21 December 2017
From 1 January 2018 the Latvian government will introduce a number of changes to the VAT legislation in the country. These changes include:-
- The introduction of a domestic reverse charge to combat VAT fraud on constructions services, precious metals, certain consumer electronic appliances and sales of games consoles. The new mechanism will mean that businesses involved in making these types of supplies will no longer have to charge VAT on their supplies to other business customers. Instead, it will be the customers’ responsibility to account for the VAT in their own returns.
- The decrease of the VAT registration threshold from €50,000 to €40,000 (approx. £44k to £35k). This registration threshold only applies to resident companies, as non-resident companies must immediately VAT register if they are undertaking taxable sales in Latvia.