2024 increase from €40,000 to €50,000 for annual VAT registration threshold In the Latvian draft Budget, a proposed hike in the VAT registration threshold is set to rise from €40,000 to €50,000 per annum. This will only apply to resident businesses. Non-resident businesses, where they
Parliament reviews VAT rate cuts on food and domestic energy till Dec 2025 The Latvian Ministry of Economics is considering a two-year cut in the Value Added Tax rate on basic foodstuffs from 21% to 5%. This would cover meat, diary and bread. An extension
Inflation exceeds 21% in July (19% in June), highest in 20 years The Latvian Ministry of Economics is considering a two-year cut in the Value Added Tax rate on basic foodstuffs from 21% to 5%. This would cover meat, diary and bread. An extension to
Spiralling global electricity and gas prices force another European country to introduce VAT subsidy The Baltic state of Latvia is considering reassigning domestic electricity supplies from the standard VAT rate to 5% for 2023. The bill is now with Parliament. Any cut would include gas
Latvia enacts EU reduced VAT agreement on e-books and news 1 January 2022 The Baltic state of Latvia’s Parliament has agreed to cut the Value Added Tax rate on income from electronic books, newspapers and journals to 5% from the rate of 21%. This harmonises
COVID-19 VAT cut to help tourism The Baltic state of Latvia is considering a bill in Parliament to reduce the Value Added Tax rate on hotel accommodation and catering from 21% to 5%. This would be in effect until 31 December 2022. The bill reflects
Continuous Transaction Control (CTC) e-invoicing to follow other EU states Latvia is proposing to introduce B2B electronic invoices by January 2025. This was proposed by the Ministry of Finance, and reviewed by the Council of Ministers this week. Under the EU invoicing rules, Latvian public
The Baltic state of Latvia has moved the VAT return and payment from 20th to the 23rd of the month following the reporting period. Most businesses are on quarterly filing in Latvia unless they have intra-community supplies exceeding €50,000 per annum when they are on
COVID-19 tax support to key sectors The Baltic state of Latvia has introduced a reduced Value Added Tax rate of 5%. This will apply to certain fresh fruit, berries and vegetables. This includes fresh shelled, cut and packed produce. The new rate will only be
