Amendments To The Law "on Value Added Tax"

Original Language Title: Grozījumi likumā "Par pievienotās vērtības nodokli"

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/223562

The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on value added tax" make law "on value added tax" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1995, no. 9, 24; 1996; 1997, no. 11, 24 no; 1999, 10, 24; 2001, nr. 1, 7.24. No; 2002; 2003, 21 No 2., 15., 24., 2004, no; 2, 6, 8, 10, 2005 23 no; , 2, 14, no. 24; 2006, no. 14; in 2007, no 3; 2008, 5, 24 no; 2009, 2., no. 15; Latvian journal, 2009, 178, 200. no; 2010, 59, no. 199) the following amendments: 1. Add to article 2 to the 21.4 and 21.5 part as follows: "(214) if the taxable person property sold at auction, the bailiff or the insolvency practitioner, a taxable property auction price (full price, high nosolīt nosolīt price or auction starting price when the auction not been declared) according to the law the taxable value.
(215) If a taxable person of goods sold at auction, the bailiff, the taxable value is determined based on the taxable person, the bailiff before auction notification. If the taxable person has not notified the bailiff that information, all the taxable property auction price (full price, high nosolīt nosolīt price or auction starting price when the auction has been declared not to have occurred). "
2. in article 4: turn off the third subparagraph of paragraph 5 and 6;
to supplement the article with seventh, eighth, ninth and tenth by the following: "(7) If a taxable person is delivered to gas, using a natural gas system situated within the territory of the European Union, or networks that are connected to this system, electricity, heat or cooling energy through heating or cooling networks, the place of the supply of goods is the person: 1) the operating seat;
2) permanent body location if the gas, electricity, heat or cooling energy supply in the person's permanent authority that is not in the operating seat;
3) declared place of residence or domicile, if that person is not the operating seat or standing authority.
(8) in the seventh paragraph of this article shall apply where the following conditions are met: 1) the taxable person's economic activities is the seventh part of this article, goods referred to in the purchase and resale;
2) of this article, the taxable persons referred to in the seventh part of the consumption goods is negligible.
(9) if the seventh part of this article, the supply of goods referred to in this article do not apply the eighth subparagraph, the place of supply of goods shall be deemed to be the place where the goods are actually being consumed.
(10) If the seventh part of this article the said goods are not consumed at all or are consumed partially consumed items not considered consumed at the place where the recipient of the goods is the operating seat or permanent body to which the goods, or, if there is no operating seat or fixed establishment, the place of residence declared or permanent-residence. "
3. Express the twelfth part of article 4.1 11 as follows: ' 11) provision of access to the natural gas system situated within the territory of the European Union, or networks that are connected to this system, the electricity supply system or heating or cooling networks, as well as the transmission or distribution services and other services closely linked thereto. "
4. in article 5: make the first paragraph by the following: "(1) the standard rate of tax to 22 percent (the tax standard rate) determines the taxable transactions, unless this Act provides otherwise. ';
make the third paragraph as follows: "(3) the reduced tax rate of 12% (reduced rate of duty) shall determine the taxable transactions under article 6.2 of this law."
5. Supplement article 6, second paragraph with paragraph 8 by the following: ' 8) imports of goods: (a) the institutions of the European Union) or their representation in the territory of the European Union, the European Atomic Energy Community, the European Central bank or the European investment bank, or an institution of the European Union, the organization created the 8 April 1965 Protocol on the privileges and immunities of the European Union, in accordance with this Protocol and its implementation in contractual conditions , b) in the Republic of Latvia or other Member States of the European Union registered international organizations other than those referred to in points "a", or the representative of such organizations in accordance with the international conventions to which this organization created the conditions. "
6. in article 6.2: make the title and the introductory part of the first paragraph by the following: ' article 6.2. The reduced rates of duty, the application of the reduced rate of duty shall apply: ";
turn off the first part of paragraph 16.
7. Article 7: turn off the first part of paragraph 6 of the "b" and "d".
make the first part of paragraph 6 of section "e" by the following: "(e)) the European Union institutions or their representations on the territory of the European Union, the European Atomic Energy Community, the European Central bank, the European investment bank or the European institutions created organizations that apply 1965 8 April the Protocol on the privileges and immunities of the European Union, in accordance with this Protocol and its implementation in contractual conditions";
Add to the first part of paragraph 6 of section "g" with the following: "(g)) in the Republic of Latvia or other Member States of the European Union registered international organizations other than those referred to in the" e "in subparagraph, or representations of such organizations or their employees who are in the territory of the European Union diplomatic status, in accordance with the international conventions to which this organization created the conditions,";
make the first part of paragraph 12 the following: "gas imports, 12) where gas is delivered through a natural gas system situated within the territory of the European Union, or networks that are connected to this system, or pump the gas from the gas carrier system or natural gas line network;";
to supplement the first part with 14 and 15 points by the following: "14) electricity imports;
15) heat or cooling energy imports, if the heat or cooling energy is delivered through heating or cooling networks. "
8. Supplement article 8 with 4.5 part as follows: "(45) the bailiff or the insolvency practitioner tax bill on the sale of property by auction on behalf of the taxable person statement within 15 days of the date when the bailiff has elapsed or the insolvency practitioner in the calculation of the time limit for appeals and this estimate is not appealed, or if this estimate is appealed, from the date of entry into force of the Court judgment on the estimates drawn up."
9. Article 10: make the fourth paragraph (1) of the following: "taxable person 1) deducted the input VAT on the use of the purchase of real estate, as well as on real estate construction, reconstruction, renovation or restoration, subject to the following conditions: (a)) if real property intended to be used only for business purposes, input report in accordance with point 1.1 this part, subject to the use of real property taxable and non-taxable transactions, b) where real property is to be used and operating needs and for other purposes that are not related to the taxable person's economic activities, input report in accordance with point 1.1 this part on the part of the immovable property, which is intended for use for the purposes of economic activity; "
Add to fourth with 1.1 and 1.2 of paragraph 1 by the following: ' 11) If this part, paragraph 1 of the real estate or parts intended to be used only for business purposes, input report: a) in full, if the real property or portion thereof is to be used only for taxable transactions, b) partly under the ninth part of this article, if separate property or part of the records of use taxable or non-taxable transactions , c) partly under the tenth, the limits of use of the immovable property taxable and non taxable proportion of transactions, if it is not possible to provide a separate real estate records of the use of all or part of the taxable or non-taxable transactions;
12) If this part, paragraph 1 of the real estate is to be used only for purposes that are not related to the taxable person's economic activities, input not; "
turn off the fourth part of the second sentence of paragraph 2;
Add to fourth with 2.1 as follows: "21) by registering in this State revenue service parts referred to in paragraph 2, the real estate, taxable person indicates the total amount of duty presented in tax invoices received for the purchase of real estate, construction, reconstruction, renovation or restoration, as well as in the amount of the input tax deducted according to:

(a) the use of the immovable property) ratio for business and other purposes not related to the taxable person's economic activities, (b)) of economic activity in the real property taxable and non taxable proportion transactions; "
to make the fourth paragraph 3 by the following: "3) taxable person within 10 years, starting with the tax year in which the real property is acquired or taken into service in until May 1 of the year of the pēctaksācij in writing inform the State revenue service on the use of immovable property taxation year under this part, the proportion referred to in paragraph 2.1 and budget or from the budget due to be repaid the amount of the tax; ';
replace the fourth subparagraph of paragraph 4, the words "subject to the use of real property taxable and non taxable proportion of transactions" with the words "subject to this and the number of shares referred to in paragraph 2.1 real estate use proportions";
to make the fourth part of paragraph 5 by the following: "5) pretax adjustment is necessary if the taxation year referred to in paragraph 2.1 of this part proportions have not changed;"
Add to article 7.1, 7.2, 7.3 and with 7.4 part as follows: "(71) of the budget payable tax amounts as input tax is not deductible from the tax on 20 percent purchased, leased or imported light passenger car, of which the number of seating positions, excluding the driver's seat, not more than eight seats, as well as with the following car maintenance costs, including costs for car repair and fuel purchase.
(72) this article 7.1 part does not extend to cases where: 1) taxable persons shall purchase, lease or imports light passenger car the following taxable transactions: a) for the carriage of passengers for reward, including taxi services, b) passenger car rental services, c) car sales or hire purchase (leasing) transactions, (d)) the provision of services, e) driving skills training, f) security services;
2) lightweight passenger car is operating the vehicle;
3) lightweight passenger car is used as an authorized car dealer demo cars.
(73) From budget tax amounts paid as input tax is not deductible on purchase, rental, or import the light passenger car, in which the number of seating positions, excluding the driver's seat, not more than eight seats, if the taxable person's business, which are not subject to tax in accordance with article 6 of this law, or business to which the norms of this law is not applicable, the percentage of the previous 12 months, more than 50 percent of the total deal value.
(74) the budget payable tax amount as input tax is not deductible for the costs associated with this article 7.3 car referred to maintenance, including the cost of car repairs and fuel purchases, if the taxable person's business, which are not subject to tax in accordance with article 6 of this law, or business to which the norms of this law is not applicable, the percentage of the respective tax period exceeds 50 per cent of the total value of the transaction. "
10. in article 12: Add to the first paragraph, the words "except as provided for in this article";
replace the part number and name in the 1.11 "15. date" with a number and the word "date" 20;
replace the words "paragraph 1.17 of the 6th" with the number "6.1";
Add to article 1.20 part as follows: "(120) tax calculated on taxable sales of personal belongings of the bailiff of the auction, the bailiff lodged in the State budget within 20 days from the date when the bailiff has elapsed in the calculation of the time limit for appeals and this estimate is not appealed, or if this estimate is appealed, from the date of entry into force of the Court judgment on the estimates drawn up.";
Express and share in this 12.7 12.6: "(126) the end of the tax year, the State revenue service this article 12.5 overpayment referred to in part repay the taxable person's bank account specified in 10 days after the State revenue service has confirmed the amount of tax overpaid for the tax year.
(127) the amount of tax overpaid, originating during the tax period, the State Revenue Service released these persons in specified bank account, subject to the time limit set out in part 12.3, if the implementation of any of the following conditions: 1) taxable persons with a 0% interest rate for taxable transactions and transactions that place is not the domestic, is at least 90 percent of the total taxable value of transactions;
2) excess tax amount exceeds 1000 lats and the taxable person by the tax 0% interest rate or a reduced rate of tax of transactions or the taxable transaction, that place is not domestic, the volume is at least 20 percent of the total taxable value of transactions;
3) the amount of the excess tax that built up on fixed assets exceeding 100 lats and the taxable person has requested these overpaid tax amounts;
4) excess tax amount exceeds 1000 lats and created for goods purchased and services received to provide business with wood;
5) excess tax amount exceeds 8000. ";
express part follows 12.11: (1211), the State revenue service has the right to extend this article 12.3 of the term set out in part 1), if a decision on tax audit (audit) of initiation for those transactions, which requires additional information, — until the day when the State revenue service will outline deal and made a decision on the merits of the request;
2 the taxable person) is to be adjusted pretax deduction of debts, lost — until the date when the correction was made;
3) person is not well documented tax 0 interest rate validity of application — until the day when the State revenue service will be able to verify the validity of the application of these rates;
4) the State revenue service has sent notice of the test data, — until the day when the State revenue service will have taken a decision on the merits of the request;
5) within 30 days after receipt of the tax return for the tax period, have requested additional information to be submitted within 15 days of receipt of the request and the required amount of tax overpaid for approval, until the day when the State revenue service will have taken a decision on the merits of the request; following the decision of the State revenue service taken not later than 75 days after receiving the Declaration for the tax period. "
11. Express 12.2 article as follows: "article 12.2. Tax rebate on the territory of the European Union for not registered taxable person (1) the European Union is not a registered person tax paid on domestically purchased goods and services received economic activity outside the territory of the European Union, released under the principles of parity, if the time period for which you require to pay back tax, the person: 1) has registered economic activity in their country of residence outside the territory of the European Union;
2) corresponds to the taxable person's status in your country of residence outside the territory of the European Union;
3) is not registered with the State revenue service value added tax register of taxable persons;
4) carried out in accordance with the laws and regulations of the register of economic activities in the Republic of Latvia.
(2) the Cabinet of Ministers, subject to the requirements of the first subparagraph: 1) determine the arrangements for the refund of tax and refundable tax minimum amount;
2) determines the time of repayment of the tax, pursuant to this law, the second paragraph of article 5 paragraph 2;
3) national revenue submitted documents and their submission deadlines;
4) tax rebate application be approved for the sample form. "
12. To complement the second paragraph of article 5 paragraph 2, after the word "period" with the words "which may not exceed four months from the date of receipt of the application, or six months if additional information is required, or eight months if more information is requested again".
13. Replace article 13 of the seventh part number and the words "21 percent rate" with the words "standard rate".
14. To make article 14, fourth paragraph as follows: "(4) where a taxable person sells property, the bailiff, the insolvency administrator or liquidator, taxable property market value (price) or auction price (full price, high nosolīt nosolīt price or auction starting price when the auction has been declared not to have occurred)."
15. Supplement article 18 with the fifth paragraph as follows: "(5) For the supply of goods on the territory of the European Union does not consider this law, article 4 of the seventh part of the goods referred to in the delivery, if it was made under article 4 of this law, or the eighth ninth tenth parts."
16. the express article 30, first paragraph, second sentence by the following:

"That provision also applies to people who, from another taxable person receives electricity and gas through a natural gas system situated within the territory of the European Union, or networks that are connected to this system."
17. transitional provisions: replace paragraph 54 in the second sentence, the words "tax and a 10 percent rate" with the words "decrease in the tax rate";
transitional provisions be supplemented with 70, 71 and 72 of the following: 70. " If the delivery of goods in accordance with article 8 of this law, the first paragraph or provision of the service in accordance with article 8 of this law, the second part of 2010 took place December 31, but the tax bill is not yet discharged, this deal applies the respective tax rate for such goods or services was applicable until 31 December 2010.
71. In transactions for which the payment was made through the agent of this deal until 2010 December 31, goods supplier or service provider will apply the rate of tax that such transactions was applicable until December 31 2010.
72. the labelling of cigarettes the excise duty stamps ordered by 2010 31 December and the maximum retail price, taking into account the specific tax rate of 21 percent, and that with the appropriate excise duty stamps released for free circulation or been released for consumption until January 31, 2011, to apply the tax rate that was applicable to the 2010 December 31, but no longer than up to 31 March 2011. "
18. To supplement the informative reference to directives of the European Union with the following paragraph 12: ' 12) Council of 22 December 2009 directive 2009/162/EU, amending various provisions of Directive 2006/112/EC on the common system of value added tax. "
The law shall enter into force on January 1, 2011.
The Parliament adopted the law on 20 December 2010.
President Valdis Zatlers in Riga of 2010 December 30.