VAT OBLIGATIONS IN LATVIA
How is the tax period determined in Belgium?
Your company has to report its VAT position by filing periodical VAT returns on a monthly basis provided your annual turnover of the preceding year exceeds LVL 35.000 [+/- € 50.000] or if you have intra-EU transactions. Other tax periods [quarterly or bi-yearly] were also available under specific conditions. Bi-yearly return has now been abolished since 01/01/2017.
When should periodical VAT return be filed?
Periodical VAT returns must be filed by electronic means to Latvian VAT authorities no later than the 20th day of the month [20 of N+1] following the tax period [month/quarter] to which it relates.
The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
Is this requirement laid down in the country and what is the filing deadline?
Your company has to file an annual VAT return in addition to the periodical VAT returns. The statement should be filed before May 1st [to check October 1st] of the year following the reporting period.
Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.
Are quarterly filings allowed by the country and what is the filing deadline?
The recapitulative statement [ESL] must be drawn up for each calendar month and submitted by electronic means or on paper [Form PVN2] to Latvian VAT authorities respectively by the 20th day of the month [20 of N+1] and by the 15th day of the month following the reporting period [month].
Filing the statement on a quarterly basis is not possible.
The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.
What is the payment deadline?
The VAT due should be paid by filing deadline for the VAT return - no later than the 20th day of the month following the tax period [month/quarter/bi-annual] to which it relates.
Are interim payments required?
Interim payments are not required in Latvia.
Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.