Financial Services, Industry, Latvia, Legislation, Markets and Companies, Taxation

As of January 1 next year, taxpayers will not have to register with the Revenue Service's register of VAT payers if the total value of their services and goods supplied over the 12 preceding months does not exceed EUR 40,000. If that threshold is exceeded, companies as well as private individuals will have to register with the Revenue Service's register of VAT payers.

The new provision will lessen the administrative burden on taxpayers as well as lessen the risk that fictitious enterprises do not register with the Revenue Service's register of VAT payers.

Starting January 1, the VAT reverse charge mechanism will apply to more sectors: construction supplies and related services, sale of consumer electronics and video game consoles, and others.

The Revenue Service points out that the VAT reverse charge mechanism is one of the most effective measures against large-scale VAT fraud schemes. At the moment, the mechanism applies to the logging industry and wood supplies, scrap metal industry, construction services, and others.