VAT

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.
09.08.2019

CIT and VAT treatment of executive luxury vehicle lent for use (3/32/19)
Tax CIT VAT
The State Revenue Service has published an advance tax ruling (ATR) on the CIT and VAT treatment of an executive luxury vehicle (ELV) lent for use. This article explores the ATR conclusions.
09.08.2019

Latest VAT developments (2) (2/32/19)
Tax VAT
This article picks up where we left off last week.
02.08.2019

VAT aspects of sharing economy (3) (1/31/19)
Tax VAT
This article again picks up where we left off about sharing economy.
26.07.2019

Latest VAT developments (1) (1/30/19)
Tax VAT
Earlier this summer, Parliament adopted some long-awaited amendments to the VAT Act and to the Cabinet of Ministers’ Rule No. 17 of 3 January 2013, "Application of provisions of the VAT Act and certain requirements for paying and administering VAT." This series of articles explores what we see as key changes to the VAT treatment.
05.07.2019

VAT exemption on culture events (3/27/19)
Tax VAT
Taxpayers are unsure how various culture services qualify for a VAT exemption available under section 52(1)(17) of the VAT Act. This article explores the Finance Ministry’s comments and the situation in the European Union.
21.06.2019

VAT aspects of sharing economy (2) (2/25/19)
Tax VAT
To pick up where we left off, this article explores the VAT treatment of business done by a sharing economy platform.
14.06.2019

VAT aspects of sharing economy (1/24/19)
Accounting Tax VAT
The role of the sharing economy is growing across Europe. Perhaps only a few of us had faced it earlier when booking an apartment with Airbnb, but now we can choose from a variety of services using the principles of the sharing economy. This article explores some of its VAT aspects.
31.05.2019

VAT: margin scheme for sales of second-hand vehicles (2/22/19)
Tax VAT

Section 138 of the VAT Act prescribes a special arrangement that allows a taxable dealer supplying second-hand goods to charge VAT on the difference between the selling price and the purchase price. This article explores how the State Revenue Service (SRS) makes this margin scheme for second-hand goods applicable to sales of second-hand means of transport.
23.05.2019

Fuel card transactions: supply of goods or financial service? (1/21/19)
Tax VAT
On 15 May 2019, the Court of Justice of the European Union (CJEU) ruled on case C-235/18 Vega International regarding the VAT treatment of a transaction in which a company makes its fuel cards available to another company (business partner). This article explores the CJEU findings and their practical application.
17.05.2019

CJEU on deducting input VAT where reverse charge should have been applied (1/20/19)
Tax VAT
On 11 April 2019, the Court of Justice of the European Union (CJEU) ruled on case C‑691/17 PORR Epitesi Kft. The CJEU examined whether the Hungarian tax authority had acted contrary to the VAT directive and VAT principles in preventing a customer from deducting input tax on an invoice issued under the general VAT scheme for a supply attracting domestic reverse-charge VAT. This article explores the CJEU ruling.
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09.05.2025

Closure of PricewaterhouseCoopers tax and business portal MindLink.lv

We would like to inform you that on July 1, 2025, we will cease operations of the portal.   

The last MindLink.lv Flash News will be published on June 17, 2025. The archive of published content will be available until the portal is completely closed.   

Subscribers will be contacted individually. 

Thank you for choosing MindLink.lv as your trusted e-consultant! 

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.
See all PwC publications