Latvian Tax Agency Clarifies VAT on Land Sales with Infrastructure as Building Land

• The Latvian State Revenue Service issued guidance on VAT for land sales with infrastructure.
• A company sought clarification on VAT for newly-created land plots with infrastructure.
• VAT applies to land plot sales due to a valid building permit.
• Infrastructure like water and sewage systems is not considered unused real estate.
• Changing land use from agricultural to residential does not affect VAT applicability.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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