Friday December 4, 2009
Latvia has implemented a series of changes to its VAT regulations, it has emerged.
An amendment to the country’s VAT Act came into force on December 1st 2009 and introduces an alternative method of accounting for VAT on imported goods.
As part of the new procedure, VAT registered traders holding a permit from the State Revenue Service will be able to account for and report tax in their VAT return.
VAT registered traders will be able to apply for permits to the State Revenue Service through the electronic declaration system. A government regulation explaining how permits can be obtained will be issued soon.
Applicants who have no current tax arrears and meet all the criteria will have to wait just five working days for a decision to be made.
The Sophia Echo recently reported that in light of a rise in the number of fraud attempts during the first six months of 2009, Bulgaria’s National Revenue Agency plans to implement a series of stricter regulations for VAT refunds.
Friday July 17, 2009
Latvia’s prime minister has claimed the International Monetary Fund (IMF) has asked the government to consider raising its rate of VAT.
Valdis Dombrovskis said the issue was raised as the global financial body called for further clarification on measures featured in the country’s budget for next year before it agrees to offer it more funding.
According to Reuters, the VAT rise may be part of a series of conditions created by the IMF, but the central bank has claimed no tax rises will be implemented.
Discussing the issue, the bank’s governor Ilmars Rimsevics told the news agency: "The IMF does not itself dictate to Latvia, or tell Latvia what to do. It wants to see Latvian government action and understand how the 2010 budget will be drawn up."
Plans to up the rate of VAT charged in the UK at the end of this year have raised concerns with retailers, who are worried it could have an adverse effect on sales periods.
Friday June 12, 2009
The Latvian government may increase its rate of VAT in the near future, it has been suggested.
According to Baltic Business News, plans to increase the tax to 23 per cent have been included in a draft of proposed amendments to this year’s budget announcement.
The news provider claims that LETA is reporting that the increase of two per cent could come into force as soon as July 1st.
It is hoped the move will boost the government revenues by up to 32.5 million lats (£39 million).
Details about the plans have come after the Baltic Course revealed that the rate of VAT charged on firewood in Latvia is to be cut after the Saeima Budget and Finance Committee backed the proposal.
The rate on books is also set to be reduced.
Wednesday June 10, 2009
Ministers in Latvia have announced plans to cut the rate of VAT on firewood in the country.
The Saeima Budget and Finance Committee has backed plans to bring the change, which will see a rate of ten per cent charged on the materials, in to force from the start of August.
According to the Baltic Course, the move was unanimously backed and comes after former minister Atis Slakteris admitted to LETA that upping the rate was a mistake.
Plans to cut VAT on books are also in the pipeline, although it has not yet been confirmed which types of literature the amendment will apply to.
Reuters recently confirmed that the rate of VAT charged on certain renovation work in the Netherlands has been cut.
Tax on painting and plastering work will remain at its reduced level of six per cent, while rates on some insulating operations are also set to drop.
Thursday April 16, 2009
Latvia’s VAT policy for domestic and renewable energy resources is "discriminatory", according to one European advisor.
Juris Ozolins, advisor to the commissioner for energy and representative of the Libertas.Iv political union, said the Latvian parliament should look to change the policies.
The alterations to the tax policy were introduced at the end of last year by the country’s previous government and have increased energy costs and affected "nearly all households" in Latvia, he claims.
Mr Ozolins said: "It is unacceptable and absurd that the reduced 10 percent VAT rate applies to natural gas consumers, whereas the local fuel users have to pay 21 percent VAT."
European Union ministers are set to consider whether cross-border research projects in Europe could be exempt from VAT in the future.
According to the Financial Times, tax breaks for such projects would be introduced if two member states have legitimate and non-economic objectives for the research.
