AGREEMENT
IMPLEMENTING THE PROTOCOL ON THE PRIVILEGES AND IMMUNITIES OF THE EUROPEAN COMMUNITIES IN THE REPUBLIC OF LATVIA

Whereas, pursuant to the Protocol on the Privileges and Immunities of the European Communities (hereafter "the Protocol") annexed to the Treaty establishing a single Council and a single Commission of the European Communities, the institutions of the European Communities are required to cooperate with the competent authorities of the Member States concerned by the application of the Protocol in question, the Republic of Latvia and the European Communities agree on the following arrangements:

Article 1

Extent of exemption

In accordance with the second indent of Article 3 of the Protocol, the authorities of the Republic of Latvia shall grant the European Communities exemption from VAT and all other duties and taxes on the goods and services which the European Communities acquire for their official use within the limits of Article 2 and under the conditions established in Article 3.

Article 2

Volume of purchases

1. The authorities of the Republic of Latvia shall apply the exemption provided for above in Article 1 within the limits set by the host Member State (the country in which the European Community institution acquiring the goods or receiving the services is established).

2. Where the Republic of Latvia is the host Member State, exemption from taxes on the supply of goods or services shall be granted, provided that the value of such goods or services exceeds 125 LVL including tax per invoice.

Article 3

Exemption for local and intra-Community purchases

1. In the case of local purchases of goods or services, the authorities of the Republic of Latvia shall give effect to the exemption provided for above in Article 1 by reimbursing VAT and other indirect taxes charged to the European Communities. To that end, requests for reimbursement shall be sent annually by the European Communities to the Ministry of Foreign Affairs of the Republic of Latvia. The authorities of the Republic of Latvia shall ensure that reimbursement is made within six months after receipt of the request.

2. In the case of VAT on intra-Community purchases of goods and services, the authorities of the Republic of Latvia shall grant the European Communities direct exemption in accordance with Article 15(10) of Council Directive 77/388/EEC¹, provided that the supplier has obtained a form certifying exemption of the goods and services to be supplied, duly endorsed by the competent authorities.

3. In the case of excise duty on intra-Community purchases of goods, the authorities of the Republic of Latvia shall grant the European Communities direct exemption under Article 23 of Directive 92/12/EEC² and by applying the procedure provided for in Regulation (CE) No 31/96 of the Commission³.

Article 4

Staff of the European Communities

Under Article 13(2) of the Protocol, the authorities of the Republic of Latvia shall grant exemption from national taxes to the persons provided for in Article 2 of Council Regulation No 260/68⁴, who are subject to Community taxation on their wages, salaries and emoluments paid by the Communities in application of Council Regulation No 259/68⁵ with respect to such wages, salaries and emoluments.

Article 5

Amendments

Any amendment to these provisions shall require the assent of both parties.

Article 6

Entry into force

These provisions shall enter into force on 1 May 2004.

The Republic of Latvia undertakes to introduce the necessary laws to implement the above-mentioned exemptions by that date.

Done in duplicate.

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¹ Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes- common system of value added tax: uniform basis of assessment, OJ L 145 of 13.6.1977, p.1, as amended most recently by Council Directive 2003/92/EC of 7 October 2003, OJ L 260, p. 8.

2 Council Directive 92/12/EEC of 25 February 1992, on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products, as last amended by Council Directive 2000/47/EC of 20 July 2000, OJ L 193, 29.7.2000, p. 73.

³ Commission Regulation (EC) No 31/96 of 10 January 1996 on the excise duty exemption certificate, OJ L 8, 11.01.1996, p. 8.

⁴ OJ L 56, 04.03.1968, p. 8 last amended by Council Regulation (EC, Euratom) No 1750/2002 of 30 September 2002, OJ L 264 , 02.10.2002, p. 15.

⁵ OJ L 56, 04.03.1968, p. 1, last amended by Council Regulation (EC, ECSC, Euratom) No 628/2000 of 20 March 2000, O J L 076, 25.03.2000, p. 1.