the State Revenue Service
excludes from the State Revenue Service Value Added Tax Taxable
Persons Register in accordance with Section 73, Paragraph one,
Clause 10 or Section 83, Paragraph two of this Law and who has
not been re-registered with such Register shall, within 30 days
after exclusion, submit a notification on the payment of the tax
which includes calculation of the tax amount payable into the
State budget for the imported goods and goods received from other
Member States present in the accounting records on the day of
exclusion, and shall, within three working days after submission
of the notification on the payment of the tax, pay the tax amount
into the State budget.
[24 November 2020]
Section 105. Adjustment of Input Tax
for Bad Debts
(1) If the value of bad debt of a supplier of goods or
services for one recipient of goods or services without tax is
less than EUR 430, a registered taxable person has the right to
reduce the amount paid into the State budget by the amount of the
tax of bad debt, if all the conditions referred to in this
Paragraph of the Section are met:
1) an invoice or tax invoice has been issued for the goods or
services supplied;
2) the debt has arisen during the last three taxation
years;
3) tax has been calculated for the transaction made and it is
included in the tax return of the relevant taxation period;
4) the amount of the bad debt has been written off from the
amount of special provision for bad doubtful debts or directly as
losses (expenses) in the accounting of the registered taxable
person in the current taxation period or in any of the previous
taxation periods;
5) the recipient of goods or services and the supplier of
goods or services are not mutually related persons within the
meaning of the law On Taxes and Fees;
6) the supply of goods or services to the relevant recipient
of goods or services has been interrupted at least six months
before and has not been renewed;
7) a registered taxable person has not transferred (ceded) its
right to claim to another person;
8) a registered taxable person can prove that it has taken
measures for the recovery of bad debt;
9) the supplier of goods or services has sent information to
the recipient of goods or services, who is a registered taxable
person or who was a registered taxable person at the time of
supply of goods or services, by 1 March of the post-taxation year
that the relevant debt is considered bad debt within the meaning
of this Law.
(2) The day of arising of a debt shall be the next day after
the date when a recipient of goods and services had to pay to the
supplier of goods or services, however, the payment was not
made.
(21) The condition referred to in Paragraph one,
Clause 2 of this Section sets in, if within three years since the
emerging of the debt:
1) a statement of claim has been submitted to a court
regarding the recovery of debt from the recipient of goods or
services - with regard to the case referred to in Paragraph three
of this Section;
2) the bankruptcy proceedings of the recipient of goods or
services have been commenced - with regard to the case referred
to in Paragraph four of this Section;
3) the insolvency proceedings of the recipient of goods or
services have been commenced - with regard to the case referred
to in Paragraph five of this Section.
(3) If the value of bad debt of the supplier of goods or
services for one recipient of goods or services without tax has
reached or exceeded EUR 430, a registered taxable person has the
right to reduce the amount payable into the State budget by the
amount of the tax for bad debt, if the conditions referred to in
Paragraph one of this Section have been met and there is a court
judgment on debt collection from the recipient of goods or
services and a statement of a bailiff concerning the
impossibility of the collection.
(4) The supplier of goods or services has the right to reduce
the amount of the tax payable into the State budget by half from
the amount of the tax for bad debt, if the conditions of
Paragraph one, Clauses 1, 2, 3, 4, 5, 7, and 8 of this Section
have been met, the supply of goods or services has been
discontinued and the bankruptcy procedure of the recipient of
goods or services has been commenced. The supplier of goods or
services shall reduce the amount of the tax payable into the
State budget by the remaining amount of the tax for bad debt
after insolvency proceedings due to completion of the bankruptcy
procedure in relation to the recipient of goods or services have
been terminated.
(5) If the conditions referred to in Paragraph one, Clauses 1,
2, 3, 4, 5, 7, and 8 of this Section have been met, the supply of
goods or services has been discontinued, the supplier of goods or
services has the right to reduce the amount of the tax payable
into the State budget by the amount of the tax for the bad debt
which has been recognised in accordance with the Register of
Creditors' Claims when the court has approved completion of the
insolvency proceedings of the recipient of goods or services, or,
if the recipient of goods or services is a natural person, - when
the court has approved the completion of bankruptcy
procedure.
(6) A supplier of goods or services shall, in applying
Paragraphs one and three of this Section, include the amount of
the tax for bad debt in the tax return for March of post-taxation
year or for the first quarter of post-taxation year, additionally
indicating the person whose debt is considered bad debt within
the meaning of this Law, and indicate the value of the debt and
amount of tax.
(7) [23 November 2016]
(8) A recipient of goods or services who is a registered
taxable person shall refund to the State budget the deducted
amount of input tax for the unpaid bad debt after receipt of the
information referred to in Paragraph one, Clause 9 of this
Section, but not later than until 31 July of post-taxation
year.
(9) A recipient of goods or services who is a registered
taxable person shall pay into the State budget the tax amount
referred to in Paragraph eight of this Section, indicating it in
the tax return of the relevant taxation period.
(10) [23 November 2016]
(11) A recipient of goods or services who is excluded from the
State Revenue Service Value Added Tax Taxable Persons Register
shall refund to the State budget the amount of input tax deducted
for the unpaid bad debt by submitting a notification on the
payment of the tax for bad debts within the time limit laid down
in Paragraph eight of this Section. The transactions for which
the tax is refunded shall be indicated in the notification and,
within three working days after submission of this notification,
the amount of input tax deducted from the State budget for the
unpaid bad debt indicated in the notification shall be
transferred into the State budget.
(12) The State Revenue Service shall, within 30 days after
receipt of the tax return referred to in Paragraph six of this
Section, inform the recipient of goods or services who is a
registered taxable person or was a registered taxable person at
the time of supply of goods or receipt of services and who has
not paid for the supplied goods or received services, regarding
increase of the amount of tax to be paid into the State
budget.
(13) If a bad debt has been recovered fully or partly after
the adjustments provided for in this Section for the tax to be
paid into the State budget have been performed, the supplier of
goods or services shall calculate the tax for the recovered bad
debt or part thereof and pay it into the State budget in that
taxation period when the debt was paid.
(14) If the bad debt is paid to the supplier of goods or
services, the recipient of goods or services has the right to
deduct the input tax for the paid bad debt or part thereof in
that taxation period when the payment was made.
[19 September 2013; 6 November 2013; 23 November 2016; 20
April 2017; 24 November 2020]
Section 106. Adjustment of Input Tax
in Other Cases
(1) Adjustment of input tax shall be made if the amount of the
deducted input tax changes (for example, cancelled purchases or
discounts received).
(2) If goods are stolen or destroyed due to a natural disaster
or in another forced way, adjustment of the input tax shall be
made by paying the tax which has been deducted as input tax into
the State budget.
(3) Adjustment of deducted input tax, if the goods have been
stolen or destroyed due to a natural disaster or in another
forced way, shall not be made, if the fact of destruction or
theft has been proved by documentary means.
(4) In case of loss of goods, the adjustment of deducted input
tax shall be made if the value of losses of goods exceeds the
amount of losses planned in accordance with the laws and
regulations regarding enterprise income tax and personal income
tax.
[6 November 2013]
Section 107. Right of the Cabinet to
Determine and Explain the Procedures for the Deduction of Input
Tax and Adjustment of Input Tax, and the Documents or Information
to be Submitted
The Cabinet shall:
1) explain the conditions for the deduction of input tax and
adjustment of input tax;
2) determine the documents which justify the deduction of
input tax;
3) lay down the procedures for the deduction and adjustment of
input tax, if a registered taxable person makes hire purchase
transactions with immovable property;
4) lay down the information to be submitted to the State
Revenue Service which shall be submitted by a registered taxable
person who, as a result of reorganisation, transfers immovable
property to a newly founded or acquiring commercial company,
concerning such transferred immovable property.
Chapter
XII
Refund of the Overpaid Tax from the State Budget
Section 108. General Provisions for
the Refund of the Overpaid Tax from the State Budget
The amount of the overpaid tax shall be the difference between
the tax amount calculated for payment into the State budget and
deductible input tax.
Section 109. Refund of the Overpaid
Tax
(1) In performing the tax administration measures, the State
Revenue Service shall refund the approved overpaid tax amount for
the taxation period within 30 days after:
1) the time limit for the submission of the tax return laid
down in Section 118 of this Law;
2) the day of submitting the tax return, if the tax return has
been submitted after the time limit for the submission of the tax
return laid down in Section 118 of this Law;
3) the day of submitting the adjusted tax return, if an
adjusted tax return has been submitted.
(2) The State Revenue Service shall, prior to refunding the
approved overpaid tax amount, cover the personʼs taxes and fees
administered by the State Revenue Service, other statutory
payments and payments related thereto in accordance with the
procedures laid down in the law On Taxes and Fees.
(3) The State Revenue Service shall refund the overpaid tax
amount which has arisen for the VAT group to the principal
undertaking.
[24 November 2020 / See Paragraph 36 of Transitional
Provisions]
Section 110. Right of the State
Revenue Service to Extend the Time Limit for the Refund of the
Overpaid Tax
[24 November 2020]
Section 111. Refund of the Tax Paid
for the Acquisition of New Means of Transport
(1) When supplying a new means of transport to any person of
another Member State, a non-registered taxable person or a
non-taxable person has the right to request to refund from the
State budget the tax amount which has been paid for the
acquisition of the new means of transport, including for the
acquisition thereof in the territory of the European Union, or
for the importation of a new means of transport.
(2) The Cabinet shall determine the procedures by which in
accordance with this Section:
1) a non-registered taxable person or a non-taxable person
shall receive the tax amount to be refunded from the State
budget;
2) the tax amount to be refunded from the State budget shall
be calculated.
Chapter
XIII
Refund of the Tax to a Registered Taxable Person of a Third
Country or Third Territory or a Registered Taxable Person of
Another Member State and Submission of an Application by a
Registered Taxable Person for the Receipt of the Refund of the
Tax in Another Member State
Section 112. Refund of the Tax to a
Registered Taxable Person of a Third Country or Third
Territory
(1) The tax which has been paid for the goods acquired or
services received inland and for the importation of goods for the
ensuring of economic activity outside the territory of the
European Union shall be refunded to a registered taxable person
of a third country or third territory in conformity with the
parity principle, if during the time period for which it requests
the tax to be refunded such taxable person:
1) is registered its economic activity outside the territory
of the European Union;
2) conforms to the status of a registered taxable person
outside the territory of the European Union;
3) has not been registered in the State Revenue Service Value
Added Tax Taxable Persons Register;
4) has not made taxable transactions inland due to which it
has to register in the State Revenue Service Value Added Tax
Taxable Persons Register;
5) has not performed economic activity in the Republic of
Latvia to be registered in accordance with laws and
regulations.
(11) The State Revenue Service shall examine an
application of a registered taxable person of a third country or
third territory, decide on the complete or partial refund of the
tax amount indicated in the application of the registered taxable
person of the third country or third territory or the refusal to
refund the tax, and shall refund the tax amount approved for
refund within a time limit that may not exceed the time limit
laid down in Section 113, Paragraph 1.1 of this
Law.
(2) The Cabinet, in conformity with the conditions of
Paragraphs one and 1.1 of this Section, shall
determine:
1) the time limit for which the refund of the tax is requested
and the minimum amount of the tax to be refunded;
2) the procedures by which the State Revenue Service shall
decide on the complete or partial refund of the tax amount
indicated in an application of a registered taxable person of a
third country or third territory or refusal to refund the tax,
and the procedures by which the State Revenue Service shall
refund the tax to a registered taxable person of a third country
or third territory in conformity with the time limit laid down in
Paragraph 1.1 of this Section;
3) the documents to be submitted to the State Revenue Service
and time limits for the submission thereof;
4) the sample form of the application for the refunding of the
tax;
5) the cases when the State Revenue Service shall take the
decision to refuse to refund the tax amount indicated in the
application of a registered taxable person of a third country or
third territory.
[6 November 2013]
Section 113. Refund of the Tax to a
Registered Taxable Person of Another Member State
(1) The tax which has been paid for the goods acquired or
services received inland and for the importation of goods for the
ensuring of taxable transactions shall be refunded to a
registered taxable person of another Member State if during the
time period for which it requests the tax to be refunded such
taxable person:
1) was registered in the register of taxable persons of
another Member State;
2) has not performed economic activity inland to be registered
in accordance with the applicable laws and regulations;
3) has not been registered with the State Revenue Service
Value Added Tax Taxable Persons Register;
4) has not made taxable transactions inland due to which he
should register in the State Revenue Service Value Added Tax
Taxable Persons Register.
(11) The State Revenue Service shall examine an
application of a registered taxable person of another Member
State for the refund of the tax inland, decide on the complete or
partial refund of the tax amount indicated in the application of
a registered taxable person of another Member State for the
refund of the tax inland or refusal to refund the tax, and shall
refund the tax amount approved for refund not later than within
four months from the day of receipt of the application or not
later than within six months if additional information is
requested, but not later than within eight months, if additional
information is requested repeatedly.
(2) The Cabinet, in conformity with the conditions of
Paragraphs one and 1.1 of this Section, shall
determine:
1) the procedures by which the State Revenue Service shall
receive and examine an application of a registered taxable person
of another Member State for the refund of the tax inland and by
which the State Revenue Service shall decide on the complete or
partial refund of the tax amount indicated in the application of
a registered taxable person of another Member State for the
refund of the tax inland or to refuse to refund tax;
2) the procedures for refunding tax to a registered taxable
person of another Member State by the State Revenue Service in
conformity with the time limit specified in Paragraph
1.1 of this Section;
3) the cases when the State Revenue Service shall take the
decision to refuse to refund the tax amount indicated in the
application of a registered taxable person of another Member
State for the refund of the tax inland.
[6 November 2013]
Section 114. Submitting of an
Application by a Registered Taxable Person for the Receipt of the
Refund of the Tax in Another Member State
(1) A registered taxable person shall submit an application
for the receipt of the refund of the tax for the goods acquired
or services received in another Member State and for the
importation of goods for the ensuring of taxable transactions, if
during the time period, for which it requests the tax to be
refunded, such taxable person:
1) was registered in the State Revenue Service Value Added Tax
Taxable Persons Register;
2) was not registered with the register of taxable persons of
the Member State from which the refund of the tax is
requested;
3) has not made taxable transactions in the Member State from
which the refund of the tax is requested due to which it should
register with the register of taxable persons of such Member
State.
(2) The Cabinet, taking into account the conditions of
Paragraph one of this Section, shall determine:
1) the procedures by which a registered taxable person shall
submit an application to the State Revenue Service for the
receipt of the refund of the tax in another Member State;
2) the procedures by which the State Revenue Service shall
examine an application and forward it to the Member State from
which the refund of the tax is requested;
3) the information to be included in the application;
4) the time period for which the tax is requested to be
refunded and the minimum amount of the tax to be refunded.
Chapter
XIV
Taxation Period of the Tax and Tax Return
Section 115. Taxation Period of the
Tax
(1) Taxation period of the tax is one calendar month if any of
the following conditions is implemented:
1) the value of the taxable transactions made by a registered
taxable person in the pre-taxation year or taxation year exceeds
EUR 40 000;
2) a registered taxable person provides supply of goods in the
territory of the European Union to which zero per cent rate is
applied in accordance with Section 43, Paragraph four of this
Law;
3) a registered taxable person provides supply of goods in the
territory of the European Union, participating in the supply of
goods referred to in Section 16, Paragraph four of this Law;
4) a registered taxable person supplies services the place of
supply of which is determined in accordance with Section 19,
Paragraph one of this Law and the place of supply of which is
another Member State;
5) a registered taxable person provides supply of goods to a
warehouse in another Member State in accordance with Section
8.1 of this Law.
(2) The taxation period of the tax shall be one calendar
month, and such taxation period of the tax shall be preserved for
six calendar months if a registered taxable person has been
registered in the State Revenue Service Value Added Tax Taxable
Persons Register in the taxation year of the tax.
(3) The taxation period of the tax shall be one quarter for a
registered taxable person who does not conform to the conditions
referred to in Paragraph one or two of this Section.
(4) If the amount of the taxable transactions made during the
pre-taxation year has changed, the taxation period of the tax
shall be changed at the beginning of the taxation year, except in
the cases laid down in Paragraph five of this Section.
(5) If a registered taxable person for whom the taxation
period is one quarter in accordance with Paragraph three of this
Section makes the transactions referred to in Paragraph one,
Clause 2, 3, or 4 of this Section, or the value of the taxable
transactions made by this person within the taxation year exceeds
EUR 40 000, the taxation period for such registered taxable
person shall be one calendar month and it shall be preserved
until the end of the taxation year.
(6) A registered taxable person shall inform the State Revenue
Service of the change of the taxation period if the period should
change:
1) from quarter to month - by submitting a tax return for
January;
2) from month to quarter - by submitting a notification until
31 January of the taxation year;
3) from quarter to month during the taxation year in the cases
referred to in Paragraph five of this Section - by submitting a
tax return for the month in which the conditions of Paragraph
five of this Section are implemented.
(61) The person referred to in Paragraph two of
this Section shall change the taxation period to one quarter, if
he or she fails to comply with the conditions of Paragraph one of
this Section and six calendar months have elapsed from the
registration in the State Revenue Service Value Added Tax Taxable
Persons Register by submitting a notification by the twentieth
date of the seventh calendar month.
(7) The taxation period of a VAT group and fiscal
representative shall be one calendar month.
(8) For a State and local government institution or local
government which is a registered taxable person in accordance
with Section 58 of this Law only for the purpose of receipt of
the construction service referred to in Section 142, Paragraph
four of this Law a taxation period shall be one quarter.
(9) The total of the taxation periods of a calendar year shall
constitute the taxation year.
[19 September 2013; 6 November 2013; 21 November 2013; 23
November 2016; 27 July 2017; 28 November 2019]
Section 116. Tax Return
(1) A tax return shall consist of a tax return for a taxation
period and annexes to a tax return.
(2) A tax return shall have the following annexes:
1) a report on the amounts of the input tax and tax included
in the tax return for the taxation period;
2) a report on the supplies of goods and the services supplied
in the territory of the European Union;
3) a revision report on the supplies of goods and the services
supplied in the territory of the European Union;
4) [23 November 2016];
5) a report on the use of immovable property;
6) a return for the taxation year;
7) a report on the transactions made by a fiscal
representative.
(3) The Cabinet shall determine:
1) the sample forms of the tax return to be submitted for the
taxation period and of annexes thereto, as well as the procedures
for the filling in and submission thereof;
2) the documents to be submitted to the State Revenue Service
together with the tax return and the cases when such documents
need to be submitted.
[23 November 2016]
Section 117. Submission of a Tax
Return and a Notification on the Payment of Tax
(1) A registered taxable person shall submit a tax return to
the State Revenue Service regarding transactions made in a
taxation period, unless otherwise provided for in this
Section.
(2) A registered taxable person shall also submit a tax return
to the State Revenue Service in cases where it has not made
taxable transactions during the taxation period.
(3) If the value of taxable transactions made by a registered
taxable person is less than five per cent from the total value of
transactions in a pre-taxation year, it is entitled to record
only taxable transactions and include only taxable transactions
in a tax return.
(4) A registered taxable person who has not submitted a tax
return or has not submitted the tax return within the time limit
laid down in Section 118 of this Law shall not be exempted from
the payment of the tax into the State budget.
(5) A registered taxable person shall submit a return for the
taxation year in cases where:
1) the proportion of taxable and non-taxable transactions for
the taxation year changes and it is not otherwise provided for in
this Law;
2) any adjustment of the tax payable or the deducted input tax
has been made in accordance with the requirements laid down in
this Law;
3) if transactions referred to in Section 38, Paragraphs two
and three of this Law have been made;
4) if, in accordance with Section 39, Paragraph three, Clause
3 of this Law, a fee for the reusable beverage packaging to which
the deposit system is applied was not included in the taxable
value of the transaction.
(6) In the cases referred to in Paragraph five of this
Section, an annual tax return shall also be submitted, if a
registered taxable person has operated an incomplete year.
(7) A registered taxable person shall submit a report on the
supply of goods and services in the territory of the European
Union if at least one of the following conditions is met:
1) the supply of goods is provided in the territory of the
European Union;
2) the taxable person of another Member State has been
supplied with a taxable service in another Member State and the
place of supply thereof is determined in accordance with Section
19, Paragraph one of this Law;
3) the supply of goods to a warehouse in another Member State
is provided in accordance with Section 8.1 of this
Law.
(8) A person shall submit to the State Revenue Service the
notification on the payment of the tax if such tax is to be paid
into the State budget which need not be included in a tax
return.
(9) The Cabinet shall determine a sample form for the
notification referred to in Paragraph eight of this Section on
the payment of the tax and the procedures for filling in such
notification.
(10) A bailiff shall inform the State Revenue Service of the
tax paid into the State budget from the sale of property at an
auction organised by the bailiff, by submitting the notification
referred to in Paragraph eight of this Section.
(11) A VAT group shall submit the annexes to tax returns
referred to in Section 116, Paragraph two of this Law, except for
the tax return for a taxation year, for each member of the VAT
group separately.
[28 November 2019; 24 November 2020; 9 December 2021 /
The new wording of Clause 4 of Paragraph five shall come into
force on 1 February 2022. See Paragraph 41 of Transitional
Provisions]
Section 118. Time Limits for
Submitting a Tax Return and a Notification on Payment of Tax
(1) A registered taxable person shall submit the return and
the annexes thereof to the State Revenue Service within 20 days
after the end of the taxation period, unless otherwise provided
for in this Law.
(2) [12 June 2014]
(3) [12 June 2014]
(4) [24 November 2020]
(5) A registered taxable person shall submit a return for a
taxation year to the State Revenue Service until 1 May of the
next taxation year.
(6) A registered taxable person shall submit a report on the
supply of goods and services in the territory of the European
Union to the State Revenue Service within the time limit laid
down in Paragraph one of this Section for each calendar month if
it:
1) provides supply of goods in the territory of the European
Union or to a taxable person of another Member State in another
Member State;
2) supplies taxable services whose place of supply is
determined in accordance with Section 19, Paragraph one of this
Law;
3) provides supply of goods to a warehouse in another Member
State in accordance with Section 8.1 of this Law.
(7) If a time limit for the submission of a tax return is on a
holiday or public holiday, the last day of the time limit for the
submission shall be the next working day.
(8) The State Revenue Service is entitled to request that a
registered taxable person submits a tax return also in another
time, however, not more than once per calendar month.
(9) A person which is excluded from the State Revenue Service
Value Added Tax Taxable Persons Register shall submit to the
State Revenue Service a tax return and annexes thereto for the
taxation period in which such person was excluded from the State
Revenue Service Value Added Tax Taxable Persons Register within
20 days after his exclusion.
(10) The time limit for the submission of a notification on
the payment of tax shall be 20 days after the month in which the
transaction occurred regarding which the State Revenue Service is
to be informed in accordance with this Law, unless otherwise
provided for in this Law.
(11) In cases when a notification on the payment of tax is
submitted by a bailiff regarding the tax to be paid into the
State budget from the sale of the property at an auction
organised by the bailiff, the time limit for the submission of a
notification on the payment of tax shall be 20 days after the day
when the time limit for the appeal of the calculation drawn up by
the bailiff has elapsed, if such calculation has not been
appealed, or when such calculation has been appealed - after the
day when a court ruling on the calculation drawn up has entered
into effect.
[6 November 2013; 12 June 2014; 23 November 2016; 28
November 2019; 24 November 2020]
Chapter
XV
Time when the Tax is Paid into the State Budget and Tax is
Included in a Tax Return
Section 119. Time Limit for the
Payment of the Tax into the State Budget
(1) A registered taxable person shall pay the tax which is
calculated for a taxation period into the State budget within 23
days after the end of the taxation period, unless otherwise
provided for in this Section.
(2) If the total value of the taxable supplies of goods and
services made by a non-registered taxable person over the
preceding 12 months has exceeded EUR 40 000, he or she shall pay
into the State budget the tax calculated in accordance with the
procedures laid down in Section 34, Paragraph ten of this Law
within 23 days from the end of the calendar month when such sum
was exceeded.
(3) A bailiff shall pay the tax which is calculated for the
sale of the property of a registered taxable person at an auction
organised by the bailiff into the State budget within three
working days after the submission of the notification on the
payment of the tax specified in Section 118, Paragraph eleven of
this Law.
(4) A person which has been excluded from the State Revenue
Service Value Added Tax Taxable Persons Register shall pay the
tax calculated for the taxation period in which such person has
been excluded from the State Revenue Service Value Added Tax
Taxable Persons Register into the State budget within 23 days
after exclusion from the State Revenue Service Value Added Tax
Taxable Persons Register.
(5) If a person has an obligation to submit the notification
on the payment of the tax to the State Revenue Service, the tax
shall be paid into the State budget within three working days
after the submission of the notification on the payment of the
tax specified in Section 118, Paragraph ten of this Law, unless
otherwise provided for in this Law.
(6) A registered taxable person shall pay the tax calculated
in the return for the taxation year until 1 May of the next
taxation year.
[19 September 2013; 6 November 2013; 27 July 2017; 23 May
2019; 24 November 2020]
Section 120. Time when the Tax for
the Supply of Goods and Services is to be Included in a Tax
Return
(1) The tax for the goods supplied or supplied inland for
which the tax is paid by the supplier of goods or services shall
be included in the tax return for the taxation period when the
supply of goods or services was provided and a tax invoice was
issued, unless otherwise provided for in this Section.
(2) If a consideration has been received before the supply of
goods or services referred to in Paragraph one of this Section,
the tax for the received part of consideration shall be included
in the tax return for the taxation period when the consideration
was received in accordance with the tax invoice.
(21) If it is regarded that the taxable person who
performs the supply of goods has received and supplied the goods
in accordance with the conditions of Section 6, Paragraph five or
six of this Law, the tax for the supply of goods which is
performed by such taxable person and the tax for the supply of
goods to such taxable person shall be indicated in the tax return
for the taxation period when the payment was received.
(3) The tax for the supply of goods in the territory of the
European Union shall be included in the tax return for the
taxation period when the supply of goods was provided and a tax
invoice was written out, unless otherwise provided for in this
Law.
(4) If a tax invoice has not been submitted until the time
limit laid down in Section 131, Paragraph one of this Law or it
has been issued with delay, the tax for the supplies of goods or
services supplied inland shall be included in the tax return for
the taxation period when the supply of goods was provided or
service was supplied and the time limit for the issuing of a tax
invoice has set in.
(5) If a tax invoice is not issued until the time limit laid
down in Section 131, Paragraph two of this Law, the supply of
goods in the territory of the European Union shall be included in
the tax return for the taxation period which follows the taxation
period when the supply of goods in the territory of the European
Union was provided.
(6) If the transactions referred to in Paragraph one of this
Section are made constantly over a continuous time period, the
tax shall be included in the tax return for the taxation period
when a consideration for such transaction was received or when
the time period to which the tax invoice written out applies to
has ended, however, not less than once in six months.
(7) In the case referred to in Section 31, Paragraph three of
this Law tax for the supply of goods provided constantly over a
continuous period of time in the territory of the European Union
shall be included in the tax return for each taxation period
until the time when the transaction is completed.
(8) A registered taxable person which supplies electricity
inland shall include the tax to be paid into the State budget for
the electricity supplied to a consumer who issues a payment
document for the electricity received by himself or herself in
the tax return for the taxation period when the consideration
from the consumer was received.
(9) If supply of goods or services is provided in accordance
with Section 11, Paragraph four of this Law, the recipient of
advance payment shall include the tax in the tax return for the
taxation period in which the decision of the State Revenue
Service to exclude the payer of advance payment from the VAT
group entered into effect.
(10) A registered taxable person shall include the services
the place of supply of which, in conformity with Chapter III of
this Law, is another Member State, third country or third
territory in the tax return for the taxation period in which the
service was supplied to a recipient or consideration for the
service was received before the supply of service.
[15 October 2020]
Section 121. Time when the Tax for
the Acquisition of Goods in the Territory of the European Union
is Included in a Tax Return and Time Limit for the Payment of the
Tax into the State Budget
(1) The tax for the acquisition of goods in the territory of
the European Union shall be included in the tax return for the
taxation period when the goods were acquired in the territory of
the European Union in accordance with Section 31, Paragraph four
of this Law and a tax invoice was issued.
(2) If a tax invoice is not issued until the time limit laid
down in Section 131, Paragraph two of this Law, the tax
calculated for the acquisition of goods in the territory of the
European Union shall be included in the tax return for the next
taxation period after the acquisition of goods in the territory
of the European Union.
(3) If the total value of the acquisition of goods made in the
territory of the European Union by a non-registered taxable
person in the current calendar year has exceeded EUR 10 000, he
or she shall, in accordance with Section 86, Paragraph two of
this Law, calculate and pay the tax into the State budget for the
acquisition of goods in the territory of the European Union
within 23 days from the end of the calendar month when such sum
was exceeded.
[19 September 2013; 23 May 2019]
Section 122. Time when the Tax for
the Received Goods and Services is to be Included in a Tax Return
and Paid into the State Budget if the Supplier of Goods or
Services is not Registered in the State Revenue Service Value
Added Tax Taxable Persons Register
(1) The tax for the received services, the place of supply of
which in accordance with this Law is inland and which have been
received from taxable persons of another Member State or taxable
persons of third countries or third territories who are not
performing economic activity inland, shall be included in the tax
return for the taxation period in which the service was received
or consideration for such service has been made in advance.
(2) In the case referred to in Section 32, Paragraph four of
this Law, the tax for the received services which are provided
permanently over a continuous time period and in respect of which
tax invoices have not been received or payments have not been
made, shall be included in the tax return for the last taxation
period of the calendar year until the time when the transaction
is completed.
(3) If a taxable person of another Member State is not
registered in the State Revenue Service Value Added Tax Taxable
Persons Register in accordance with Section 61, Paragraph one or
four of this Law or a taxable person of a third country or third
territory is not registered in the State Revenue Service Value
Added Tax Taxable Persons Register in accordance with Section 63,
Paragraph one of this Law, the tax for the acquisition of goods
in the territory of the European Union and for the received
services shall be calculated and paid by the recipient of goods
or services, provided that he or she is a registered taxable
person, and included in the tax return for the taxation period
when the goods or service were received.
Section 123. Time when the Tax for
the Importation of Goods is Included in a Tax Return and the Tax
is Paid into the State Budget
(1) The tax for the importation of goods shall be paid into
the State budget when customs duty becomes collectable, unless
otherwise provided for in this Law.
(2) If, in importing goods inland, the customs procedure
"temporary importation" is applied, in accordance with which the
goods to be imported are partially exempted from the payment of
the import duty, the tax shall be paid into the State budget for
each month or part of the month in the amount of three per cent
of the tax amount which would have been payable for the said
goods if they had been released into free circulation on the day
they were transferred for the customs procedure "temporary
importation" when the customs duty becomes collectible.
(3) The tax calculated for the importation of goods to which a
special tax arrangement is applied in transactions of importation
of goods shall be paid into the State budget, including the tax
in the tax return for the taxation period in which the goods were
released for free circulation.
(4) If at the time of importation of goods the actual value of
the services referred to in Section 36, Paragraph one of this Law
is not known or after receipt of a tax invoice from a supplier of
services it differs from the service value included in a customs
declaration, a registered taxable person (the recipient of
imported goods) shall include the tax calculated additionally for
the received service (the difference between the service value
indicated in the tax invoice of a service supplier and in the
customs declaration) in the tax return for the taxation period in
which the service and tax invoice referred to in Section 36,
Paragraph one of this Law was received.
(5) If goods are in temporary storage or applied customs
procedure (except the customs procedure "release for free
circulation") in accordance with the laws and regulations in the
field of customs, the tax shall be calculated and paid into the
State budget when the debt of the import duty becomes
collectible.
[6 November 2013; 20 April 2017]
Section 124. Time when the Tax is
Included in a Tax Return in Other Cases
(1) The tax calculated in the case referred to in Section 51,
Paragraph three of this Law shall be included in the tax return
for the taxation period after the period in which the time limit
laid down in Section 45, Paragraphs one and two of this Law has
expired.
(2) The tax calculated for the advance payment in accordance
with Section 51, Paragraph four of this Law shall be included in
the tax return for the taxation period following a six-month
period starting from the day of receipt of the advance
payment.
(3) The tax which in accordance with Section 129, Paragraph
ten of this Law is included in the price of a ticket (token),
monthly ticket and ticket to sports or cultural event shall be
included in the tax return for the taxation period in which the
relevant ticket was sold to a user by the taxable person who
sells the abovementioned tickets on its behalf not using
intermediary services.
(31) The tax to be calculated for a transaction
where a single-purpose voucher is used shall be included in the
tax return for the taxation period in which this voucher is
transferred as the supply of goods or services.
(32) The tax to be calculated for a transaction
where a multi-purpose voucher is used shall be included in the
tax return for the taxation period in which this voucher is
accepted as consideration or partial consideration for the supply
of goods or services.
(4) In accordance with Sections 141, 142 and 143 of this Law,
the tax for the received services shall be included in the tax
return for the taxation period in which the service was received
and tax invoice was received or payment for the service was made
in accordance with the tax invoice before the receipt of the
service.
(5) In accordance with Sections 141, 143, 143.1,
143.2, 143.3, and 143.4 of this
Law, the tax for the received goods shall be included in the tax
return for the taxation period in which the goods were received
and tax invoice was received or payment for the supply of goods
was made in accordance with the tax invoice before the receipt of
the goods.
[30 November 2015; 16 June 2016; 23 November 2016; 27 July
2017; 30 May 2019 / Amendment to Paragraph five regarding
the replacement of the figures and words "142, 143,
143.1, 143.2, 143.3,
143.4, and 143.5" with the figures and
words "143, 143.1, 143.2, 143.3,
and 143.4" shall come into force on 1 January 2020.
See Paragraph 34 of Transitional Provisions]
Chapter
XVI
Tax Invoice and Accounts of Transactions
Section 125. Tax Invoice and Content
Thereof
(1) A tax invoice shall be deemed to be a document in printed
or electronic form in which the following details and information
is indicated, unless otherwise provided for in this Law:
1) the date when the invoice was issued;
2) the sequence number of one or several series of the tax
invoice which provides a unique identification of the tax
invoice;
3) the name of a legal person (for a natural person - given
name, surname) and legal address (for a natural person - declared
place of residence) of the supplier of goods or services;
4) the registration number of the supplier of goods or
services in the State Revenue Service Value Added Tax Taxable
Persons Register;
5) the name of a legal person (for a natural person - given
name, surname) and legal address (for a natural person - declared
place of residence) of the recipient of goods or services;
6) the registration number of the recipient of goods or
services in the State Revenue Service Value Added Tax Taxable
Persons Register or register of taxable persons of another Member
State if the registration number has been assigned to a taxable
person in the State Revenue Service Value Added Tax Taxable
Persons Register or register of taxable persons of another Member
State;
7) the date of the supply of goods or of the supply of the
service if such differs from the date of issuing the invoice, or
the date when a consideration was received in advance if such
date is known and differs from the date of issuing the
invoice;
8) the name, amount and unit of measurement of the goods or
service;
9) the price (value of one unit excluding tax) of the goods or
service;
10) discounts applied if they are not deducted from the value
of one unit;
11) the tax rate applied;
12) the calculated tax amount;
13) the total amount of the transaction excluding tax (amount
to which tax or exemption from tax is applied);
14) if a tax invoice in accordance with Section 130 of this
Law is issued by the recipient of goods or services himself or
herself - the indication "self-billing";
15) if the zero per cent tax rate is applied to the supply of
goods or the supplied service, or exemption from tax is
applicable thereto - a reference to the Section of this Law in
accordance with which the zero per cent tax rate or exemption
from tax is applicable or a reference to the relevant Article of
Council Directive 2006/112/EC of 28 November 2006 on the common
system of value added tax, or another reference indicating the
legal justification for the application of the zero per cent tax
rate or exemption from tax;
16) if the recipient of goods or services is responsible for
payment of the tax - the indication "reverse charge";
17) if new means of transport are supplied - an indication
thereto and information which proves that the supplied goods are
new means of transport in accordance with Section 1, Clause 9 of
this Law;
18) if the special procedures for payment of tax and deduction
of input tax laid down in Section 137 of this Law are applied -
the indication "cash accounting";
19) if the special tax application arrangement laid down in
Section 136 of this Law is applied - the indication "Margin
scheme - Travel agents";
20) if the special tax application arrangement laid down in
Section 138 of this Law is applied - the relevant indication
"Margin scheme - Second-hand goods", "Margin scheme - Works of
art" or "Margin scheme - Collector's items and antiques";
21) if the special provisions provided for in Sections 135,
139, 140.2, 140.4, 144, and 145 of this Law
are applied to the supply of goods or the service supplied - a
reference to the Section of this Law in accordance with which the
tax is applied or a reference to the relevant Article of Council
Directive 2006/112/EC of 28 November 2006 on the common system of
value added tax;
22) if an authorised person is responsible for the payment of
the tax - the registration number of the authorised person in the
State Revenue Service Value Added Tax Taxable Persons Register,
the name of a legal person (for a natural person - given name,
surname) and legal address (for a natural person - declared place
of residence);
23) if a fiscal representative is responsible for the payment
of the tax - the registration number of the fiscal representative
in the State Revenue Service Value Added Tax Taxable Persons
Register or register of taxable persons of another Member State,
the name of a legal person (for a natural person - given name,
surname) and legal address (for a natural person - declared place
of residence).
(2) In transactions with persons from other Member States, a
tax invoice shall be deemed to be a document which is received
from a person of another Member State and which includes the
details and information referred to in Paragraph one of this
Section, however, the registration number of a taxable person of
another Member State is indicated instead of the detail indicated
in Paragraph one, Clause 4 of this Section.
(3) A taxable person has a responsibility to ensure the
authenticity of the origin of a tax invoice (certification of the
identity of the issuer of the tax invoice), constant content and
legibility from the time of issuing the tax invoice throughout
the storage period.
(4) The manner in which the authenticity of the origin of a
tax invoice (certification of the identity of the issuer of the
tax invoice), constant content and legibility are ensured shall
be determined by a taxable person, guaranteeing the traceability
of transactions, when interrelating a tax invoice and the
transaction made.
(5) Any document which amends the initial tax invoice or
especially and clearly indicates thereto shall be regarded as
equivalent to the tax invoice provided if it conforms to the
requirements laid down in Paragraph one of this Section.
(6) A tax invoice which has been issued and received in any
electronic form shall be deemed a tax invoice in electronic
form.
[12 June 2014; 15 October 2020]
Section 126. Simplified Tax
Invoice
(1) A simplified tax invoice shall be a tax invoice in which
the following details and information are indicated:
1) the date when the invoice was issued;
2) the name of a legal person (for a natural person - given
name, surname), legal address (for a natural person - declared
place of residence) of the supplier of goods or services, as well
as the registration number in the State Revenue Service Value
Added Tax Taxable Persons Register;
3) the name of a legal person (for a natural person - given
name, surname), legal address (for a natural person - declared
place of residence) of the recipient of goods or services, and
also the registration number in the State Revenue Service Value
Added Tax Taxable Persons Register or register of taxable persons
of another Member State;
4) the name and quantity of goods or the type and quantity of
service;
5) the price of goods or service (including tax or excluding
tax) and the total amount of the transaction (including tax or
excluding tax);
6) the tax rate and the calculated tax amount.
(2) A registered taxable person has the right to issue a
simplified tax invoice in the following cases:
1) for an inland transaction the value of which excluding tax
is less than EUR 150;
2) in the case referred to in Section 125, Paragraph five of
this Law, indicating the date of issue of the initial tax invoice
and identification number, as well as the particular data to be
amended, in the additional simplified tax invoice.
(3) A cashier's check or another document may also be used as
a simplified tax invoice, where the details and information
referred to in Paragraph one of this Section are not indicated,
if it is accompanied by a source document in which the date and
number of the cashier's check or another document and the
information referred to in Paragraph one of this Section is
indicated, unless it is laid down otherwise in this Section.
(4) A cashier's check or another document which does not
contain the information referred to in Paragraph one, Clause 3 of
this Section may be used as a simplified tax invoice if it has
been issued for a transaction the value of which excluding tax is
less than EUR 30.
[24 January 2013; 19 September 2013; 23 November
2016]
Section 127. Obligation to Issue Tax
Invoice
(1) Unless otherwise provided for in this Law, a registered
taxable person shall issue a tax invoice or ensure that a third
person on its behalf or a recipient of goods or services issues a
tax invoice regarding:
1) any provided supplies of goods and supplied services;
2) advance payment which it has received before the supply of
goods or services, with the exception of advance payment for the
supply of goods in the territory of the European Union;
3) the supply of goods which has been performed in accordance
with Section 13.1, Paragraph one of this Law, except
for the cases when the supplier of goods is using the special tax
arrangement specified in Section 140.3 of this
Law.
(2) A registered taxable person does not have the obligation
to issue a tax invoice regarding the following transactions:
1) the services referred to in Section 52, Paragraph one,
Clauses 20, 21, and 22 of this Law;
2) non-taxable supplies of goods and services supplied, other
than those referred to in Clause 1 of this Paragraph, provided
inland.
(3) A registered taxable person shall issue a tax invoice
regarding the supply of goods or services to non-taxable persons
or non-registered taxable persons in conformity to Section 125,
Paragraph one or Section 126, Paragraph one of this Law upon a
request of such persons.
(4) A non-registered taxable person and a non-taxable person
have an obligation to issue a tax invoice regarding the supply of
a new means of transport to any person of another Member
State.
[15 October 2020]
Section 128. Issuing of a Tax
Invoice Depending on the Place of Transaction
(1) An inland taxable person shall issue a tax invoice in
accordance with the conditions of this Law if the place of supply
of goods or services is inland in conformity to Chapter III of
this Law and unless it is otherwise provided for in this
Section.
(2) A tax invoice shall be issued in accordance with the
conditions of this Law, if the seat of economic activity or fixed
establishment of a supplier of goods or services from where the
supply of goods or service is provided or, if the seat of
economic activity or fixed establishment does not exist - the
declared place of residence, but, in the absence of such - the
place of permanent residence is inland in the following
cases:
1) the supplier of goods or services does not perform economic
activity or his or her fixed establishment does not participate
in the supply of goods or services in the Member State, where the
place of making the transaction is located, and the recipient of
goods or services is responsible for the payment of tax;
2) the place of supply of goods or services is a third country
or third territory.
(3) If a recipient of goods or services issues a tax invoice
by himself or herself for himself or herself in accordance with
Section 130 of this Law, the tax invoice shall be issued in
accordance with the regulations of the Member State where the
place of supply of goods or services is located.
(4) If, in accordance with Section 140.2,
140.3, or 140.4 of this Law, the supplier
of goods or services uses any of the special tax arrangements,
the tax invoice shall be issued according to the provisions of
such Member State of identification which is determined in
accordance with Section 140.2, Paragraph one, Clause
3, Section 140.3, Paragraph one, Clause 3, or Section
140.4, Paragraph one, Clause 4 of this Law.
[30 May 2019; 15 October 2020]
Section 129. Conditions of Issuing a
Tax Invoice
(1) A registered taxable person may issue a summary tax
invoice for several separate supplies of goods or services
supplied within the framework of a calendar month in which the
information referred to in Section 125, Paragraph one or Section
126, Paragraph one of this Law is indicated.
(2) In the case referred to in Section 128, Paragraph two,
Clause 1 of this Law, the information referred to in Section 125,
Paragraph one, Clauses 9, 10, 11, and 12 of this Law need not be
indicated.
(3) If any of the special tax application arrangements
referred to in Section 141, 142, 143, 143.1,
143.2, 143.3, or 143.4 of this
Law is applied to the supply of goods or services, the
information referred to in Section 125, Paragraph one, Clauses 11
and 12 of this Law shall not be indicated.
(4) If both transactions taxable by different tax rates and
non-taxable transactions are included in a tax invoice, the
values of such transactions shall be indicated separately.
(5) The sums indicated in a tax invoice may be expressed in
any currency provided that the tax amount to be paid or adjusted
is expressed in euros in conformity with the relevant currency
exchange rate to be used in accounting, which was in effect at
the beginning of the transaction day or at the beginning of the
day when the advance payment was received accordingly.
(6) If a tax invoice is cancelled, a registered taxable person
shall keep the cancelled tax invoice in the accounting thereof to
justify the derogation from the sequence numbers of the issued
tax invoices.
(7) If the property of a registered taxable person is sold by
a liquidator, administrator or bailiff, he or she shall issue a
tax invoice on behalf of the registered taxable person.
(8) If a natural person - registered taxable person - is
deceased, but an heir or trustee assigned by the court continues
the economic activity instead of the estate leaver, he or she
shall issue a tax invoice on his or her behalf and use the estate
leaver's registration number of the registered taxable person
until the time when the right of inheritance of lawful heirs
enters into effect.
(9) If a transaction is made on an ongoing basis over a
continuous period of time in accordance with Section 31,
Paragraph two or three, Section 32, Paragraph three or four of
this Law, a tax invoice shall be issued for a certain period of
time which is not longer than one month, six months or one
calendar year respectively.
(10) A registered taxable person who provides supplies of
goods or services for a fixed price [for example, tickets
(tokens), monthly tickets and tickets to sports or cultural
events] shall not issue a separate tax invoice.
(11) The procedures for the issuing of a tax invoice shall be
laid down by the Cabinet.
[19 September 2013; 30 November 2015; 16 June 2016; 23
November 2016; 27 July 2017; 30 May 2019 / Amendment to
Paragraph three regarding the replacement of the figures and
words "143.3, 143.4 or 143.5"
with the figures and words "143.3 or 143.4"
shall come into force on 1 January 2020. See Paragraph 34 of
Transitional Provisions]
Section 130. Cases when a Purchaser
or Recipient of Service Issues a Tax Invoice by Themselves for
Themselves
A recipient of goods or services is entitled to issue a tax
invoice for himself or herself on behalf and in the interests of
the supplier of goods or services for the goods or services
supplied to him or her by a registered taxable person or a
taxable person of another Member State if there is a prior
agreement between the parties and if the supplier of goods or
services applies the mutual recognition procedure of invoices to
each invoice.
Section 131. Time Limits for Issuing
a Tax Invoice
(1) A registered taxable person shall issue a tax invoice for
a transaction made not later than on the fifteenth date from the
time of transaction or receipt of advance payment, unless it is
laid otherwise in this Section.
(2) A registered taxable person shall issue a tax invoice not
later than on the fifteenth day of the month following the month
when the following transaction has occurred:
1) the supply of goods in the territory of the European
Union;
2) the supply of such service the place of supply of which is
determined in conformity with Section 19, Paragraph one of this
Law and the recipient of service is liable for the payment of
tax, as well as for the advance payments received for the supply
of such service.
(3) The bailiff or administrator of insolvency proceedings
shall issue a tax invoice on behalf of a registered taxable
person regarding the sale of property at an auction within 15
days from the day when the time period for appealing the invoice
drawn up by the bailiff or administrator of insolvency
proceedings has elapsed and such calculation has not been
appealed, or if such calculation has been appealed - from the day
when a court ruling on the drawn-up calculation has entered into
effect.
(4) A registered taxable person may issue a tax invoice
regarding the goods transport service which is directly related
to exportation of goods to third countries or third territories
later than within 15 days after supply of the service, but not
later than within 90 days.
(5) A non-registered taxable person or non-taxable person
shall issue a tax invoice regarding the supply of a new means of
transport to any person of another Member State not later than on
the fifteenth day of the month following the month in which the
transaction occurred.
[6 November 2013]
Section 132. Sending of a Tax
Invoice by Electronic Means
(1) A registered taxable person is entitled to issue (draw up)
and deliver a tax invoice by electronic means only when the a
recipient of such tax invoice recognises such form of the tax
invoice.
(2) The authenticity of the electronic form (certification of
the identity of the issuer of the tax invoice) and constant
content of a tax invoice may be ensured if the tax invoice has a
secure electronic signature within the meaning of the Electronic
Documents Law or if the tax invoice is sent using electronic data
exchange or another form selected by a taxable person itself in
conformity with the provisions of Section 125, Paragraph four of
this Law.
(3) When several tax invoices are sent or made available
together to the same addressee by electronic means, the details
common to the individual invoices may be mentioned only once if,
for each tax invoice, all the information is accessible.
Section 133. Storage of Tax
Invoices
(1) A taxable person shall ensure that the tax invoices which
have been issued by itself or a third person on its behalf, or
the recipient of goods or services, as well as tax invoices that
are received by a taxable person shall be stored.
(2) Storage of the tax invoices received in electronic form
shall be the storage of data using electronic equipment for
processing (including digital compression) and storage, as well
as employing wire, radio, optical or other electromagnetic
means.
(21) A taxable person is entitled to convert into
electronic form a tax invoice issued and received in paper and to
keep it in electronic form in accordance with the requirements of
laws and regulations governing accounting.
(3) A taxable person has an obligation to store all the issued
and received tax invoices inland, except when the tax invoices
are stored by electronic means and full online access to the
relevant data is ensured.
(4) Time limit for the storage of tax invoices shall be five
years from the day of issue of the invoice, unless otherwise
provided for in this Section.
(5) In cases when a taxable person has an obligation to make
adjustment of the input tax in accordance with Section 102 of
this Law, a tax invoice shall be kept until the end of the time
period of adjustment of the input tax, unless it exceeds the time
limit of storage laid down in Paragraph four of this Section.
[28 November 2019]
Section 134. Other Obligations of a
Taxable Person in Respect of Tax Invoices and Accounts of
Transactions
(1) If a taxable person keeps tax invoices in electronic form,
ensuring online access thereto for the competent authorities,
then in cases when the tax is to be paid in another Member State
the taxable person has a responsibility to ensure the right to
access to such tax invoices, to download and use them for the
control purposes also for the competent authorities of such
another Member State.
(2) A taxable person has an obligation to keep sufficiently
accurate accounts of transactions so that the State Revenue
Service could inspect the tax application.
(3) A taxable person has an obligation:
1) to maintain a register of goods that it has dispatched or
transported or that have been dispatched or transported on its
behalf from inland to a destination in the territory of another
Member State for the purpose of making such transactions that
include assessment, treatment, processing, repair of goods or
temporary use thereof in conformity with Section 8, Paragraph
two, Clauses 7, 8, and 9 of this Law;
2) to keep accurate accounts according to which the goods that
have been dispatched to it from another Member State by a
registered taxable person or another person on its behalf and
which are used for the supply of such services that include
assessment or treatment of such goods can be identified;
3) according to that laid down in Council Implementing
Regulation (EU) No 282/2011 of 15 March 2011 laying down
implementing measures for Directive 2006/112/EC on the common
system of value added tax, to maintain the register of those
goods which it transfers when providing the supply of goods to a
warehouse in another Member State, thus ensuring the possibility
for the tax administration to ascertain that the supply of goods
to a warehouse in another Member State is provided correctly;
4) according to that laid down in Council Implementing
Regulation (EU) No 282/2011 of 15 March 2011 laying down
implementing measures for Directive 2006/112/EC on the common
system of value added tax, to maintain the register of those
goods which have been received at a warehouse when making a
transaction of supply of goods from another Member State to an
inland warehouse.
(4) A registered taxable person who is a personal income
taxpayer and keeps its accounting in a single entry system shall
keep the accounts of the tax in accordance with the procedures
stipulated by the Cabinet. The Cabinet shall lay down the
procedures for keeping the accounts of the tax, and a sample of
tax record register and the procedures for filling-in
thereof.
(5) A fiscal representative, when representing a registered
taxable person of another Member State or a taxable person of a
third country or third territory, shall ensure detailed accounts
of goods to be dispatched or received in order for the tax
administration to be able to track down each movement of
goods.
(6) A taxable person who, using an electronic interface, for
example, a sales point, platform, or portal, promotes the supply
of goods or services in the European Union to a non-taxable
person has the following obligations according to the provisions
for the determination of the place of transaction:
1) to perform detailed accounts according to which it is
possible to identify the supplies of goods in relation to which
it is regarded that the taxable person has received and supplied
the goods itself in accordance with Section 6, Paragraph five or
six of this Law, or the supply of services, if the taxable person
participates in the supply of such electronically supplied
services regarding which it is regarded that it acts on its own
behalf in accordance with Council Implementing Regulation (EU) No
282/2011 of 15 March 2011 laying down implementing measures for
Directive 2006/112/EC on the common system of value added
tax;
2) to maintain a register on the supplies of goods and the
supplied services which are not referred to in Clause 1 of this
Paragraph in accordance with Council Implementing Regulation (EU)
No 282/2011 of 15 March 2011 laying down implementing measures
for Directive 2006/112/EC on the common system of value added
tax;
3) to store the accounts regarding the abovementioned
transactions for 10 years after 31 December of such year when the
transaction was performed.
[28 November 2019; 15 October 2020]
Chapter
XVII
Special Tax Application Arrangements and Procedures
Section 135. Special Tax Application
Arrangement for a Farmer
(1) Within the meaning of this Section:
1) a farmer shall be a natural or legal person who is engaged
in the production of agricultural crops, stock farming and
fishery products (hereinafter - the agricultural products), who
is not a registered taxable person and to whom the tax
application arrangement laid down in this Section applies;
2) a processor of agricultural products shall be a registered
taxable person who carries out or ensures pre-treatment of
agricultural products or processes procured unprocessed
agricultural products.
(2) When handing over unprocessed self-produced agricultural
products to the processor of agricultural produce, a farmer shall
receive a compensation from it.
(3) The compensation referred to in Paragraph two of this
Section for the tax which the farmer has paid upon acquiring
goods and receiving services to ensure the production of
agricultural products intended for handing over to the processor
of agricultural products shall be 14 per cent from the value of
the supplied agricultural products.
(4) Compensation may also be disbursed by the following
registered taxable persons if they conform to the conditions laid
down for the processor of agricultural products in Paragraphs
seven, nine and ten of this Section:
1) conforming agricultural services co-operative
societies;
2) the Rural Support Service that purchases unprocessed
self-produced agricultural produce from the farmer for the
creation of intervention reserves.
(5) An agricultural services co-operative society shall also
receive a compensation if it:
1) is not a registered taxable person;
2) the received compensation is disbursed in full to a
farmer.
(6) For a farmer to be able to receive a compensation, he or
she shall submit a certification to the specific processor of
agricultural products that the farmer is a non-registered taxable
person and that he or she has the right to receive a compensation
in accordance with this Section.
(7) [23 November 2016]
(8) [23 November 2016]
(9) In its tax return for the taxation period, the processor
of agricultural products shall reduce the amount of tax to be
paid into the State budget by the amount of the compensation
disbursed to the farmer.
(10) If the processor of agricultural products purchases
agricultural products from a farmer for the value (excluding
compensation) that is higher or lower than the value of supply
for which analogue products are purchased from a registered
taxable person, he or she shall forfeit the rights referred to in
Paragraph nine of this Section.
(11) Conditions of this Section shall not be applicable
if:
1) the purchased or processed products, or plant products
gathered in the wild, or mushrooms, or caught fishery products or
hunted products of animal origin which have not been acquired as
a result of the production of agricultural products, are handed
over to the processor of agricultural products;
2) the processor of agricultural products does not carry out
or does not ensure the processing of the agricultural products
received from a farmer, but uses them for trade.
[23 November 2016]
Section 136. Special Tax Application
Arrangement to Services Supplied by a Tour Operator
(1) Tax shall be applied to the services supplied by a tour
operator if the tour operator acts on its own behalf and in
favour of a person who receives a tourism service (hereinafter in
this Section - the traveller), and makes use of the supply of
goods and services of other persons for ensuring tourism services
provided to the traveller.
(2) All activities performed by a tour operator to ensure the
supply of a tourism service (journey) shall be treated as a
single service supplied by the tour operator to the traveller.
Such service shall be taxable.
(3) The taxable amount of the service provided by a tour
operator shall be the difference between the total amount
(excluding the tax) paid by the recipient of the service (the
traveller) and the actual charges for the supply of goods and
services which are provided to the tour operators by other
persons if such transactions provide direct benefit to the
traveller.
(4) The tax calculated by a tour operator for the services it
has provided itself (including development of a travel package
and publication of advertising brochures) shall be included in
the total value of a travel package and collected from the
traveller. In calculating the amount of the tax payable into the
State budget, the tax estimated for the goods acquired and
services received inland for ensuring the service supplied by the
tour operator itself (including the leasing of premises,
electronic communications services, electricity) shall be
deducted as the input tax.
(5) Tax for other tourism-related services (including services
of accommodation facilities, transportation, public catering
services) which are actually provided inland by other registered
taxable persons shall be included in the total value of the
tourism service and collected from the traveller. The amount of
tax collected for such services shall be fully transferred by the
tour operator to the actual supplier of the services. The tour
operator may not deduct such amount as input tax.
(6) A tour operator shall calculate the value of taxable
tourism service referred to in Paragraph three of this Section
and include it in the tax return for the taxation period in which
the service was supplied to the traveller and invoices were
received from other persons regarding the actual value of the
services supplied, but not later than the next taxation period
after the supply of the service to the traveller.
(7) The value of the tourism service supplied by a tour
operator shall be taxable at the standard tax rate. If the
tourism service is supplied both in and outside the territory of
the European Union, the zero per cent tax rate shall be applied
only to that part of the service which is supplied outside the
territory of the European Union.
(8) The special tax application arrangement laid down in this
Section shall not be applied to services which are provided by a
tourism agent which on behalf of the tour operator under an
authorisation or other contract governed by civil law sells
tourism services prepared by the tour operator to the traveller.
The tax in respect of the intermediary service supplied by the
tourism agent shall be applied in accordance with the general
procedure laid down in this Law.
Section 137. Special Procedures for
the Payment of Tax and Deduction of Input Tax
(1) A registered taxable person who conforms to at least one
of the following criteria has the right to apply the procedures
laid down in this Section for the payment of tax and deduction of
input tax:
1) the total value of taxable transactions in the previous
taxation year has not exceeded EUR 100 000;
2) upon registering in the State Revenue Service Value Added
Tax Taxable Persons Register, it is not planned that the amount
of transactions in the taxation year will exceed EUR 100 000.
(2) The right to apply the procedures laid down in this
Section for the payment of tax and deduction of input tax can be
exercised by a registered taxable person for whom the total value
of taxable transactions in the previous taxation year has reached
EUR 100 000, however, not exceeded EUR 500 000, and who is:
1) a registered taxable person who is operating in the
fisheries sector - in respect of the supplies of fresh, frozen or
chilled fish and crustaceans;
2) the producer of agricultural products or an agricultural
services co-operative society - in respect of the supply of the
following agricultural products:
a) live animals,
b) milk and dairy products,
c) birds' eggs,
d) natural honey,
e) vegetables, roots, tubers,
f) cereals,
g) oil seeds and fruits, different grains, seeds and
fruits.
(21) A registered taxable person for whom the total
value of taxable transactions in the previous taxation year has
reached EUR 100 000, however, not exceeded EUR 2 000 000, and who
supplies services of the administration of a residential house
has the right to apply the procedures laid down in this Section
for the payment of tax and deduction of input tax with regard to
the supply of services of the administration of a residential
house.
(3) The total value of fixed assets and intangible investments
supplied by a taxable person shall not be included in the sum of
the value of transactions referred to in Paragraphs one, two and
2.1 of this Section if the taxable person provides
such supply once within a 12 month period.
(4) The registered taxable persons referred to in Paragraphs
one, two and 2.1 of this Section shall pay the tax
into the State budget for the taxation period during which
payment for the goods supplied or services supplied was received,
unless otherwise provided for in this Section.
(5) The registered taxable persons referred to in Paragraphs
one, two and 2.1 of this Section have the right to
deduct the input tax for the goods and services received for the
provision of such transactions in the taxation period during
which they have paid the tax amounts indicated in tax invoices
received from other registered taxable person.
(6) The registered taxable persons referred to in Paragraphs
two and 2.1 of this Section shall pay the tax into the
State budget for the taxation period during which payment for the
goods supplied or services supplied was received, but not later
than six months following the issue of the tax invoice.
(7) A registered taxable person who wishes to apply the
procedures for the payment of tax and deduction of input tax laid
down in this Section shall inform the State Revenue Service
thereof until 31 January of the taxation year or upon submitting
the submission for registration in the State Revenue Service
Value Added Tax Taxable Persons Register.
(8) A registered taxable person who applies the procedures for
the payment of tax and deduction of input tax laid down in this
Section does not have the right to change these procedures until
the subsequent taxation year.
(9) A registered taxable person who has applied the procedures
for the payment of tax and deduction of input tax laid down in
this Section in the taxation year, but does not wish to apply
them in the post-taxation year, shall inform the State Revenue
Service thereof until 31 December of the taxation year.
(10) A registered taxable person who has applied the
procedures for the payment of tax and deduction of input tax laid
down in this Section in the taxation year, but does not wish to
apply it in the post-taxation year, shall declare the tax for
transactions made in the taxation year and pay it into the State
budget not later than when submitting the tax return for June or
the second quarter of the post-taxation year, concurrently
indicating in such tax return the input tax to be deducted for
the tax amounts indicated in tax invoices received in the
taxation year.
(11) A person who has been excluded from the State Revenue
Service Value Added Tax Taxable Persons Register and until
exclusion has applied the special procedures for the payment of
tax and deduction of input tax laid down in this Section shall
include the transactions made in the previous taxation periods in
a tax return which were not included in tax returns, using the
procedures laid down in this Section, and pay the tax into the
State budget within 23 days after exclusion thereof from the
State Revenue Service Value Added Tax Taxable Persons Register.
Concurrently, the input tax to be deducted for the tax amounts
not paid and included in tax invoices received in previous
taxation periods shall be included in such tax return.
(12) The special procedures for the payment of tax and
deduction of input tax laid down in this Section shall not be
applicable to the services supplied and supply of goods, the
place of supply of which is not inland, as well as to the supply
of goods in the territory of the European Union and exportation
of goods.
[19 September 2013; 30 November 2015; 23 November 2016; 23
May 2019]
Section 138. Special Tax Application
Arrangement in Transactions with Second-hand Goods, Works of Art,
Collectors' Items and Antiques
(1) A dealer of second-hand goods, works of art, collectors'
items and antiques (hereinafter - the dealer) is entitled to
choose to apply the special tax application arrangement laid down
in this Section or the general tax application procedure in
transactions with the goods laid down by the Cabinet which are
deemed to be second-hand goods, works of art, collectors' items
and antiques.
(2) The dealer shall be a registered taxable person the
economic activity of which is the acquisition or importation of
second-hand goods, works of art, collectors' items and antiques
in order for them to be sold, regardless of whether that person
is acting in his or her interests or in the interests of another
person according to a contract under which negotiation
consideration is payable on purchase or sale.
(3) Within the meaning of this Section, also a pledgee (except
for credit institutions) which is operating in accordance with
the norms of the Civil Law and sells the pledged property for the
satisfaction of his or her claim shall be deemed the dealer.
(4) A seller of second-hand goods, works of art, collectors'
items and antiques (hereinafter - the seller) shall be a person
who supplies or transfers second-hand goods, works of art,
collectors' items and antiques to the dealer for sale and who
conforms to at least one of the following conditions:
1) is not a taxable person;
2) makes only such transactions which are not taxable in
accordance with Section 52, Paragraph one of this Law or the
relevant legal acts of another Member State;
3) supplies or transfers used fixed assets for sale to the
dealer and is a non-registered taxable person or also a
non-registered taxable person of another Member State in
accordance with legal acts of another Member State;
4) is the dealer who applies the special tax application
arrangement to the supply of goods in accordance with this
Section or the relevant legal acts of another Member State.
(5) The requirements laid down in this Section for the seller
shall be applicable also to a pledger, if the pledger sells
pledged property for the satisfaction of his or her claim and
conforms to at least one of the conditions of Paragraph four,
Clause 1, 2, or 3 of this Section.
(6) A purchaser of second-hand goods, works of art,
collectors' items and antiques (hereinafter - the purchaser) is a
person to whom goods are supplied by the dealer.
(7) The dealer has the right to choose to apply the special
tax application arrangement laid down in this Section to the
supply of such goods by submitting a written submission to the
State Revenue Service not later than a month before the supply of
goods:
1) the supply of such works of art, collectors' items or
antiques which have been released for free circulation by the
dealer himself;
2) the supply of such works of art which have been supplied to
the dealer by the creator of the works of art or the successor in
title.
(8) The dealer is entitled to commence the special tax
application arrangement laid down in this Section for the supply
of goods referred to in Paragraph seven of this Section or change
to the general tax application procedure starting form the first
day of a new taxation period, indicating the specific date in the
submission addressed to the State Revenue Service.
(9) The dealer is entitled to change the special tax
application arrangement laid down in this Section for the supply
of goods referred to in Paragraph seven of this Section to the
general tax application procedure not earlier than after 24
months.
(10) When applying the special tax application arrangement
laid down in this Section, the difference between the sales value
(amount of money) which a dealer has received for the second-hand
goods, works of art, collectors' items or antiques supplied to a
purchase, and the procurement value shall be taxed, reducing such
difference for the calculated tax value.
(11) When applying the special tax application arrangement
laid down in this Section, if the pledged property is sold, the
negotiation consideration laid down in the loan agreement that is
reduced for the calculated tax value shall be taxed. If the
negotiation consideration is not laid down in the loan agreement
or the laid down amount thereof is less than 10 per cent of the
sales value referred to in Paragraph ten of this Section, the
difference between the sales value and the amount of loan issued
by a pledger shall be taxed, reducing such difference for the
calculated tax value.
(12) The sales value referred to in Paragraph ten of this
Section shall be the whole consideration that is or will be
received by the dealer for the supply of goods from the purchaser
or a third person, including the subsidies, taxes, duties and
other payments directly related to the transaction, as well as
supplementary payments (for example, the negotiation
consideration, costs for wrapping, transport and insurance).
(13) Within the meaning of this Section, the sales value shall
also be the amount of money which the pledgee has received from
the purchaser for the pledged property sold.
(14) The procurement value referred to in Paragraph ten of
this Section shall be the whole consideration which has been or
will be paid by the dealer to the seller or to the creator of the
works of art or successor in title for the supply of goods,
including the subsidies, taxes, duties and other payments
directly related to the transaction, as well as supplementary
payments (for example, negotiation consideration, costs for
wrapping, transport and insurance).
(15) The procurement value for the works of art, collectors'
items or antiques which the dealer has imported and which are
referred to in Paragraph ten of this Section shall be the taxable
value of goods in transaction of importation laid down in Section
36, Paragraph one of this Law to which the tax due or paid for
the importation of such goods is added.
(16) If the value of the difference referred to in Paragraph
ten or eleven of this Section is negative, the tax shall not be
calculated from it.
(17) If goods are not sold, but returned to the seller or
creator of the work of art, or to the successor in title, the tax
shall be imposed on the whole consideration received by the
dealer from the seller or the creator, or the successor in title
(including payment for the service, repair or restoration,
transportation).
(18) The dealer shall not indicate the tax value in a tax
invoice issued to the purchaser for the taxable supplies of goods
in accordance with the special tax application arrangement.
(19) If the special tax application arrangement laid down in
this Section is applied to the supply of goods, the purchaser
shall not deduct the tax for the acquired goods as input tax.
(20) If the special tax application arrangement laid down in
this Section is applied to the supply of goods referred to in
Paragraph seven of this Section, the dealer shall not deduct the
tax paid or due for such supply of goods as input tax.
(21) If the special tax application arrangement laid down in
this Section is applied to a transaction and the value of input
tax is larger than the calculated tax value, the dealer has the
right to deduct the part of input tax of the tax amount to be
paid into the State budget which does not exceed the calculated
tax value.
(22) The special tax application arrangement shall not be
applied to supplies of such means of transport which are deemed
new means of transport in conformity with Section 1, Clause 9 of
this Law.
(23) The Cabinet shall determine:
1) goods that are deemed to be second-hand goods, as well as
works of art, collectors' items and antiques in conformity with
the Combined Nomenclature codes laid down in Annex 1 to Council
Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and
statistical nomenclature and on the Common Customs Tariff and
amendments thereto;
2) the procedures for the accounts of second-hand goods, works
of art, collectors' items and antiques and the documents
necessary for the provision of accounts and content thereof.
Section 139. Special Tax Application
Arrangement in Transactions with Investment Gold
(1) Within the meaning of this Law investment gold shall
mean:
1) gold, in the form of a bar or a wafer of weights accepted
by the bullion markets, of a purity equal to or greater than 995
thousandths, whether or not represented by securities;
2) gold coins of a purity equal to or greater than 900
thousandths and minted after 1800, which are or have been legal
tender in the country of origin, and are normally sold at a price
which does not exceed the open market value of the gold contained
in the coins by more than 80 per cent.
(2) The following shall not be taxable:
1) the supply of investment gold inland and in the territory
of the European Union;
2) the acquisition of investment gold in the territory of the
European Union;
3) the importation of investment gold;
4) the intermediary services supplied in transactions with
investment gold.
(3) In accordance with Paragraph four of this Section, a
registered taxable person has the right to apply the tax for the
supply of investment gold and intermediary service if it has
informed the State Revenue Service of such a choice before making
the transaction.
(4) A registered taxable person who normally supplies gold for
industrial purposes may choose whether to apply the tax to the
supply of investment gold referred to in Paragraph one, Clause 1
of this Section.
(5) A registered taxable person who produces investment gold
or transforms any gold into investment gold is entitled to choose
whether to apply the tax to the supply of investment gold
referred to in Paragraph one of this Section.
(6) A registered taxable person who supplies intermediary
services, participating in the supplies of investment gold
referred to Paragraphs four and five of this Section is entitled
to choose whether to apply the tax to the intermediary
service.
(7) A registered taxable person who provides the supply of
investment gold released from taxes has the right, in applying
the procedures laid down in Section 92 of this Law, in the tax
return to deduct the tax which is calculated for the following
from the amount of tax to be paid into the State budget as input
tax:
1) the acquisition of investment gold from other taxable
persons or registered taxable persons of another Member State who
have decided to apply the tax for the supply of investment
gold;
2) the acquisition of gold from other registered taxable
persons or registered taxable persons of another Member State or
importation of gold if such gold is to be transformed into
investment gold by the taxable person or an intermediary agent in
the name of a taxable person;
3) services received to change the form, weight or purity of
the gold or investment gold.
(8) A registered taxable person who produces investment gold
or transforms gold into investment gold, regardless of whether
such taxable person in accordance with Paragraph five or six of
this Section has decided to apply the tax to the supply of
investment gold or not, has the right in applying the procedures
laid down in Section 92 of this Law, in the tax return to deduct
the tax from the amount of tax to be paid into the State budget
as input tax for goods which have been acquired from other
registered taxable persons or registered taxable persons of
another Member State, or imported goods and received services
which are related to the production of investment gold.
(9) For a registered taxable person who makes transactions
with investment gold, the documents which are related to such
transactions shall be preserved for five years after the end of
the calendar year in which the transaction ended.
Section 140. Special Tax Calculation
and Payment Arrangement for Electronically Supplied Services
Provided by a Taxable Person of a Third Country or Third
Territory in the Territory of the European Union
[12 June 2014 / See Paragraph 18 of Transitional
Provisions]
Section 140.1 Special Tax
Calculation and Payment Arrangements for Supplies of Electronic
Communications, Broadcasting and Electronically Supplied Services
to a Non-taxable Person
[15 October 2020]
Section 140.2 Non-Union
Scheme or Special Tax Arrangements for Services Supplied by
Taxable Persons who do not Perform Economic Activity in the
European Union
(1) Within the meaning of this Section:
1) the non-Union scheme is the scheme referred to in Article
57a(1) of Council Implementing Regulation (EU) No 282/2011 of 15
March 2011 laying down implementing measures for Directive
2006/112/EC on the common system of value added tax (recast) (in
the wording of Council Implementing Regulation (EU) 2019/2026 of
21 November 2019 amending Implementing Regulation (EU) No
282/2011 as regards supplies of goods or services facilitated by
electronic interfaces and the special schemes for taxable persons
supplying services to non-taxable persons, making distance sales
of goods and certain domestic supplies of goods);
2) taxable person who does not perform economic activity in
the European Union is a taxable person who does not have a seat
of economic activity and a fixed establishment in the territory
of the European Union;
3) Member State of identification is the Member State in which
the relevant taxable person has chosen to register for the use of
the non-Union scheme;
4) Member State of consumption is the Member State in relation
to which it is regarded that the supply of services takes place
therein according to the provisions for the determination of the
place of supply of service.
(2) It shall be permitted to apply the non-Union scheme to all
the services supplied in the European Union which are supplied by
a taxable person who does not perform economic activity in the
European Union and supplies services to a non-taxable person who
is registered in the Member State of consumption or who has the
declared place of residence or the place of permanent residence
in this Member State.
(3) If the taxable person referred to in Paragraph two of this
Section chooses inland as the Member State of identification for
the application of the non-Union scheme, he or she shall, using
the Electronic Declaration System of the State Revenue Service,
submit a submission to the State Revenue Service, thus notifying
when the application of such scheme is commenced.
(4) The taxable person referred to in Paragraph two of this
Section shall indicate the following identification data in the
submission for registration in the State Revenue Service Value
Added Tax Taxable Persons Register for the application of the
non-Union scheme:
1) a natural person - the given name and surname; a legal
person - the name;
2) address;
3) electronic address and website;
4) registration number of the taxable person of the relevant
state, if any;
5) certification that the person does not have a seat of
economic activity and a fixed establishment in the territory of
the European Union.
(5) The State Revenue Service shall, within five working days
after receipt of the registration submission of the taxable
person referred to in Paragraph two of this Section, take the
decision on registration in the register of the non-Union scheme
and, using the Electronic Declaration System of the State Revenue
Service, notify it not later than on the following day after
taking of the decision.
(6) The State Revenue Service shall assign a registration
number for the application of the non-Union scheme in the State
Revenue Service Value Added Tax Taxable Persons Register or - in
relation to a registered taxable person - shall use the
registration number in the State Revenue Service Value Added Tax
Taxable Persons Register already assigned thereto for activities
in relation to which such taxable person is registered inland for
the purpose of tax application.
(7) The State Revenue Service shall exclude a taxable person
from the register of non-Union scheme if at least one of the
following circumstances sets in:
1) the taxable person notifies through the Electronic
Declaration System of the State Revenue Service that he or she no
longer supplies the services to which the non-Union scheme
applies;
2) there are other signs allowing to assume that the activity
of the taxable person which is taxable and to which the non-Union
scheme applies has ceased;
3) the taxable person no longer conforms to the conditions the
implementation of which is required for the application of the
non-Union scheme;
4) the taxable person constantly does not conform to the
provisions in relation to the non-Union scheme.
(8) The taxable person referred to in Paragraph two of this
Section shall, until the end of the month following the taxation
period, submit a tax return for each quarter for transactions to
which the non-Union scheme applies to the State Revenue Service
through the Electronic Declaration System of the State Revenue
Service. The taxable person shall submit the abovementioned tax
return also if he or she has not performed the relevant
transactions.
(9) The taxable person referred to in Paragraph two of this
Section shall pay the tax which has been calculated for the
taxation period into the State budget until the end of the month
following the taxation period regarding which the tax return has
been submitted.
(10) The taxable person referred to in Paragraph two of this
Section shall be refunded the tax amount for the goods purchased
and services received inland for ensuring its services supplied
within the scope of the non-Union scheme from the State budget,
applying the procedures laid down in Section 112 of this Law.
(11) If the taxable person referred to in Paragraph two of
this Section also performs activities inland to which the
non-Union scheme does not apply and in relation to which it must
be registered in the State Revenue Service Value Added Tax
Taxable Persons Register for the purpose of tax application, it
shall deduct the tax amount for the goods and services for
ensuring its services in the tax return to be submitted in
accordance with Section 117 of this Law.
(12) The taxable person referred to in Paragraph two of this
Section has the obligation:
1) through the Electronic Declaration System of the State
Revenue Service, to notify of changes in its activity due to
which the relevant conditions are no longer implemented for it to
be able to apply the non-Union scheme, and also to notify the
fact that he or she terminates the use of the abovementioned
scheme, and to notify of other changes in the registration
data;
2) to ensure detailed accounts of transactions to which the
non-Union scheme applies;
3) in order to prove the correctness of tax calculations, to
keep the data of accounts for 10 years after 31 December of the
year in which the services were supplied;
4) through the Electronic Declaration System of the State
Revenue Service, to submit the data of accounts regarding each
individual type of the service supplied upon request of the State
Revenue Service.
(13) The Cabinet shall determine the procedures by which the
taxable person referred to in Paragraph one, Clause 2 of this
Section prepares and completes the tax return for the
transactions performed in the taxation period to which the
non-Union scheme applies and shall make corrections thereto, and
also shall determine the information to be indicated in the tax
return.
[15 October 2020]
Section 140.3 Union
Scheme or Special Tax Arrangements for Distance Selling of Goods
in the European Union, Supply of Goods in a Member State which
have been Performed with the Assistance of Electronic Interface
Promoting Such Supplies, and of Services Supplied by Taxable
Persons who Perform Economic Activity in the European Union, but
not in the Member State of Consumption
(1) Within the meaning of this Section:
1) the Union scheme is the scheme referred to in Article
57a(2) of Council Implementing Regulation (EU) No 282/2011 of 15
March 2011 laying down implementing measures for Directive
2006/112/EC on the common system of value added tax (recast) (in
the wording of Council Implementing Regulation (EU) 2019/2026 of
21 November 2019 amending Implementing Regulation (EU) No
282/2011 as regards supplies of goods or services facilitated by
electronic interfaces and the special schemes for taxable persons
supplying services to non-taxable persons, making distance sales
of goods and certain domestic supplies of goods);
2) taxable person who does not perform economic activity in
the Member State of consumption is a taxable person who has a
place of establishment of a business or a fixed establishment in
the European Union, but does not have the seat of economic
activity and a fixed establishment in the territory of the Member
State of consumption;
3) Member State of identification is one of the following
Member States:
a) a Member State in which the taxable person has the seat of
economic activity;
b) a Member State in which the taxable person has a fixed
establishment - if the seat of economic activity of the taxable
person is outside the European Union;
c) a Member State in which a fixed establishment of the
taxable person is located and which it has indicated as the
Member State in which it applies the Union scheme - if the
taxable person does not perform economic activity in the European
Union, but it has several fixed establishments in the European
Union. The choice made by the taxable person in relation to the
Member State of identification is binding to such taxable person
in the relevant calendar year and in at least two following
calendar years;
d) a Member State in which dispatch or transport of goods
starts - if the taxable person does not have the seat of economic
activity and a fixed establishment in the European Union. The
choice made by the taxable person in relation to the Member State
of identification is binding to such taxable person in the
relevant calendar year and in at least two following calendar
years;
e) a Member State which has been indicated by the taxable
person as the Member State in which it applies the Union scheme -
if there is more than one Member State in which dispatch or
transport of goods starts. The choice made by the taxable person
in relation to the Member State of identification is binding to
such taxable person in the relevant calendar year and in at least
two following calendar years;
4) Member State of consumption is one of the following Member
States:
a) a Member State in relation to which it is regarded that the
supply of services takes place therein according to the
provisions for the determination of the place of supply of
service;
b) a Member State in which dispatch or transport of goods to
the recipient of goods ends - if distance selling of goods in the
territory of the European Union takes place;
c) a Member State in which dispatch or transport of goods
starts and ends - if the supply of goods is performed by the
taxable person referred to in Section 6, Paragraph six of this
Law.
(2) It shall be permitted to apply the Union scheme to all
goods supplied in the European Union and all services supplied in
the European Union which are supplied by the following taxable
persons:
1) a taxable person who performs distance selling of goods in
the territory of the European Union;
2) a taxable person who promotes the supply of goods within
the meaning of Section 6, Paragraph six of this Law if dispatch
or transport of goods starts and ends in one Member State;
3) a taxable person who does not perform economic activity in
the Member State of consumption and supplies services to a
non-taxable person.
(3) If the taxable person referred to in Paragraph two of this
Section chooses inland as the Member State of identification for
the application of the Union scheme, he or she shall, using the
Electronic Declaration System of the State Revenue Service,
submit a submission to the State Revenue Service, thus notifying
when the application of such scheme is commenced.
(4) The taxable person referred to in Paragraph two of this
Section shall indicate the following identification data in the
submission for registration in the State Revenue Service Value
Added Tax Taxable Persons Register for the application of the
Union scheme:
1) a natural person - the given name and surname; a legal
person - the name;
2) address;
3) electronic address and website;
4) registration number of the taxable person of the relevant
state, if any.
(5) The State Revenue Service shall, within five working days
after receipt of the registration submission of the taxable
person referred to in Paragraph two of this Section, take the
decision on registration in the register of the Union scheme and,
using the Electronic Declaration System of the State Revenue
Service, notify it not later than on the following day after
taking of the decision.
(6) The State Revenue Service shall assign a registration
number for the application of the Union scheme in the State
Revenue Service Value Added Tax Taxable Persons Register or - in
relation to a registered taxable person - shall use the
registration number in the State Revenue Service Value Added Tax
Taxable Persons Register already assigned thereto for activities
in relation to which such taxable person is registered inland for
the purpose of tax application.
(7) The State Revenue Service shall exclude a taxable person
from the register of Union scheme if at least one of the
following circumstances sets in:
1) the taxable person notifies through the Electronic
Declaration System of the State Revenue Service that he or she no
longer supplies the goods and services to which the Union scheme
applies;
2) there are other signs allowing to assume that the activity
of the taxable person which is taxable and to which the Union
scheme applies has ceased;
3) the taxable person no longer conforms to the conditions the
implementation of which is required for the application of the
Union scheme;
4) the taxable person constantly does not conform to the
provisions in relation to the Union scheme.
(8) The taxable person referred to in Paragraph two of this
Section shall, until the end of the month following the taxation
period, submit a tax return for each quarter for transactions to
which the Union scheme applies to the State Revenue Service
through the Electronic Declaration System of the State Revenue
Service. The taxable person shall submit the abovementioned tax
return also if he or she has not performed the relevant
transactions.
(9) The taxable person referred to in Paragraph two of this
Section shall pay the tax which has been calculated for the
taxation period into the State budget until the end of the month
following the taxation period regarding which the tax return has
been submitted.
(10) The taxable person referred to in Paragraph two of this
Section shall be refunded the tax amount for the goods purchased
and services received inland for ensuring the transactions to be
performed within the scope of the Union scheme from the State
budget, applying the procedures laid down in Section 113 of this
Law.
(11) If the taxable person referred to in Paragraph two of
this Section also performs activities inland to which the Union
scheme does not apply and in relation to which it must be
registered in the State Revenue Service Value Added Tax Taxable
Persons Register for the purpose of tax application, it shall
deduct the tax amount for the goods and services for ensuring its
transactions in the tax return to be submitted in accordance with
Section 117 of this Law.
(12) The taxable person referred to in Paragraph two of this
Section has the obligation:
1) through the Electronic Declaration System of the State
Revenue Service, to notify of changes in its activity due to
which the relevant conditions are no longer implemented for it to
be able to apply the Union scheme, and also to notify the fact
that he or she terminates the use of the abovementioned scheme,
and to notify of other changes in the registration data;
2) to ensure detailed accounts of transactions to which the
Union scheme applies;
3) in order to prove the correctness of tax calculations, to
keep the data of accounts for 10 years after 31 December of the
year in which the transactions were performed;
4) through the Electronic Declaration System of the State
Revenue Service, to submit the accounts regarding each individual
type of transactions upon request of the State Revenue
Service.
(13) The Cabinet shall determine the procedures by which the
taxable person referred to in Paragraph one, Clause 2 of this
Section prepares and completes the tax return for the
transactions performed in the taxation period to which the Union
scheme applies and shall make corrections thereto, and also shall
determine the information to be indicated in the tax return.
[15 October 2020]
Section 140.4 Import
Scheme or Special Tax Arrangements for Distance Selling of Goods
Imported from the Third Countries or Third Territories
(1) Within the meaning of this Section:
1) import scheme is the scheme referred to in Article 57a(3)
of Council Implementing Regulation (EU) No 282/2011 of 15 March
2011 laying down implementing measures for Directive 2006/112/EC
on the common system of value added tax (recast) (in the wording
of Council Implementing Regulation (EU) 2019/2026 of 21 November
2019 amending Implementing Regulation (EU) No 282/2011 as regards
supplies of goods or services facilitated by electronic
interfaces and the special schemes for taxable persons supplying
services to non-taxable persons, making distance sales of goods
and certain domestic supplies of goods);
2) taxable person who does not perform economic activity in
the European Union is a taxable person who does not have a seat
of economic activity and a fixed establishment in the territory
of the European Union;
3) intermediary is a taxable person who performs economic
activity in the European Union and who has been appointed by the
taxable person who performs distance selling of goods imported
from the third countries or third territories as the person who
is responsible for the payment of tax and fulfilment of
liabilities for the purpose of import scheme on behalf and in the
interests of the abovementioned taxable person;
4) Member State of identification is one of the following
Member States:
a) a Member State in which the relevant taxable person has
chosen to register for the application of the import scheme - if
the taxable person does not perform economic activity in the
European Union;
b) a Member State in which a fixed establishment of the
taxable person is located and which it has indicated as the
Member State in which it applies the import scheme - if the
taxable person does not perform economic activity in the European
Union, but it has one or several fixed establishments in the
European Union. The choice in relation to the Member State of
identification made by such taxable person who has more than one
fixed establishment in the European Union is binding to such
taxable person in the relevant calendar year and in at least two
following calendar years;
c) a Member State in which the taxable person has the seat of
economic activity - if the taxable person constantly performs
economic activity in this Member State;
d) a Member State in which the intermediary has the seat of
economic activity - if the intermediary constantly performs
economic activity in this Member State;
e) a Member State in which a fixed establishment of the
intermediary is located and which it has indicated as the Member
State in which it applies the import scheme - if the intermediary
does not perform economic activity in the European Union, but it
has one or several fixed establishments in the European Union.
The choice in relation to the Member State of identification made
by such intermediary who has more than one fixed establishment in
the European Union is binding to such intermediary in the
relevant calendar year and in at least two following calendar
years;
5) Member State of consumption is a Member State in which
dispatch or transport of goods to the recipient of goods
ends.
(2) It shall be permitted to apply the import scheme to
distance selling of goods (except for excisable goods) imported
from the third countries or third territories if the true value
of the consignment of such goods does not exceed EUR 150 which
are made by the following taxable persons:
1) a taxable person who performs economic activity in the
European Union and distance selling of goods imported from the
third countries or third territories;
2) a taxable person who performs economic activity in the
European Union and distance selling of goods imported from the
third countries or third territories and who is represented by an
intermediary who performs economic activity in the European
Union;
3) a taxable person who does not perform economic activity in
the European Union, but who performs distance selling of goods
imported from the third countries or third territories and who is
represented by an intermediary who performs economic activity in
the European Union;
4) a taxable person who performs economic activity in a third
country with which the European Union has entered into such
agreement regarding mutual cooperation the scope of operation of
which is similar to Council Directive 2010/24/EU of 16 March 2010
concerning mutual assistance for the recovery of claims relating
to taxes, duties and other measures and Council Regulation (EU)
No 904/2010 of 7 October 2010 on administrative cooperation and
combating fraud in the field of value added tax and which is
accepted in accordance with the examination procedure referred to
in Article 5 of Regulation (EU) No 182/2011 of the European
Parliament and of the Council of 16 February 2011 laying down the
rules and general principles concerning mechanisms for control by
Member States of the Commission's exercise of implementing
powers, and who performs distance selling of goods from the
abovementioned third country.
(3) The taxable person referred to in Paragraph two, Clauses 2
and 3 of this Section may concurrently only have one intermediary
for the application of the import scheme.
(4) If the taxable person referred to in Paragraph two of this
Section or his or her intermediary chooses inland as the Member
State of identification for the application of the import scheme,
the taxable person or his or her intermediary shall, using the
Electronic Declaration System of the State Revenue Service,
submit a submission to the State Revenue Service, thus notifying
when the application of such scheme is commenced.
(5) The taxable person referred to in Paragraph two of this
Section who does not use an intermediary shall indicate the
following identification data in the submission for registration
in the State Revenue Service Value Added Tax Taxable Persons
Register for the application of the import scheme:
1) a natural person - the given name and surname; a legal
person - the name;
2) address;
3) electronic address and website;
4) the identification number of the taxable person or an
equivalent number which allows to identify the taxable person for
the needs of tax application and which has been assigned by the
country in which the taxable person performs economic
activity.
(6) An intermediary, before it starts applying the import
scheme in the interests of the taxable person referred to in
Paragraph two, Clauses 2 and 3 of this Section, shall indicate
the following identification data in the submission for
registration in the State Revenue Service Value Added Tax Taxable
Persons Register for the application of the import scheme:
1) a natural person - the given name and surname; a legal
person - the name;
2) address;
3) electronic address;
4) the identification number of the taxable person or an
equivalent number which allows to identify the taxable person for
the needs of tax application and which has been assigned by the
country in which the taxable person performs economic
activity.
(7) An intermediary shall indicate the following
identification data in the submission for registration in the
State Revenue Service Value Added Tax Taxable Persons Register
for the application of the import scheme regarding each taxable
person who is represented thereby before the relevant taxable
person commences the application of the import scheme:
1) a natural person - the given name and surname; a legal
person - the name;
2) address;
3) electronic address and website;
4) the identification number of the taxable person or an
equivalent number which allows to identify the taxable person for
the needs of tax application and which has been assigned by the
country in which the taxable person performs economic
activity;
5) the individual registration number which has been assigned
in accordance with Paragraph ten of this Section.
(8) The State Revenue Service shall, within five working days
after receipt of the registration submission of the taxable
person referred to in Paragraph two of this Section or his or her
intermediary, take the decision on registration in the register
of the import scheme and, using the Electronic Declaration System
of the State Revenue Service, notify it not later than on the
following day after taking of the decision.
(9) The State Revenue Service shall assign to the taxable
person referred to in Paragraph two of this Section and his or
her intermediary an individual registration number in the State
Revenue Service Value Added Tax Taxable Persons Register which
may be applied only for the purpose of the import scheme.
(10) The State Revenue Service shall assign to an intermediary
a separate individual registration number in the State Revenue
Service Value Added Tax Taxable Persons Register for each taxable
person represented thereby for the application of the import
scheme.
(11) The State Revenue Service shall exclude from the register
of the import scheme:
1) a taxable person who does not use an intermediary if at
least one of the following circumstances sets in:
a) the taxable person, using the Electronic Declaration System
of the State Revenue Service, notifies that it does not perform
distance selling of goods imported from the third countries or
third territories;
b) there are other signs allowing to assume that the activity
of the taxable person which is taxable and to which the import
scheme applies has ceased;
c) the taxable person no longer conforms to the conditions the
implementation of which is required for the application of the
import scheme;
d) the taxable person constantly does not conform to the
provisions in relation to the import scheme;
2) an intermediary if at least one of the following
circumstances sets in:
a) the intermediary has not, for two successive quarters of a
calendar year, operated as an intermediary in the interests of a
taxable person applying the import scheme;
b) the intermediary no longer conforms to the conditions the
implementation of which is required for the application of the
import scheme in the status of an intermediary;
c) the intermediary constantly does not conform to the
provisions in relation to the import scheme;
3) a taxable person who is represented by an intermediary if
at least one of the following circumstances sets in:
a) the intermediary, using the Electronic Declaration System
of the State Revenue Service, notifies that the taxable person
referred to in Paragraph two, Clauses 2 and 3 of this Section no
longer performs distance selling of goods imported from the third
countries or third territories;
b) there are other signs allowing to assume that the activity
of the taxable person which is taxable and to which the import
scheme applies has ceased;
c) the taxable person no longer conforms to the conditions the
implementation of which is required for the application of the
import scheme;
d) the taxable person constantly does not conform to the
provisions in relation to the import scheme;
e) the intermediary, using the Electronic Declaration System
of the State Revenue Service, notifies that it does not represent
this taxable person anymore.
(12) In importing goods for distance selling from the third
countries or third territories, a taxable transaction shall have
occurred and the tax to a transaction of distance selling of
goods imported from the third countries or third territories
shall be imposed at the moment of the supply of goods. The goods
shall be considered supplied at the moment when the payment has
been received.
(13) The taxable person referred to in Paragraph two of this
Section or an intermediary shall, until the end of the month
following the taxation period, submit a tax return for each month
for transactions to which the import scheme applies to the State
Revenue Service through the Electronic Declaration System of the
State Revenue Service. The taxable person shall submit the
abovementioned tax return also if he or she has not performed the
relevant transactions.
(14) If the tax return should be submitted in accordance with
Paragraph thirteen of this Section, additional liabilities or
formalities shall not be imposed at the moment of importation for
the purposes of tax application.
(15) The tax which has been calculated for the taxation period
shall be paid into the State budget until the end of the month
following the taxation period regarding which the tax return has
been submitted.
(16) The taxable person referred to in Paragraph two of this
Section shall be refunded the tax amount for the goods purchased
and services received inland for ensuring the transactions to be
performed within the scope of the import scheme from the State
budget, applying the procedures laid down in Section 112 or 113
of this Law.
(17) If the taxable person referred to in Paragraph two of
this Section performs activities inland to which the import
scheme does not apply and in relation to which it must be
registered in the State Revenue Service Value Added Tax Taxable
Persons Register for the purpose of tax application, it shall
deduct the tax amount for the goods and services for ensuring its
transactions in the tax return to be submitted in accordance with
Section 117 of this Law.
(18) The taxable person referred to in Paragraph two of this
Section and an intermediary have the obligation:
1) through the Electronic Declaration System of the State
Revenue Service, to notify of changes in its activity due to
which the relevant conditions are no longer implemented for it to
be able to apply the import scheme, and also to notify the fact
that he or she terminates the use of the abovementioned scheme,
and to notify of other changes in the registration data;
2) to ensure detailed accounts of transactions to which the
import scheme applies. The intermediary shall keep separate
accounts regarding each taxable person who is represented
thereby;
3) in order to prove the correctness of tax calculations, to
keep the data of accounts for 10 years after 31 December of the
year in which the transactions were performed;
4) through the Electronic Declaration System of the State
Revenue Service, to submit the data of accounts regarding each
individual type of transactions upon request of the State Revenue
Service.
(19) The Cabinet shall determine the procedures by which the
taxable person referred to in Paragraph one, Clause 2 of this
Section and an intermediary prepare and complete the tax return
for the transactions performed in the taxation period to which
the import scheme applies and shall make corrections thereto, and
also shall determine the information to be indicated in the tax
return.
[15 October 2020]
Section 140.5 Import
Scheme for Taxable Persons who Present Goods to the Customs
Authority or Special Tax Arrangements for the Declaration of and
Payment for a Consignment of Goods Imported from the Third
Countries or Third Territories
(1) It shall be permitted to apply the import scheme for the
taxable persons who present goods to the customs authority for
distance selling of goods imported from the third countries or
third territories which is performed by the taxable person
referred to in Article 63d of Council Implementing Regulation
(EU) No 282/2011 of 15 March 2011 laying down implementing
measures for Directive 2006/112/EC on the common system of value
added tax (recast) (in the wording of Council Implementing
Regulation (EU) 2019/2026 of 21 November 2019 amending
Implementing Regulation (EU) No 282/2011 as regards supplies of
goods or services facilitated by electronic interfaces and the
special schemes for taxable persons supplying services to
non-taxable persons, making distance sales of goods and certain
domestic supplies of goods) if the true value of the consignment
of goods (except for excisable goods) does not exceed EUR 150 and
if all of the following conditions are met:
1) the supply of goods is not performed in accordance with the
import scheme specified in Section 140.4 of this
Law;
2) the dispatch or transport of goods ends in the Member State
of importation.
(2) The recipient of the consignment of goods shall be
responsible for the payment of tax to the taxable person referred
to in Paragraph one of this Section.
(3) The taxable person referred to in Paragraph one of this
Section has an obligation to collect the calculated tax from the
recipient of the consignment of goods and to pay the tax into the
State budget.
(4) If the import scheme is applied to taxable persons who
present goods to the customs authority, the standard rate of tax
shall be applied to the consignment of goods.
(5) The tax calculated in Paragraph three of this Section for
the consignment of goods is presented once a month as the sum
total in a notification issued by the customs authority.
(6) The taxable person referred to in Paragraph one of this
Section shall pay the tax which has been calculated according to
the import scheme for taxable persons who present goods to the
customs authority and the payment of which is ensured with the
general guarantee in accordance with the laws and regulations in
the field of customs, into the State budget until the sixteenth
date of the month following the month in which goods have been
declared.
(7) The taxable person referred to in Paragraph one of this
Section has the obligation:
1) to ensure detailed accounts regarding consignment of goods
to which the import scheme applies to taxable persons who present
goods to the customs authority;
2) in order to prove the accuracy of the declared sum of tax,
to store the data of accounts for the time period stipulated by
the Member State of importation. If the Member State of
importation is inland, the data of accounts shall be stored for
five years from the moment of supply of goods;
3) upon request of the competent authority of the Member State
of importation, to submit the data of accounts electronically. If
the Member State of importation is inland, the data of accounts
shall, using the Electronic Declaration System of the State
Revenue Service, be submitted upon request of the State Revenue
Service;
4) upon request of the competent authority of the Member State
of importation, to send information on the sum of tax declared
electronically.
[15 October 2020]
Section 141. Special Tax Application
Arrangement for the Supplies of Timber and Services Related to
Timber
(1) The tax for the supply of timber referred to in Paragraph
three of this Section provided inland shall be paid by the
recipient of timber into the State budget if the supplier of
timber and recipient of timber are registered taxable
persons.
(2) Tax for the services related to the timber referred to in
Paragraph four of this Section that are provided inland shall be
paid into the State budget by the recipient of services if the
supplier of services and recipient of services are registered
taxable persons.
(3) The procedures referred to in Paragraph one of this
Section are applicable to the supply of the following kinds of
timber:
1) cut and trimmed, cross-cut and not cross-cut, barked and
unbarked, lengthways split and unsplit round timber consisting of
one element without artificial joints, the length of which
exceeds one metre, but the thin-end diameter of which is at least
three centimetres;
2) sawn timber of any length, sawn, planed or unplaned,
consisting of one element without artificial joints and which is
thicker than six millimetres;
3) wood in the form of round timber, logs, branches, bundles
of branches or similar;
4) wood chips and shavings, sawdust and wood residues;
5) sawdust and wood residues in the form of agglomerated or
non-agglomerated briquettes, granules or similar intended to be
used as firewood.
(4) The procedures referred to in Paragraph two of this
Section shall be applicable to the following services:
1) services related to the preparation of timber (including
granting of felling rights, cutting of firebreak areas in forest
land and arrangement of sample felling areas, measuring,
evaluation, cutting, trimming and stacking of standing trees and
roundwood);
2) timber treatment and processing services (including sawing,
cutting into length, barking, milling, planing, turning,
grinding, drying, gluing, lacquering and chipping);
3) labelling, rejection of spoilage, sorting, packaging of
timber;
4) services of chemical treatment of timber (including
impregnation of timber);
5) transport, loading, unloading, transhipment and storage of
timber;
6) marketing and intermediary services related to the supply
of timber.
(5) The supplier of timber shall issue a tax invoice to the
recipient of timber in which the value of timber shall be
indicated excluding tax.
(6) The recipient of timber shall pay the value of timber
indicated in the tax invoice to the supplier of timber.
(7) The supplier of services referred to in Paragraph two of
this Section shall issue a tax invoice to the recipient of
services in which the value of the supplied service is indicated
excluding tax.
(8) The recipient of services referred to in Paragraph two of
this Section shall pay the value of the services indicated in the
tax invoice to the supplier of services.
(9) The recipient of timber shall pay for the received goods
and the recipient of services referred to in Paragraph two of
this Section shall pay for the received services using non-cash
payments.
[30 November 2015; 28 November 2019; 24 November
2020]
Section 142. Special Tax Application
Arrangement for Construction Services
(1) Within the meaning of this Section, the construction
services shall be any performance of construction works, as well
as designing of all types included in the contract for
construction services.
(2) The tax for the construction services supplied inland
shall be paid into the State budget by the recipient of
construction services if the supplier of construction services
and recipient of construction services are registered taxable
persons.
(3) The procedures laid down in Paragraph two of this Section
shall also be applied by a State or local government institution
or a local government which is registered in the State Revenue
Service Value Added Tax Taxable Persons Register in accordance
with Section 55, Paragraph one or Section 58, Paragraph one of
this Law and receives the construction services referred to in
Paragraph four of this Section in accordance with the procurement
procedures laid down in the Public Procurement Law or as a public
partner in accordance with the Law on Public-Private
Partnership.
(4) The procedures laid down in Paragraph two of this Section
shall be applicable to the construction services.
(5) Expenses directly related to the provision of a particular
service (including the acquisition and installation value of
construction products, constructions or devices, which are an
integral part of the structure, or of other devices provided for
in the laws and regulations in the field of construction, the
value of construction instruments, mechanisms or technological
equipment) shall be included in the value of the supplied
construction service.
(6) The supplier of a construction service shall issue a tax
invoice to the recipient of the construction service in which the
value of the supplied construction service shall be indicated
excluding tax.
(7) The recipient of the construction service shall pay the
value of the construction service indicated in the tax invoice to
the supplier of the construction service.
(8) [30 May 2019 / See Paragraph 34 of Transitional
Provisions]
(9) [30 May 2019 / See Paragraph 34 of Transitional
Provisions]
(10) [30 May 2019 / See Paragraph 34 of Transitional
Provisions]
(11) [30 May 2019 / See Paragraph 34 of Transitional
Provisions]
(12) The recipient of the construction service shall pay for
the received service using non-cash payments.
[27 July 2017; 30 May 2019 / Amendments regarding
the new wording of the title of the Section, the deletion of
Paragraphs eight, nine, ten, and eleven, and the new wording of
Paragraph twelve shall come into force on 1 January 2020. See
Paragraph 34 of Transitional Provisions]
Section 143. Special Tax Application
Arrangement for the Supplies of Scrap and Services Related to
Scrap
(1) The tax for the supply of scrap referred to in Paragraph
three of this Section provided inland shall be paid by a
recipient of scrap into the State budget if the following
conditions are met:
1) the supplier of scrap and the recipient of scrap are
registered taxable persons;
2) the recipient of scrap has a licence for the purchase of
metal cuttings and scrap in the Republic of Latvia or, in the
absence of such licence, a permit for the performance of Category
A or B polluting activity or waste collection, reloading, sorting
and storage.
(2) The tax for the services related to the scrap referred to
in Paragraph four of this Section that are provided inland shall
be paid into the State budget by the recipient of services if the
following conditions are met:
1) the supplier of services and the recipient of services are
registered taxable persons;
2) the recipient of scrap has a licence for the purchase of
metal cuttings and scrap in the Republic of Latvia or, in the
absence of such licence, a permit for the performance of Category
A or B polluting activity or waste collection, reloading, sorting
and storage.
(3) The procedures laid down in Paragraph one of this Section
are applicable to supply of the following scrap:
1) cuttings and scrap of ferrous and non-ferrous metals and
their alloys which have arisen as a result of economic activity
in industry, construction, agriculture or in other fields, as
well as in domestic activities;
2) metal articles or parts thereof which are not usable for
the intended purposes due to breakings, curvatures, wear or other
reasons;
3) different types of used and non-reusable means of transport
or parts thereof, including car wrecks;
4) electric and electronic equipment waste;
5) batteries and accumulators.
(4) The procedures laid down in Paragraph two of this Section
shall be applicable to the following services:
1) grading of scrap of ferrous and non-ferrous metals and
their alloys from the flows of industrial and municipal
waste;
2) sorting, separation, cutting, compressing, pressing,
casting in bars of cuttings and scrap of ferrous and non-ferrous
metals and their alloys;
3) breaking, separation, cutting, compressing, pressing of
used products of ferrous or non-ferrous metals and their alloys
and other non-reusable materials;
4) breaking, separation and sorting of metal constructions of
non-reusable buildings, engineering structures or other
infrastructure objects or parts thereof.
(5) The supplier of scrap shall issue a tax invoice to the
recipient of scrap in which the value of scrap shall be indicated
excluding tax.
(6) The recipient of scrap shall pay the value of scrap
indicated in a tax invoice to the supplier of scrap.
(7) The supplier of services referred to in Paragraph two of
this Section shall issue a tax invoice to the recipient of
services in which the value of the supplied service is indicated
excluding tax.
(8) The recipient of services referred to in Paragraph two of
this Section shall pay the value of the services indicated in the
tax invoice to the supplier of services.
(9) The recipient of scrap shall pay for the received goods
and the recipient of services referred to in Paragraph two of
this Section shall pay for the received services using non-cash
payments.
[28 November 2019; 24 November 2020]
Section 143.1 Special Tax
Application Arrangements for Supplies of Mobile Phones, Tablet
Computers, Laptop Computers, Integrated Circuit Devices and Video
Game Consoles
(1) The tax for the supply of goods referred to in Paragraph
two of this Section provided inland shall be paid by a recipient
of goods into the State budget if the supplier of goods and the
recipient of goods are registered taxable persons.
(2) The procedures referred to in Paragraph one of this
Section shall be applicable to the supply of the following
goods:
1) mobile phones;
2) tablet computers and laptop computers;
3) integrated circuit devices (including microprocessors and
central processing units);
4) video game consoles.
(3) The supplier of goods referred to in Paragraph two of this
Section shall issue a tax invoice to the recipient of goods in
which the value of the supplied goods shall be indicated
excluding tax.
(4) The recipient of goods referred to in Paragraph two of
this Section shall pay the value of goods indicated in the tax
invoice to the supplier of goods.
(5) The recipient of goods referred to in Paragraph two of
this Section shall pay for the received goods using non-cash
payments.
[30 November 2015; 27 July 2017]
Section 143.2 Special Tax
Application Arrangements for Supplies of Cereals and Technical
Crops
(1) The tax for the supply of goods referred to in Paragraph
two of this Section provided inland shall be paid by a recipient
of goods into the State budget if the supplier of goods and the
recipient of goods are registered taxable persons.
(2) The procedures referred to in Paragraph one of this
Section shall be applicable to the supply of the following
cereals and technical crops (including oil seeds), including the
supply of mixtures of these goods (which are not normally used in
the unaltered state for final consumption):
1) wheat;
2) rye;
3) barley;
4) oat;
5) corn;
6) buckwheat;
7) triticale;
8) soy bean, also split;
9) linseed, also split;
10) rape or colza seeds, also split.
(3) The supplier of goods referred to in Paragraph two of this
Section shall issue a tax invoice to the recipient of goods in
which the value of the supplied goods shall be indicated
excluding tax.
(4) The recipient of goods referred to in Paragraph two of
this Section shall pay the value of goods indicated in the tax
invoice to the supplier of goods.
(5) The recipient of goods referred to in Paragraph two of
this Section shall pay for the received goods using non-cash
payments.
[16 June 2016]
Section 143.3 Special Tax
Application Arrangements for the Supplies of Untreated Precious
Metals, Precious Metal Alloys and Metals Clad with Precious
Metals
(1) The tax for the supply of goods referred to in Paragraph
two of this Section provided inland shall be paid by a recipient
of goods into the State budget if the supplier of goods and the
recipient of goods are registered taxable persons.
(2) The procedures referred to in Paragraph one of this
Section shall be applicable to the supply of the following
goods:
1) untreated precious metals and semi-finished products
thereof, if the special tax application arrangements referred to
in Section 139 of this Law do not apply to them in transactions
with investment gold;
2) untreated precious metal alloys and semi-finished products
thereof;
3) untreated metals clad with precious metals and
semi-finished products thereof;
4) waste and scrap of precious metals or metals clad with
precious metals.
(3) The supplier of goods referred to in Paragraph two of this
Section shall issue a tax invoice to the recipient of goods in
which the value of the supplied goods shall be indicated
excluding tax.
(4) The recipient of goods referred to in Paragraph two of
this Section shall pay the value of goods indicated in the tax
invoice to the supplier of goods.
(5) The recipient of goods referred to in Paragraph two of
this Section shall pay for the received goods using non-cash
payments.
[23 November 2016]
Section 143.4 Special Tax
Application Arrangements for Supplies of Ferrous and Non-ferrous
Semi-finished Metals
(1) The tax for the supply of ferrous and non-ferrous
semi-finished metals determined by the Cabinet which is provided
inland shall be paid by a recipient of ferrous and non-ferrous
semi-finished metals into the State budget, if the supplier of
ferrous and non-ferrous semi-finished metals and the recipient of
ferrous and non-ferrous semi-finished metals are registered
taxable persons.
(2) The supplier of ferrous and non-ferrous semi-finished
metals shall issue a tax invoice to the recipient of ferrous and
non-ferrous semi-finished metals where the value of the supplied
ferrous and non-ferrous semi-finished metals shall be indicated
excluding tax.
(3) The recipient of ferrous and non-ferrous semi-finished
metals shall pay to the supplier of ferrous and non-ferrous
semi-finished products the value of ferrous and non-ferrous
semi-finished metals indicated in the tax invoice.
(4) The recipient of ferrous and non-ferrous semi-finished
metals shall pay for the received goods using non-cash
payments.
(5) The Cabinet shall determine the supplies of such goods
which are considered ferrous and non-ferrous semi-finished metals
in conformity with the Combined Nomenclature codes laid down in
Annex I to Council Regulation (EEC) No 2658/87 of 23 July 1987 on
the tariff and statistical nomenclature and on the Common Customs
Tariff, and amendments thereto.
[30 May 2019]
Section 143.5 Special Tax
Application Arrangements for the Supply of Household Electronic
Devices and Household Electrical Equipment
[30 May 2019 / See Paragraph 34 of Transitional
Provisions]
Section 144. Special Tax Application
Procedures in Transactions of Supply of Used Immovable
Property
(1) If an immovable property is not an unused immovable
property (hereinafter - the used immovable property), only a
registered taxable person has the right to apply tax on the
supply thereof.
(2) A registered taxable person shall exercise the right
referred to in Paragraph one of this Section if the used
immovable property which is registered with the State Revenue
Service is supplied to the registered taxable person.
(3) After making a transaction, a registered taxable person
shall inform the State Revenue Service in the relevant taxation
period of the supply of the used immovable property by submitting
Section C of the report on the use of the immovable property.
(4) When selling immovable property, the sales value of such
immovable property shall be taxable.
(5) The Cabinet shall determine the procedures by which a
registered taxable person shall make the input tax adjustment if
the used immovable property for the supply of which the
registered taxable person has chosen to apply the tax in
accordance with the conditions of this Section previously has not
been partially or wholly used for ensuring taxable
transactions.
[6 November 2013]
Section 145. Application of Tax in
Cases of Change of Participants of a Merchant (Undertaking),
Reorganisation of Liquidation
(1) If a State or a local government capital company is
privatised, and its new owner takes over all rights and
liabilities of the capital company in order to continue economic
activity, the transaction shall not be taxable.
(2) If a commercial company (undertaking) which during its
period of operation was not a registered taxable person is
liquidated, then the tax need not be paid when selling or
transferring the property of such person.
(3) If a commercial company (undertaking) which has been a
registered taxable person or which should have been a registered
taxable person during the period of its operation is liquidated,
then the tax for the goods supplied shall be calculated and paid
in accordance with this Law. In such cases, the person who
fulfils the functions of a liquidator shall submit a tax return
to the State Revenue Service.
(4) If a property of a registered taxable person is sold by a
bailiff, administrator of insolvency proceedings or liquidator,
the tax shall be imposed on the market value (price) or the
auction price of the property (full price bid at the auction, the
highest price bid at the auction or the initial auction price in
cases when the auction is announced as not having taken
place).
(5) If, as a result of reorganisation, a commercial company
which is a registered taxable person is divided and a new
commercial company (undertaking) is established and registered in
the State Revenue Service Value Added Tax Taxable Persons
Register within 30 days after registration in the commercial
register, the tax for the separated property and the liabilities
transferred thereby shall not be calculated.
(6) If, as a result of reorganisation, a commercial company
(undertaking) which is a registered taxable person is merged, the
tax for the transferred property and the liabilities transferred
thereby shall not be calculated.
(7) If, as a result of reorganisation, a commercial company
(undertaking) which is a registered taxable person is
restructured into a commercial company of another type, the tax
for the transferred property and the liabilities transferred
thereby shall not be calculated.
(8) If an individual merchant which is a registered taxable
person is transformed into a commercial company, the tax for the
transferred property shall not be calculated.
[6 November 2013]
Chapter
XVIII
Liability for Violations of this Law
Section 146. Liability for
Violations of this Law
(1) Liability for violations of this Law shall be determined
by this Law and other laws and regulations of the Republic of
Latvia.
(2) If a person issues a tax invoice illegally or receives a
tax that he or she does not have the right to receive, the State
Revenue Service has the right to recover the illegally received
amounts of the tax in the State budget on an uncontested basis
and to collect a fine in the amount of 100 per cent from the
illegally received amount of tax.
(3) If a registered taxable person, when importing goods that
are intended for ensuring taxable transactions, applies special
tax arrangements to transactions of importation of goods, but has
not indicated the tax amount in the tax return for the relevant
taxation period, the person shall pay a fine in the amount of 10
per cent of the amount of tax not indicated in the tax
return.
(4) If a person has not calculated and has not paid the tax
into the State budget in accordance with Section 84, Paragraph
seven, Section 86, Section 88 and Section 89 of this Law, such
person shall pay a fine in the amount of 10 per cent of the
unpaid amount of tax. Payment of the fine shall not release the
person from paying the tax into the State budget in accordance
with the procedures and in the amount laid down in this Law.
(5) Members of a VAT group shall be held jointly liable for
the violations of this Law.
(6) Members of a VAT group shall be held jointly liable for
the tax commitments arisen during the activities of the VAT group
and the time limit for the fulfilment of which has set in within
three years after exclusion of the VAT group or a member thereof
from the State Revenue Service Value Added Tax Taxable Persons
Register.
(7) A fiscal representative shall be held liable for tax
commitments arising from the transactions represented by him or
her, as well as for the presentation of supporting documents in
relation to represented transactions.
(8) A registered taxable person the property of which is sold
at an auction by a bailiff shall be held liable for the
indication of such transaction in a tax return and for the
reduction of the amount of tax to be paid into the State budget
or unjustified increase of the amount of tax to be refunded from
the State budget if the person has not provided the bailiff
information regarding the application of the tax to such
transaction or has provided false information regarding the
taxable value of the property to be sold at the auction.
(9) The administrator of insolvency proceedings shall be
responsible that within 45 days after the day when an entry on
the declaration of insolvency proceedings was made in the
Insolvency Register such tax returns of a registered taxable
person - legal person - are submitted which had to be submitted
for taxation periods until the declaration of insolvency
proceedings. Returns shall be submitted according to the
information that is at the disposal of the administrator of
insolvency proceedings.
(10) The fulfilment of the obligation referred to in Paragraph
nine of this Section shall not exempt the registered taxable
person - legal person - from the liability for non-compliance
with the time limit for submitting the tax return specified in
Section 118 of this Law.
[12 June 2014 / See Paragraph 170 of Transitional
Provisions]
Transitional
Provisions
1. With the coming into force of this Law, the Law On Value
Added Tax (Latvijas Republikas Saeimas un Ministru Kabineta
Ziņotājs, 1995, No. 9, 24; 1996, No. 11; 1997, No. 24; 1999,
No. 10, 24; 2001, No. 1, 7, 24; 2002, No. 21; 2003, No. 2, 15,
24; 2004, No. 2, 6, 8, 10, 23; 2005, No. 2, 14, 24; 2006, No. 14;
2007, No. 3; 2008, No. 5, 24; 2009, No. 2, 15; Latvijas
Vēstnesis, 2009, No. 178, 200; 2010, No. 59, 199, 206; 2011,
No. 65, 117, 202; 2012, No. 88) is repealed.
2. Tax return and annexes thereto for the last taxation period
of 2012 shall be completed and submitted in accordance with the
Cabinet Regulation No. 1640 of 22 December 2009, Regulations
Regarding Value Added Tax Return.
3. If the hire purchase contract in which a hire purchase
object conforms to the supplies of goods referred to in Section
52, Paragraph one of this Law is concluded until 1 January 2001,
the tax shall not be calculated for those payments which are to
be made in accordance with such contract after 1 January 2001. If
conditions of such hire purchase contract are not fulfilled and
the hire purchase object remains in the ownership of the lessor,
the tax shall be applicable as for leasing transactions.
4. If the hire purchase contract which provides for the supply
of taxable goods is concluded until 1 January 2001 and interest
for credit not taxable until 31 December 2000 is indicated
separately in the contract, then such interest shall not be
taxable also after 1 January 2001 until the end of operation of
the particular contract.
5. If the hire purchase contract is entered into until 30
April 2004, the tax for such transaction shall be payable
together with the payments to be made in the time limits
indicated in the contract, applying such tax rate as was
applicable to the hire purchase object on the day of concluding
the contract.
6. The crediting of hire purchase which is performed in
accordance with a contract entered into until 30 April 2004 shall
be deemed to be a financial transaction and tax shall not be
applicable thereto.
7. A registered taxable person has the right to make
adjustment of input tax in accordance with Section 105 of this
Law for such bad debts which have arisen from 1 January 2009.
8. Section 105, Paragraph four of this Law shall be applicable
to the amounts of bad debts if the court ruling on the completion
of bankruptcy procedure has been given in accordance with the
regulation of insolvency proceedings which was in force until 31
October 2010.
9. In accordance with Section 56, Paragraph three of this Law,
a taxable person of a third country or third territory who makes
taxable transactions inland and has been registered with the
State Revenue Service Value Added Tax Taxable Persons Register
until 31 December 2012 shall register an authorised person in the
State Revenue Service Value Added Tax Taxable Persons Register
until 1 July 2013.
10. Section 57, Paragraph four and Section 59, Paragraph eight
of this Law shall not be applicable to an authorised person who
represents a taxable person of another Member State or a taxable
person of a third country or third territory and who made taxable
transactions inland as an authorised person until 31 December
2012. Such person has an obligation to register in the State
Revenue Service Value Added Tax Taxable Persons Register until 1
April 2013, if it continues to make inland taxable transactions
as an authorised person after 1 January 2013.
11. Registered taxable persons who, in accordance with Section
10, Paragraphs 7.3 and 7.4 of the law On
Value Added Tax, did not deduct input tax for the acquired,
leased or imported passenger car the number of seats of which,
excluding the driver's seat, does not exceed eight seats, and
input tax for costs related to the maintenance of such car, has
the right to deduct such input tax until 30 June 2013, indicating
it in the tax return for the current taxation period.
12. Section 52, Paragraph one, Clause 21, Sub-clause "e" of
this Law in respect of the tax application to an investment made
in capital and management and supervision of securities shall be
applicable starting from 1 January 2014.
13. Until 31 December 2016, a registered taxable person has
the right to apply the tax in transactions with immovable
property which has been purchased until 27 July 2011 and to which
amendments to Section 1, Clause 16, Section 2, Paragraph
17.1 and Section 6, Paragraph one, Clause 23 of the
Law On Value Added Tax which shall come into force on 1 October
2011 apply in accordance with such procedures as laid down until
31 December 2012.
[30 November 2015]
14. Section 3, Paragraph seven, Section 58, Section 73,
Paragraph one, Clause 7 and Paragraph two, Section 84, Paragraph
eight, Section 91, Paragraph three, Section 115, Paragraph eight
and Section 142 of this Law shall be applied to the construction
services referred to in Section 142, Paragraph four of this Law
which are supplied to State and local government institutions and
local governments which have been registered or should be
registered in the State Revenue Service Value Added Tax Taxable
Persons Register in accordance with Section 55, Paragraph one or
Section 58, Paragraph one of this Law and which receive the
construction services referred to in Section 142, Paragraph four
of this Law in accordance with the procurement procedure laid
down in the Public Procurement Law or as a public partner in
accordance with the Law on Public-Private Partnership if the
contracts for the receipt of such services have been concluded
starting from 1 January 2013. The tax shall be imposed on the
construction services which are supplied to the persons referred
to in this Paragraph in accordance with the contracts concluded
until 31 December 2012 in accordance with the general procedure
laid down in this Law.
[24 January 2013]
15. Section 100, Paragraph 1.1 of this Law shall
apply to such passenger car which has been purchased, leased or
imported starting from 1 January 2014 and costs related to the
maintenance thereof (including costs for the repair of such car
and purchase of fuel). If the passenger car referred to in
Section 100, Paragraph 1.1 of this Law has been
purchased until 31 December 2013, then the norms of this Law
which were in force until 31 December 2013 shall be applicable to
the costs related to the maintenance thereof.
[6 November 2013]
16. A registered taxable person who, in accordance with
Section 10, Paragraph 7.1 of the law On Value Added
Tax and Section 100, Paragraph two of this Law, did not deduct
the input tax in full amount in 2011, 2012 and 2013, has the
right to deduct such undeducted part of the input tax for 2011 in
2014, for 2012 - in 2015, for 2013 - in 2016, indicating it in
the tax return for the current taxation period, if the passenger
car was used for ensuring taxable transactions in 2011, 2012 or
2013 accordingly. A registered taxable person shall prove the
fact that the abovementioned car was used for ensuring taxable
transactions in the relevant time period by the following:
1) the fact that records of the journeys related to the
performance of economic activity was kept in accordance with the
laws and regulations governing company car tax;
2) the fact that the car was declared in the State Register of
Vehicles and Drivers in accordance with the laws and regulations
governing company car tax.
[6 November 2013]
17. A registered taxable person who made a property investment
in 2013 (including by investing a fixed asset, except for
immovable property) in any of the commercial companies referred
to in Section 103, Paragraph 2.1 and refunded the part
of the deducted input tax into the State budget for such
investment in 2013 has the right to accordingly adjust the tax
return for the particular taxation period in 2014.
[6 November 2013]
18. Section 140 of this Law shall be repealed on 1 January
2015.
[12 June 2014]
19. Amendments in relation to rewording of Section 27 of this
Law, amendments to Section 30, as well as amendments to Section
125, Paragraph one, Clause 21 regarding the substitution of the
figure "140" with the figure "140.1" shall come into
force from 1 January 2015.
[12 June 2014]
20. The special tax calculation and payment arrangements
referred to in Section 140.1 of this Law for
electronic communications, broadcasting and electronically
supplied services for a person who is not a taxable person, as
well as amendments regarding the supplementation of Section 1 of
this Law with Clauses 4.1, 24.1 and 30
shall be applicable from 1 January 2015.
[12 June 2014]
21. The Cabinet shall issue the regulations referred to in
Section 140.1, Paragraph fourteen of this Law by 1
October 2014.
[12 June 2014]
22. Section 146, Paragraph nine of this Law shall be
applicable in relation to insolvency proceedings for which an
entry in the Insolvency Register for the declaration of
insolvency proceedings was made starting from 1 October 2014.
[12 June 2014]
23. Amendments in relation to the deletion of Section 52,
Paragraph one, Clause 8, Sub-clause "b" and Clause 25, Sub-clause
"b" of this Law, amendments to Section 52, Paragraph four, Clause
8, amendments in relation to the supplementation of Section 137
of this Law with Paragraph 2.1, and amendments to
Paragraphs three, four, five and six of this Law shall come into
force on 1 July 2016.
[30 November 2015]
24. A registered taxable person who is a supplier of service
of the administration of a residential house and wishes to apply
Section 137, Paragraph one or 2.1 of this Law after 1
July 2016 until the end of this taxation year shall inform the
State Revenue Service thereof by 30 June 2016 or upon submitting
an submission for registration in the State Revenue Service Value
Added Tax Taxable Persons Register.
[30 November 2015]
25. Section 143.1 of this Law shall come into force
on 1 April 2016.
[30 November 2015]
26. Section 73, Paragraph one, Clause 12 of this Law shall be
applicable in cases where the activities of a registered taxable
person - merchant have been suspended starting from 1 January
2016.
[17 December 2015]
27. Amendments to Section 105, Paragraphs one and three of
this Law in relation to the rounding up of said amounts of money
shall be applicable to the bad debts that have been incurred from
1 January 2017.
[23 November 2016]
28. The processor of agricultural products shall, by 1
February 2017, submit the State Revenue Service a report on the
amount and value of the agricultural products received from the
specific farmer in the year 2016 by providing the following
information therein:
1) the name, registration number in the State Revenue Service
Value Added Tax Taxable Persons Register and legal address of the
processor of agricultural products;
2) the name, registration code (for a natural person - given
name, surname, personal identity number) and legal address (for a
natural person - declared place of residence) of a farmer;
3) the type of received agricultural products and price of one
unit;
4) the total amount and total value of the agricultural
products received from each specific farmer in the taxation
year.
[23 November 2016]
29. Amendments to Section 50 of this Law regarding the
supplementation of the Section with Paragraph 7.1 and
the supplementation of Paragraph eight with Clause 4, as well as
amendments to Section 61 regarding the supplementation of the
Section with Paragraph eight and to Section 63 regarding the
supplementation of the Section with Paragraph six shall come into
force on 1 January 2018.
[20 April 2017]
30. Section 41, Paragraph one, Clause 2, Sub-clause "b",
Section 42, Paragraph sixteen of this Law and Annex to this Law
shall be in force until 31 December 2023.
[22 November 2017; 24 November 2020]
31. Amendments regarding the supplementation of Section 1 of
this Law with Clauses 31, 32, and 33, regarding the
supplementation of this Law with Sections 11.1 and
37.1, and also regarding the supplementation of
Section 124 with Paragraphs 3.1 and 3.2
shall be applied to vouchers issued from 1 July 2019.
[30 May 2019]
32. Section 52.1 of this Law shall be applied to
services supplied by the independent group of persons to members
of such group from 1 July 2019.
[30 May 2019]
33. Those independent groups of persons which meet the
conditions of Section 52.1 of this Law and wish to
continue to apply exemption from tax in accordance with Section
52.1 of this Law shall inform the State Revenue
Service of the creation of the group and the members of such
group by 1 August 2019, concurrently submitting a written
agreement on the supply of such services which are supplied by
the independent group of persons to members of this group.
[30 May 2019]
34. Amendments to Section 84, Paragraph four, Section 92,
Paragraph one, Clause 6, Section 97, Paragraph five, Section 109,
Paragraph five, Clause 4, Section 124, Paragraph five, and
Section 129, Paragraph three of this Law regarding the deletion
of figures "142" and "143.5", amendments regarding the
new wording of the title of Section 142, the deletion of
Paragraphs eight, nine, ten, and eleven and the new wording of
Paragraph twelve, and also amendments regarding the deletion of
Section 143.5 shall come into force on 1 January
2020.
[30 May 2019]
35. By 20 September 2019 the State Revenue Service shall
exclude from the State Revenue Service Value Added Tax Taxable
Persons Register such registered taxable persons (except for a
VAT group) that have been registered in the State Revenue Service
Value Added Tax Taxable Persons Register for at least 12 calendar
months, but by 20 July 2019 have not specified any transactions
in tax returns for the past 12 calendar months. A registered
taxable person shall be deemed excluded from the State Revenue
Service Value Added Tax Taxable Persons Register on the seventh
day after the decision to exclude the registered taxable person
from the State Revenue Service Value Added Tax Taxable Persons
Register has been delivered to the post office, or if the
registered taxable person is a user of the Electronic Declaration
System of the State Revenue Service - on the second working day
after the decision has been posted in the abovementioned system.
If the decision to exclude a registered taxable person from the
State Revenue Service of Value Added Tax Taxable Persons is
contested or appealed, it shall not suspend the operation of such
decision.
[20 June 2019]
36. Amendments to Section 109 of this Law shall be applicable
in respect of such overpaid tax amounts which have been indicated
in the tax returns submitted to the State Revenue Service from 1
January 2021. The overpaid tax amounts which have been included
in the tax returns submitted to the State Revenue Service until
31 December 2020 shall be repaid in accordance with the
procedures that were in force until 31 December 2020.
[24 November 2020]
37. If the deadline for the approval of the overpaid tax
amount was extended until 31 March 2020 in accordance with
Section 110 of this Law, the State Revenue Service shall refund
the approved overpaid tax amount not later than on the following
working day after approval of validity of the overpaid tax
amount.
[24 November 2020]
38. Section 41, Paragraph one, Clause 2, Sub-clause "c",
Section 42, Paragraphs seventeen and eighteen of this Law shall
be applicable from 25 December 2020 and shall be in force until
31 December 2022.
[7 January 2021]
39. Section 52, Paragraph one, Clause 26 of this Law shall be
applicable from 1 January 2022 to the service for which a
consideration for the lawful land use rights is due in the mutual
legal relationship of the land owner and the owner of the
structure regardless of the status of the land owner.
[15 November 2021]
40. Section 52, Paragraph one, Clause 26 of this Law shall
also be applicable in relation to the service for which a lease
payment is due, being determined by an agreement or a court
ruling regarding the mutual legal relationship of the land owner
and the owner of the structure in the time period from 1 January
2022 to 31 December 2023 in the cases referred to in Section 14,
Paragraph one, Clauses 1, 2, 3, and 4 of the law On the Time
Period of Coming into Force and the Procedures for the
Application of the Introduction, Parts on Inheritance Rights and
Property Rights of the Renewed Civil Law of 1937 of the Republic
of Latvia.
[15 November 2021]
41. Amendments regarding the new wording of Section 39,
Paragraph three, Clause 3, Section 90, and Section 117, Paragraph
five, Clause 4 of this Law in relation to the replacement of the
words regarding the deposit system of the reusable packaging with
the terminology used in the laws and regulations in the field of
packaging shall come into force from 1 February 2022.
[9 December 2021]
42. Section 50, Paragraph 2.1 and Section 53,
Paragraph seven, Clause 6 of this Law shall be applicable from 1
January 2021.
[10 February 2022]
43. Section 50, Paragraph two, Clause 2 of this Law shall be
applicable from 1 January 2022.
[10 February 2022]
44. Amendments regarding the supplementation of Section 50,
Paragraph five of this Law with Clause 3, the new wording of the
introductory part of Paragraph six and the supplementation of
Paragraph seven of Section 53 with Clause 7 shall come into force
on 1 July 2022.
[10 February 2022]
Informative
Reference to European Union Directives
[12 June 2014; 20 April 2017; 30
May 2019; 28 November 2019; 7 January 2021; 15 October 2020; 10
February 2022]
This Law contains legal norms arising from:
1) Thirteenth Council Directive 86/560/EEC of 17 November 1986
on the harmonization of the laws of the Member States relating to
turnover taxes - Arrangements for the refund of value added tax
to taxable persons not established in Community territory;
2) Council Directive 2006/112/EC of 28 November 2006 on the
common system of value added tax;
3) Council Directive 2006/138/EC of 19 December 2006 amending
Directive 2006/112/EC on the common system of value added tax as
regards the period of application of the value added tax
arrangements applicable to radio and television broadcasting
services and certain electronically supplied service;
4) Council Directive 2007/74/EC of 20 December 2007 on the
exemption from value added tax and excise duty of goods imported
by persons travelling from third countries;
5) Council Directive 2008/8/EC of 12 February 2008 amending
Directive 2006/112/EC on as regards the place of supply of
services;
6) Council Directive 2008/9/EC of 12 February 2008 laying down
detailed rules for the refund of value added tax, provided for in
Directive 2006/112/EC, to taxable persons not established in the
Member State of refund but established in another Member
State;
7) Council Directive 2008/117/EC of 16 December 2008 amending
Directive 2006/112/EC on the common system of value added tax to
combat tax evasion connected with intra-Community
transactions;
8) Council Directive 2009/47/EC of 5 May 2009 amending
Directive 2006/112/EC as regards reduced rates of value added
tax;
9) Council Directive 2009/132/EC of 19 October 2009
determining the scope of Article 143(b) and (c) of Directive
2006/112/EC as regards exemption from value added tax on the
final importation of certain goods (codified version);
10) Council Directive 2009/69/EC of 25 June 2009 amending
Directive 2006/112/EC on the common system of value added tax as
regards tax evasion linked to imports;
11) Council Directive 2009/162/EU of 22 December 2009 amending
various provisions of Directive 2006/112/EC on the common system
of value added tax;
12) Council Directive 2010/88/EU of 7 December 2010 amending
Directive 2006/112/EC on the common system of value added tax,
with regard to the duration of the obligation to respect a
minimum standard rate;
13) Council Directive 2010/45/EU of 13 July 2010 amending
Directive 2006/112/EC on the common system of value added tax as
regards the rules on invoicing;
14) Council Directive 2013/61/EU of 17 December 2013 amending
Directives 2006/112/EC and 2008/118/EC as regards the French
outermost regions and Mayotte in particular;
15) Council Directive (EU) 2016/856 of 25 May 2016 amending
Directive 2006/112/EC on the common system of value added tax, as
regards the duration of the obligation to respect a minimum
standard rate;
16) Council Directive (EU) 2016/1065 of 27 June 2016 amending
Directive 2006/112/EC as regards the treatment of vouchers;
17) Council Directive (EU) 2017/2455 of 5 December 2017
amending Directive 2006/112/EC and Directive 2009/132/EC as
regards certain value added tax obligations for supplies of
services and distance sales of goods;
18) Council Directive (EU) 2018/912 of 22 June 2018 amending
Directive 2006/112/EC on the common system of value added tax as
regards the obligation to respect a minimum standard rate;
19) Council Directive (EU) 2018/1910 of 4 December 2018
amending Directive 2006/112/EC as regards the harmonisation and
simplification of certain rules in the value added tax system for
the taxation of trade between Member States;
20) Council Directive (EU) 2019/475 of 18 February 2019
amending Directives 2006/112/EC and 2008/118/EC as regards the
inclusion of the Italian municipality of Campione d'Italia and
the Italian waters of Lake Lugano in the customs territory of the
Union and in the territorial application of Directive
2008/118/EC;
21) Council Directive (EU) 2017/2455 of 5 December 2017
amending Directive 2006/112/EC and Directive 2009/132/EC as
regards certain value added tax obligations for supplies of
services and distance sales of goods;
22) Council Directive (EU) 2019/1995 of 21 November 2019
amending Directive 2006/112/EC as regards provisions relating to
distance sales of goods and certain domestic supplies of
goods;
23) Council Directive (EU) 2020/2020 of 7 December 2020
amending Directive 2006/112/EC as regards temporary measures in
relation to value added tax applicable to COVID-19 vaccines and
in vitro diagnostic medical devices in response to the
COVID-19;
24) Council Directive (EU) 2021/1159 of 13 July 2021 amending
Directive 2006/112/EC as regards temporary exemptions on
importations and on certain supplies, in response to the COVID-19
pandemic;
25) Council Directive (EU) 2019/2235 of 16 December 2019
amending Directive 2006/112/EC on the common system of value
added tax and Directive 2008/118/EC concerning the general
arrangements for excise duty as regards defence efforts within
the Union framework.
The Law shall come into force on 1 January 2013.
The Law has been adopted by the Saeima on 29 November
2012.
President A. Bērziņš
Rīga, 14 December 2012
Value Added Tax Law
Annex
Fruits, Berries
and Vegetables to which the Reduced Tax Rate in the Amount of
Five Per Cent is Applied
[22 November 2017 / Annex
shall be in force until 31 December 2023 / See Paragraph 30 of
Transitional Provisions]
1. Apples
2. Chokeberries
3. Raspberries
4. Red bilberries
5. Pears
6. Carrots
7. Quinces
8. Bergamot berries
9. Sweetcorn
10. Lettuce (head lettuce) and chicory (including leaf
chicory)
11. Cranberries (including large cranberries)
12. Gooseberries
13. Fennel
14. Beetroot
15. Turnips
16. Cabbage, curly kale, broccoli, cauliflower and similar
food brassicas
17. Herbs [including dill, parsley, basil, coriander (kinza),
mint and similar]
18. Cucumbers
19. Viburnum berries
20. Red currants
21. Squash (courgette)
22. Swedes
23. Potatoes
24. Blackberries
25. Logan berries
26. Kohlrabi
27. Korinte shadberries
28. High bush blueberries
29. Garlic
30. Garlic chives
31. Pumpkins
32. Cherries
33. Cloudberries
34. Mangolds
35. Horse-radish
36. Blueberries
37. Radish
38. Wild strawberries
39. Parship
40. Patisson
41. Parsley roots
42. Rowan tree berries
43. Plums
44. Elderberries
45. Field beans
46. Beans
47. Leeks
48. Rhubarbs
49. Radishes
50. Lettuce vegetables (including, Romain lettuce, oakleaf
lettuce, rucola, endive, mizuna, sprouts)
51. Honeysuckle berries
52. Celery (root, stalk, leaf)
53. Onions and shallots
54. Spring onions
55. Sorrels
56. Sea buckthorn berries
57. Asparagus
58. Spinach
59. Tomatoes
60. Jerusalem artichokes
61. Turnips
62. Black currants
63. Strawberries
64. Peas
1The Parliament of the Republic of
Latvia
Translation © 2023 Valsts valodas centrs (State
Language Centre)