Latvia VAT 2014 changes

Sun 22nd Dec 2013

There have been a number of changes to the Latvian VAT code which will come into effect in January 2014.  This includes:

  • For advertising costs, the low-value gift thresholds will not apply
  • The requirement to appoint a VAT fiscal representative by non-resident taxable persons is withdrawn
  • Services provided between members of cost savings agreements will be exempt from VAT
  • Losses which may be deducted from any VAT liability will now be based on the same principles as the corporation tax rules.
  • For the purposes of determining the proportion of VAT supplies which are liable to VAT or exempt, rounded-up percentages should be used.