The 2012 worldwide VAT, GST and sales tax guide

I. VAT returns and payment
L ATVIA 395
VAT returns. In general, VAT returns may be filed monthly, quarterly
or semiannually, depending on the amount of taxable supplies
made by the taxable person. A VAT return must be filed by
the 20th day of the month following the end of the tax period if
it is submitted via the Electronic Declaration System or by the
15th day of the month following the end of the tax period if the
VAT return is submitted in paper format.
Effective from 1 January 2011, the VAT return must be submitted
electronically by the 20th day of the next tax period.
VAT returns must be filed every six months if, during the year
before the tax year, the amount of taxable transactions of the taxable
person did not exceed LVL 10,000 (approximately €14,500)
and if the taxable person did not perform intra-Community supplies
of goods or supply services that had a place of supply in
other EU member states.
VAT returns must be filed on a quarterly basis if, during the year
before the tax year, the amount of taxable transactions exceeded
LVL 10,000 (approximately €14,500), but did not exceed LVL
35,000 (approximately €50,000), and if the taxable person did
not perform intra-Community supplies of goods or supply services
that had a place of supply in another EU member state.
VAT returns must be filed on a monthly basis if the amount of
taxable transactions performed by a taxable person during the
year before the tax year exceeded LVL 35,000 (approximately
€50,000) or if the taxable person supplies goods or services
within the EU.
Penalties. An administrative penalty for the nonsubmission of a
VAT return is payable to the state budget in an amount ranging
from LVL 50 to LVL 500 (approximately €70 to €710). In addition,
the tax authorities can exclude the taxpayer from the registry
of VAT-taxable persons.
Also, penalties may be imposed for undeclared VAT. In such
case, the undeclared VAT must be paid, together with a penalty of
up to 30% of the unpaid VAT amount and a late penalty fine in
the amount of 0.05% per day.
A penalty for late VAT payment is imposed in the amount of
0.05% per day.
J. EU declarations
INTRASTAT. A taxable person that trades with other EU countries
must complete statistical reports, known as INTRASTAT, if the
value of either its sales or purchases of goods exceeds certain
thresholds. The applicable form, which must be submitted to the
Central Statistical Bureau of the Republic of Latvia, depends on
the threshold prescribed for acquisitions and supplies, respectively.
The following are the INTRASTAT thresholds, effective
from 1 January 2010:
• LVL 80,000 (approximately €114,000) for intra-Community
acquisitions (if this threshold is met, INTRASTAT 1A must be
submitted)