Latvia Issues Updated VAT Guidance for Online Platform Transactions to Ensure Compliance

• The Latvian State Revenue Service issued updated VAT guidance for online platform transactions.
• The guidance helps businesses comply with domestic and EU VAT obligations in e-commerce.
• Businesses must understand platform terms and user responsibilities for VAT compliance.
• The standard VAT rate in Latvia is 21 percent, with reduced rates of 12 percent and 5 percent for specific goods and services.
• A 0 percent rate applies to certain exempt cross-border supplies under EU rules.
• The place of supply rules determine whether Latvian or foreign VAT applies.
• The One-Stop-Shop scheme is available for cross-border B2C supplies.
• Taxable persons must register with the Latvian tax authority in a timely manner.
• Small enterprises may benefit from VAT exemptions if their annual EU turnover is below 100,000 euros.
• The guidance aims to improve understanding of VAT responsibilities for businesses on online platforms.

Source: globalvatcompliance.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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