Rules for registration of value added tax payers

Rules for registration of value added tax payers

Composition Composition shape Composition shape Composition shape
Persons Conditions Registration rules
LV TaxpayerThe supply of taxable goods, the total value of the services provided, has reached or exceeded EUR 40000 over a period of 12 months.  15 date of the following month when registrations are exceeded threshold
Value of goods purchased in the EU, excluding VAT, per year exceeds EUR 1000015 date of the following month when registrations are exceeded threshold
EU Member State taxable personDomestic purchases of goods within the EU or supplies of goodsBefore doing business
Domestic services subject to VAT are responsible for paying VAT to the state budget.Before doing business
Perform distance selling of goods and goods are received in Latvia, and these goods are total amount (excluding VAT) per year reaches or exceeds EUR 35000 (EUR 10000)Within 30 days of reaching that amount
The goods are supplied to an unregistered taxable person or a non-taxable person and are assembled or installed domestically.Before doing business
To a non-resident taxable person or to a non-taxable person the payer shall supply the goods to which the LR is subject to excise duty.Before doing business
Third country
tax payer
It carries out transactions subject to VAT domestically and is responsible for paying VAT to the state budget.Before doing business
Any personProvides services, the place of supply of which is determined in accordance with Section 19, Paragraph one of the VAT Law, to any taxpayer of another EU Member State or to a legal person of another EU Member State identified for the purpose of payment of tax, which does not carry out economic activity.Before the service is provided
Provide such services, the place of supply of which in accordance with Section 19, Paragraph one of this Law is another Member State and in respect of which the recipient of the services is responsible for the payment of the tax.Before the service is provided
Carries out economic activity and receives services, the place of supply of which is determined in accordance with Section 19, Paragraph one of the VAT Law, from a taxpayer of another EU Member State or a tax of a third country or third territory that does not carry out economic activity domestically.Before the service is provided

Article 19 of the Value Added Tax Act.

General rules for determining the place of supply of the service

(1) If a service is provided to a taxpayer, the place of provision of the service, unless otherwise specified in this Law, shall be:

1) the place of residence of the economic activity of the recipient of the service;

2) the location of the permanent establishment of the recipient of the service, if the service is provided to the permanent authority of the recipient of the service, which is not located at the place of the economic activity of that person;

3) the declared place of residence of the recipient of the service, but, if there are no such, the place of permanent residence, if the recipient of the service does not have a place of residence or a permanent establishment.

(2) if the service is provided to a person who is not a taxpayer, the place of supply of the service, unless otherwise specified in this Law, shall be:

1) the place of residence of the economic activity of the service provider;

2) the location of the permanent establishment of the service provider, if the service is provided from the service provider's permanent authority, which is not located at the place of the economic activity of such person;

3) the declared place of residence of the service provider, but, if there are no such, the place of permanent residence, if the service provider does not have a place of residence or a permanent establishment.