VAT

31.03.2020

Tax policy measures to deal with COVID-19 implications (2) 1/14/20
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The government is working hard to put support measures in place for entities affected by the COVID-19 crisis. Last week the Cabinet of Ministers put into effect a number of rules concerning industries affected by the COVID-19 crisis and how employers in those industries qualify for idle-time benefit. Despite the original intention to restrict tax deadline extensions and idle-time benefit to entities operating in the listed industries, at the meeting of 26 March, the Cabinet of Ministers approved a set of criteria to make an affected entity in any industry eligible for idle-time benefit and tax holidays for up to three years. This article explores what we see as key points.
24.03.2020

Tax policy measures to overcome COVID-19 consequences 1/13/20
Tax Covid-19 VAT

Many countries have seen a rapid drop in economic activity due to COVID-19 and are trying to adopt some extraordinary tax policy measures in order to limit the damage and protect business. A fast response is crucial when it comes to mitigating the impact of the crisis. This article explores some of the tax policy measures recently adopted in Europe and Latvia.
20.03.2020

Tax laws must be clear enough especially with liability for tax offences (2/12/20)
Tax VAT
Although the State Revenue Service (“SRS”) has already changed their approach to the VAT treatment of prematurely terminated finance leases for second-hand vehicles, this article explores some of the findings made by the Supreme Court’s Administrative Division in its ruling of 10 April 2019 (case No. A420404414, SKA-54/2019) which can help us determine the VAT treatment in other situations.
18.03.2020

COVID-19 implications: tax solutions 1/13/20
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To deal with the consequences of COVID-19, the Latvian government has decided to add tax solutions to its package of social and business measures.
06.03.2020

Documentation for VAT zero rating (3/10/20)
Tax VAT
On 10 December 2019, we informed our MindLink.lv subscribers that effective from 2020, Council Implementing Regulation (EU) 2018/1912 of 4 December 2018 prescribes a set of documents that must be available when it comes to zero-rating a supply of goods to a taxable person established in another member state. This article answers certain questions about how to apply the Regulation in practice.
06.03.2020

VAT treatment of e-commerce to be simplified (2/10/20)
Tax VAT
Given the European Commission’s long-term commitment to building a final VAT system that would be simpler and more secure against fraud, businesses engaged in cross-border trade will find it easier to meet their VAT obligations from 1 January 2021 thanks to the One Stop Shop, which eases the VAT burden and removes obstacles to cross-border trade. This article explores some of the expected changes to the VAT treatment of e-commerce from 2021.
14.02.2020

Incoterms 2020: updated terms for supplies of goods (1/7/20)
Tax VAT
The International Commercial Terms (Incoterms) provide for the apportionment of responsibility, obligations and costs between the buyer and the seller in international contracts for supplies of goods. On 10 September 2019 the International Chamber of Commerce(ICC) published the latest version, Incoterms 2020, which came into force on 1 January 2020. This version presents revised Incoterms 2010 to accurately reflect today’s commercial practices. This article explores what we see as key changes to the Incoterms.
07.01.2020

Technology makes paying business taxes easier 1/2/20
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Paying Taxes 2020,  an annual study of global tax administration produced by PwC and the World Bank Group, finds that economies around the world have made it substantially easier for their businesses to pay taxes thanks to technology. The report highlights the significant advantages that tax authorities give their taxpayers if they embrace technological advances. In Brazil and Vietnam, for example, the time it takes to comply with tax obligations fell by 23%, while some other countries reported a big drop in the number of tax payments.
19.12.2019

VAT on services: identifying place of supply (2/51/19)
Tax VAT
Suppliers need to know the place of supply of their services to identify the country in which VAT is payable and to find out whether they are liable to register for foreign VAT. Customers also need to know the place of supply of services to find out whether they are liable to pay VAT. This article explores the customer’s status, the core principles for identifying the place of supply, and statutory exceptions.
13.12.2019

Documentary evidence for VAT exemption on intra-Community supplies (2/50/19)
Accounting Tax VAT
Council Implementing Regulation (EU) 2018/1912 of 4 December 2018 amending Implementing Regulation (EU) No. 282/2011 as regards certain exemptions for intra-Community transactions is taking effect from 2020. As member states have put up various preconditions for applying these VAT exemptions, which cause complications and legal uncertainty for businesses, the new Regulation specifies and aligns the conditions to be satisfied for an exemption.
15.11.2019

Transaction recognised as transfer of business, not supply of goods (2/46/19)
Legal Tax VAT
Hiding the true substance of one transaction by substituting another to obtain a tax advantage is not an unusual case heard by the courts. This time the court ruled in favour of the State Revenue Service (SRS) after finding that a taxable person had wrongly deducted input VAT according to a supplier’s pro forma invoices for the purchase of movables, because the real transactions are recognised as the transfer of a business as a going concern, which is outside the scope of VAT.
08.11.2019

Is input VAT deductible after breach of industry rules? (1/45/19)
Tax VAT
We have written earlier about the Supreme Court of Latvia asking the Court of Justice of the European Union (CJEU) to make a preliminary ruling on Altic SIA (the “Company”) vs the Latvian State Revenue Service (SRS) regarding a possible breach of food industry rules in relation to input tax deduction rights. This article explores the CJEU’s Ruling C-329/18.
29.10.2019

Cash pool: transfer pricing aspects (3) 1/44/19
Free access Tax VAT

To complete our series of articles on the transfer pricing (TP) aspects of a cash pool, this article explores what data and sources are used in practice for setting fees (interest rates) for cash pool members depositing and borrowing cash.
23.08.2019

Latest VAT developments (3) (2/34/19)
Tax VAT
This article completes what we wrote last week.
16.08.2019

Deducting input VAT in chain of consecutive supplies (3/33/19)
Tax VAT
On 10 July 2019, the Court of Justice of the European Union (CJEU) ruled on Case C-273/18 Kursu Zeme SIA vs the Latvian State Revenue Service (SRS), which examined the question of whether in a chain of consecutive cross-border supplies of goods with one transportation, the end customer – a Latvian entity – had the right to deduct the input VAT appearing on another Latvian entity’s tax invoices if Kursu Zeme SIA received the goods in Lithuania (at the original supplier’s warehouse) and itself ensured transportation to Latvia. This article explores the CJEU findings.
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21.06.2023

What should you think about if you want to move to Latvia?

Tax resident status prescribes a personal income tax (PIT) liability on your worldwide income in your tax residence country. You should carefully assess your tax resident status to avoid potential double taxation, if the tax authorities of two countries treat you as their tax resident.
17.03.2023

Nasdaq welcomes PwC as a certified adviser on First North

“By working closely with multiple executives and shareholders of both private and State-owned corporates, we have observed an increasing interest about the capital markets. Business leaders have become more ambitious and better aware of the myriad of benefits from attracting capital via the exchange. At PwC, we are confident that First North Certified Adviser status will allow us to provide a more diversified advice for our clients in the Baltic region and help navigate them in the journey of an intensified capital market activity,” highlights Raimonds Dauksts, Head of Advisory at PwC Latvia.

First North is a growth market designed for ambitious small and medium-sized companies in the Baltics. Being a Certified Adviser permits PwC to guide growth companies in Baltics through the Firth North application process and ensure they meet all the market’s requirements on a continuous basis.
07.03.2023

ESG reporting news - podcast 30 min (in Latvian)

Eiropas Parlaments pagājušā gada novembrī oficiāli apstiprināja Korporatīvās ilgtspējas ziņošanas direktīvu jeb CSRD (Corporate Sustainability Reporting Directive). Šobrīd Eiropas Savienības dalībvalstu, t.sk. Latvijas, rīcībā ir 18 mēneši, lai šo direktīvu pārņemtu savos tiesību aktos. Šādi iecerēts uzlabot pieejamās nefinanšu informācijas kvalitāti, nodrošinot uzņēmumu dažādo ietekmes pušu vajadzības un veicināt kopējo Eiropas pāreju uz ilgtspējīgāku ekonomiku.  

Šajā PwC Nodokļu podkāsta epizodē PwC Latvija ilgtspējas pakalpojumu vadītāja Maija Orbidāne skaidro, kādas ir šīs direktīvas prasības, kā tas ietekmēs uzņēmējus Latvijā un kādi ir laicīgi veicamie mājasdarbi šajā sakarā.
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