The Saeima has adopted and the President promulgated the following laws: About a value added tax chapter I General provisions article 1. The terms used in the law, the law is applied in the following terms: 1) item: any thing (property) that changes for consideration, where this Act provides otherwise;
2) supply of goods — a deal that gets as the transfer for consideration to another person to be able to handle things (property). For the supply of goods is considered to be not applied to real estate the first sale after the construction works;
3) — provision of services business, which gets rather than as the supply of goods, but as the action carried out by a person for remuneration, including goodwill, and liabilities, as well as any sale (transfer) to refrain from any action or allow any action, as well as the rental of goods. For the provision of services is considered also the transfer of the property to the owner after the construction works;
4) remuneration: the value of goods and services in monetary terms, which the supplier or service provider receives from the purchaser or other person as a payment, or that it should receive as payment (including excise taxes and other taxes and fees) for the supply of goods or services, irrespective of whether payment made in full or in part;
5) pašpatēriņš — goods and services entrepreneur, his family members and other persons, including employees, free of charge, as well as receive that portion of the value of goods and services below market value;
6) economic activity — any activity for remuneration;
7) business — regular economic activities with the aim to make a profit;
8) domestic — the territory of the Republic of Latvia, except the territories covered by a specific customs rules;
9) input: the amount that the supplier of the goods or service provider is paid as the value added tax on goods and services purchased or received in order to ensure their economic activities;
10) broker-a person who carries out the delivery of goods, without becoming the owner of the goods or services on behalf of another person, for the purpose of implementing the interests of delivery of the goods and services transactions;
11) budget institutions, national and local authorities and organisations, whose stay is financed from the State budget or local budget;
12) market value of supplies of goods or services in the private case, the consideration for the goods or services, assuming that the goods are delivered or the services are provided for profit;
13) customs value: value, determined in accordance with the law "on the customs duties (tariffs)" and the customs code;
14) Exchange (bārter) — an exchange of goods transactions transactions without cash settlement; -cashless payment for sold (purchased) goods, securities or services based on netting with a counterclaim.
2. article. Of value added tax taxable object (1) value added tax (hereinafter also-tax) taxed all the taxable value of transactions that are made domestically by the taxable person, where this Act provides otherwise.
(2) value added tax transactions subject are: 1) the supply of goods;
2) services;
3) commodities;
4) pašpatēriņš.
(3) the taxable supply of goods or services provided are for the supply of goods or services remuneration payable in money terms without value added tax. Providing mediation services, about the value of taxable, considered as mediation.
(4) If the value added tax-taxable person representing a foreign legal or natural person participating in the supply of goods or the provision of services, it is considered that this same person has supplied goods or provided services, and are subject to tax all domestic goods and services delivery.
(5) If the intermediary receives full payment for the supply of goods, this intermediary is considered the product vendor and the value of the goods delivered is taxable.
(6) the supply of goods value includes the remuneration payable, purchasing products, or the value for customs purposes, as well as all additional payments for the supply of goods, insurance, packaging and transport, excise and customs duty paid on goods, excluding value added tax.
(7) the taxable value of bārter and clearing transactions or supply of goods and services in cases where partial compensation for the money, is such a product or service in the market value of the supply of goods or services at the moment.
(8) if the taxable person customs procedures laid down in the legislation of domestic items exported for processing into or processed in another country, and then imported, the value of the goods is determined by the remuneration paid for the treatment of the subject, or by value, which is calculated as the difference between the value of goods imported after processing, and its value at the time of exportation.
(9) the suppliers of goods or service providers own or bought goods or services for private use, the free of charge or for a partial reimbursement of other producers or consumers, the taxable value is determined as the market for goods and services.
3. article. Of value added tax taxable persons and their registration (1) the taxable person (hereinafter taxable person also) is a natural or legal person and such person with a contract or bargain-related groups or their representatives who made this law, article 2, second paragraph referred to and are registered or it needed to register in accordance with the procedure laid down in this article.
(2) the taxable person is also budget authority, if it carries out deliveries of goods and services to other people.
(3) a natural or legal person and such person with a contract or bargain-related groups, or their representatives, of which the taxable supplies of goods and services, the total value of the previous 12 months reached or exceeded 10 000 LVL, you need to register with the State revenue service no later than one month after exceeding this amount or as taxable persons.
(4) the natural or legal person and such person with a contract or bargain-related groups or their representatives are entitled to enroll in the State revenue service as taxable persons where the supply of goods and services, the total value of the previous 12 months (start-up company: the next 12 months) amounted to more than 75 percent of this or the third paragraph of article specific amounts.
(5) the right to deduct input tax is the taxable persons.
(6) a Person who is registered in accordance with this article, the third and fourth part, acquires the right to deduct input tax that it paid after the person registered as the State revenue service with value added tax-taxable person.
(7) a taxable person may apply to the State revenue service with application for its removal from the register of taxable persons after a year from the moment of registration, except as provided for in this article. The following taxable persons in the net book value of fixed assets, as well as the balance of trade in value of the materials, which are paid from the budget and paid input tax are accounted for and paid from the budget must be paid back in pretax forecast. The State revenue service has the right to decide on the exclusion of a person from the register of taxable persons of the year faster from the moment of registration in the case of this company (the company) the liquidation or reorganization.
(8) domestic goods on importation, value added tax paid on the border of both the taxable person and any other person who brings the goods.
(9) where the foreign natural or legal person providing domestic article 4 of these services, it is required to register as a taxable person, must be calculated and paid in tax in the budget, in accordance with the procedure laid down in this Act. If Latvia's natural or legal person registered to use foreign natural or legal persons taxable services, tax paid to intermediaries who provide this service domestically or, failing that, a recipient of the service.
4. article. The delivery of the goods and the place of supply of services (1) delivery of the goods and the place of supply of services is the criterion for determining whether a supply of goods and services in domestic or not.
(2) the place of supply is the place where the goods are at the time when it begins shipping or delivery to the Subscriber.
(3) the place of supply of services considered as a service provider's registered office or domicile.
(4) the following services: 1) culture, art, education, science, sports, and similar services;
2) this article mentioned in the sixth paragraph of the goods handling and storage, as well as with transportation related services;
3) case assessment and inspection related services — place of supply is the place where they are provided.

(5) a real estate-related services (including experts, preparation and coordination of construction work, works supervision and architect firms), the place of supply is the place where the property is located.
(6) the place of supply of Transport services is the place to take the goods or passengers.
(7) if the service provider is not registered in the Republic of Latvia a person, then the following services: 1) patent, copyright, trade marks and similar rights, transfer of possession and control;
2) by advertising or public activity-related services, including advertising agents and advertising agencies;
3) attorneys, patent, tax advisor of the Executive Board, the economic activities of the host controller, translators, interpreters, experts, engineers, as well as legal, financial, technical and other advice to other firms;
4) data processing;
5) provision of information, including exchange of experience, their location is the taxable person registered office or place of residence, which is the recipient of the service, and paying tax in the budget.
(8) hiring (hiring) a product from the foreign natural or legal persons, the place of supply of services is the place where the item is used.
5. article. (1) the tax rate the tax rate is set at 18 percent of the product (including imports) delivery, service and personal values that are taxable.
(2) the tax rate 0% specifies the export deliveries, international transport and delivery of goods by export related services according to article 7 of this law.
  Chapter II exceptions and exemptions article 6. Exceptions (1) no duty shall be: 1) old people's homes;
2) for the purpose of kindergarten and nursery services;
3) catering costs repair work;
4) with the educational process directly related services to educational institutions, tuition fees also state and local art and music schools;
5) agricultural education training services to those institutions holding students ' nutrition;
6) library services;
7) tuition fees in approved private training institutions;
8) Theatre, cinema (except video), circus performances, dance koncertdarbīb, cultural institutions, museums, exhibitions, the Zoo and botanical gardens, children's visits and charitable purposes dedicated to dance, amateur art collectives and sports events;
9) medical services, medicines and medical supplies after the Ministry of welfare and the Ministry of finance approved the agreed list;
10) gold, coins and banknotes of the Bank of Latvia in delivery;
11) betting, lotteries (lottery) and other forms of gambling;
12) a funeral home and the Republic of Latvia registered religious organizations, religious rituals and other services not aimed systematically to profit;
13) insurance company provided insurance services according to the law "on insurance";
14) of the population payments for residential premises concluded a rental agreement other than payments for hotels, motels and similar institutions;
15) specialised products for babies at the Ministry of welfare and the Ministry of finance approved the agreed list;
16) scientific studies, which are carried out on the public fund, the State budget and municipal budgets or international institutions;
17) such goods and financial services: (a) the granting of credit) and controls, as well as services related to credit or other guarantee money guarantees and supervision, excluding debt recovery, b) credit services related to deposit, current account transactions, payments, transfers, debts, cheques and other payment instruments, c) means of payment and services related to means of payment, the outstanding purchase and sale except things (money, coins) which are supplied for or contain precious collection, d) securities and capital investments, as well as the services that are provided by buying and selling securities and investment capital;
18) humanitarian aid shipments and donations in accordance with the provisions of the Cabinet, but, if the goods are sold, the tax due in accordance with the procedure laid down in the law;
19) consular services;
20) teaching and scientific literature, the work of pirmizdevum oriģinālliteratūr in the Latvian language and intended for children, issued and printed in Latvia, according to the Ministry of education and Science approved list;
21) in the Republic of Latvia registered mass media;
22) in agricultural and fishery products processing and marketing of the joint society, as well as machinery, machinery and other tools in common use and maintenance company (agricultural cooperatives) services for farms that are not taxable persons;
23) real estate sales, except in the use of the real property for sale or transfer to the owner after the construction works;
24) import goods which are exempt from customs duty in accordance with the law "on the customs duties (tariffs)," Chapter 6 and 7 of the Cabinet in the order, except for the supply of goods the customs duty will apply 0% interest rate;
25) of fire protection services provided by the Interior Ministry's fire and Rescue Services Department, institutions, companies and organisations (companies) of fire protection services, volunteer firefighters and volunteers of the society of fire protection formations.
(2) a Person providing services referred to in this article (delivery of goods), it can be taxing when you register in the State revenue service.
(3) assets which are imported into the Republic of Latvia to the taxable person, on the border with tax exempt. If the imported fixed assets do not cause distortions of competition, the country, for example, due to the analog asset production in Latvia, the tax is deleted. Otherwise, the deferred tax is collected from the person who brought the assets. Delete the tax and collection of the order is determined by the Cabinet of Ministers regulations. If the taxable person carries out deliveries of goods and services that are not taxed under the first paragraph of this article, the tax can only be deleted on the part of the tax corresponding to the fifth subparagraph of article 10 defined in ratio.
7. article. 0 percent rate of tax applying to exports and international transport (1) tax 0 interest rate applies: 1) to the supply of goods outside the borders of the Republic of Latvia;
2) services related to those referred to in point 1 of part supply of goods;
3) services that are not provided in the hinterland;
4) supplies of goods and services related to the supply and maintenance of all vessels that (a)) on international lines, b) use emergency and rescue or assistance at sea;
5) this part of the ship referred to in paragraph 4, the supply, conversion, repair, maintenance, hire and for hiring and related supplies and services;
6) aircraft delivery, conversion, repair, maintenance, hire and letting international lines and related supplies and services;
7) this part 1 — 6. vehicles referred to in points aģentēšan and with cargo service and related services;
8) on a parity basis — supplies of goods and services provided to foreign diplomatic and consular representatives in Latvia, their diplomatic and consular agents and their minors family members who live with them, the Cabinet of Ministers.
(2) If an intermediary representing Latvia in the natural or legal persons, ensure the supply of goods outside the borders of the Republic of Latvia, the supply of goods to this intermediary tax applies 0 interest rate of the Cabinet of Ministers.
(3) in order to receive input tax paid, the State revenue service registered taxable person shall produce documentary proof that have been referred to in the first paragraph of the supply of goods or services.
(4) the tax paid by natural persons for the goods (if their value exceeds 100 lats) that are exported from inland, released Cabinet.
(5) if the taxable person supplied the goods or provided the services in accordance with the first paragraph of this article, cannot show proof of export, it pays tax on the goods supplied or the services provided pursuant to article 5, first paragraph the stated rate.
Chapter III tax calculation and payment arrangements article 8. Value added tax invoice (1) the supply of goods has taken place when the goods are shipped and are charged a value added tax invoice (tax invoice) or the consideration for the supply is received before the goods are dispatched.
(2) service delivery has taken place, if the service is provided to the client and is used in the tax bill or the consideration for the service is received before the service is provided.
(3) Pašpatēriņš has occurred, if the product is transferred or otherwise become available or the services are performed for saņēmējperson. Taxable person obliged to discharge in this case tax bill and make a personal inventory accounting.

(4) the Taxable person the tax invoice in accordance with the sixth subparagraph of this article, be served on any taxable supply of goods or services not later than seven days from the moment of the transaction.
(5) the tax bill may be issued only for the taxable person. Any value added tax amount paid under the tax bill, which the vendor is not entitled to issue, the person who issued the invoice, the amount to be paid into the State budget.
(6) a tax invoice must indicate: 1) consignor's or service provider's name (natural person: name, surname), domicile or place of residence and of value added tax taxable person code;
2 the recipient of goods or services) name (natural person: name, surname), registered office or residence in Latvia registered the company (the company) registration number (physical person – person's code);
3 the name and quantity of the goods), or the nature and extent of the services;
4) price and value or remuneration for services rendered;
5) calculated tax;
6) the supply of goods or the provision of the service date.
(7) on the tax bill can also be used in marketing the company received in the purchase receipt, if it provides the information referred to in the sixth paragraph. If this information is not complete, the cheque must be accompanied by special sample voucher, which provides the missing information.
9. article. Tax tax period (1) the tax period is one calendar month.
(2) If, in the year of the pirmstaksācij taxable persons does not exceed 1800 tax paid late, the deadline for tax returns and the tax period following the application of the person liable may be three months or six months.
(3) upon application by the taxable person due to the seasonality of economic activity the State revenue service may provide other taxation period.
(4) the tax period of a calendar year, the amount consists of the tax year.
10. article. Deduction of input tax and the tax payable to budget calculation (1) only the State revenue service registered taxable person has the right to tax returns to the budget a tax deduction in the following amounts of input tax: 1) in accordance with article 8 of this law, drawn up in the tax invoice separately reported the amount of tax on goods and services by the taxable person domestically purchased from another person his taxable transactions. To be able to make these deductions must be paid tax bill;
2) the amount of taxes paid on imported goods domestically his taxable transactions. To be able to make these deductions must be formal payment document for the import of goods, which as a Subscriber or the importer is indicated in the taxable person.
(2) in respect of goods (also imported goods) and services that are used in article 6 of this law that tax exempt transaction, as well as for any transactions by persons that are not registered as a taxable person, the VAT deduction may not be made.
(3) a Taxable person must provide the calculated and the amount of tax paid accounting records.
(4) If a taxable person has acquired goods domestically or received services from a non-taxable person, the VAT deductions on such goods and services shall not be made except in the seventh part of this article in cases referred.
(5) if the taxable person uses only part of the goods delivered and it services provided to carry out taxable transactions, then on this part can make pretax deductions. This part (ratio) is determined by the following evaluation: the meter — taxable amount without tax transactions (including export transactions), which is taxable, and the seventh part of this article in cases referred to;
denominator: total transaction values amount without tax (included in the numerator transactions and transactions that are not taxed).
(6) the legal and natural persons, which produces agricultural output and is not registered in the State revenue service as taxable person (referred to in this article on the seventh, eighth and ninth part, farms), the transfer of the production of agricultural products processing enterprises or cooperatives, if they are taxable, and the presentation of the State revenue service inquiries receive a processing undertaking pay, including compensation for tax paid when you buy goods and receive services for production purposes in the seventh part of this article in particular. This part also apply to agricultural cooperatives, if they: 1) is not taxable persons;
2) received compensation paid to farms.
(7) in the sixth paragraph of this article, the compensation referred to in the farms is down 15 percent from the value of production. Agricultural products processing companies or cooperative societies in your tax declaration for a given tax period the State budget in the amount of tax payable may be reduced on this part of the compensation fixed in size. This company is responsible for the farm records and to provide information regarding the production of the State revenue service authority, which provided this article to the ninth part inquiries.
(8) If agricultural produce processing company or cooperative bought produce from the farms on the value (excluding tax refunds), which is higher or lower than the value of the delivery of the purchased products from analog to taxable persons, it loses the right to the seventh of this article in part relief.
(9) the farms production sale of the State revenue service shall issue a certificate that the holding concerned is of value added tax taxable person entitled in the seventh part of this article, to the extent set out in the compensation for tax paid when purchasing goods in the production process for the farm. Cognitive receipt must be submitted to the national farm revenue farm registration certificate or the municipal certificate of land ownership or use rights.
11. article. Tax Declaration (1) a registered taxable person must submit to the State revenue service tax return with the tax calculation for the previous tax period, within 15 days after the end of the tax period.
(2) the State revenue service may require the taxable person's tax return also met another time, if deemed necessary, but not more frequently than quarterly.
(3) a registered taxable person to the current year's April 1 should be submitted to the State revenue service tax return for the year of pirmstaksācij, which form in accordance with this law approved by the Cabinet of Ministers.
12. article. Tax payment procedure (1) the taxable person paid tax to the State budget before tax declaration in accordance with article 11 of this law.
(2) a tax upon goods domestically, in charge of the customs legislation.
(3) selling imported goods domestically (treated or untreated), for which a tax at the border customs office is not paid, the taxable person shall pay the tax in accordance with the procedure laid down in this law.
(4) the importation, declarant Customs cargo declaration presented in a separate line in the tax rate and the amount.
(5) If the importation of the goods, they are exempt from tax pursuant to article 6 of this law, and if the customs authority shall check that the tax is not collected, the importer is not entitled to the input tax deduction for that amount.
(6) if the tax return for the tax period is submitted in a timely manner, is properly designed and indicated that the pay pretax for the period is greater than the tax payable to the budget for that period, the difference between the tax attributable to the pēctaksācij period.
(7) the State revenue service tax overpayment (the difference between the amount of tax due and paid input tax) at the reasoned request of a taxable person established in the refund within 15 days following the submission of the request. The repayment can be made only if it is received and checked tax return for the previous tax period and not a tax debt.
(8) the tax is recovered, defined the end of the tax period.
Chapter IV special provisions article 13. Tourism (travel) company and agency services (1) the tax is applied in tourism (travel) company and agency services, travel (travel) firm or agency acting in his own name and used another person to supply of goods and services for the provision of tourism services.
(2) all the measures which domestic tourism (travel) firm or agency shall make due to travel, are treated as a single service, firm or agency provided by the traveller. This service is taxable.

(3) the taxable value for tourism (travel) company or agency services is the difference between the full amount (excluding tax) paid by the recipient of the service (the traveler), and the actual costs for the supply of goods and services in tourism (travel) firms or agencies provide other taxable person.
(4) Travel (travel) a firm or agency services are governed by tax 0% interest rate in accordance with article 7 of this law if: 1) tourism (travel) related goods delivery is carried out and the services are provided outside the borders of the Republic of Latvia;
2) tourism (travel) related aircraft and sea vessels to transport crossing the border;
3) to tourism (travel) related aircraft and sea vessels to transport is just outside the boundaries of the Republic of Latvia.
(5) if the tour (tour) a firm or agency services are provided both domestically and outside the borders of the Republic of Latvia, with a 0% interest rate is subject only to its services related to transactions outside the borders of the Republic of Latvia.
14. article. Or part of a business transfer, company liquidation (1) If the sale of the individual, national or local company, its new owner for the continuation of economic activities takes over all rights and obligations of the company, its property, also made for sale goods, raw materials and materials, is not subject to tax.
(2) upon transfer of the public or another company lease-purchase, rent on real property, as well as the redemption fee for fixed assets with business tax are exempt.
(3) if the company is liquidated, its performance has not been a taxable person, then selling or transferring property, this company tax has been paid.
(4) if the company is liquidated, its performance was during the taxable person (or that was supposed to be a taxable person), then on supplied and undifferentiated goods tax to be calculated and paid in accordance with this Act. In these cases, the liquidator or liquidators of the company must be submitted to the national revenue, by its location in the value added tax return. From the budget payable tax amounts the company is entitled to deduct the turnover tax part 1 1993 until November paid for the purchase of fixed assets net book value. This part does not apply to assets that are purchased, not paying off the turnover tax.
Chapter v final provisions article 15. Liability for violations of this law (1) the taxable person liable for the tax to the proper and timely payment in accordance with the provisions laid down in the legislation of the Republic of Latvia.
(2) if the taxable value is hidden or if the tax amount is calculated and the tax declaration is not presented properly, apply sanctions in accordance with the law on taxes and duties ".
(3) If a taxable person is not registered under this law, the requirements of article 3, but carried out taxable transactions, it is subject to value added tax and interest payments from the moment it had to be registered in accordance with the procedure laid down in this Act.
(4) If a taxable person is not lawfully issued tax bill receives a value added tax, which it is not entitled to receive, or with the intent of this law other illegal actions, then illegally receive tax amounts to the State revenue service has the right to order recovery of unchallenged State budget and levying fines of 200 percent of illegal tax amounts received.
16. article. Dispute procedures disputes that arise concerning the calculation of the tax, in accordance with the law.
Transitional provisions 1. With the entry into force of this law shall lapse: 1) the law on turnover tax (the Republic of Latvia Supreme Council and Government Informant, 1992, 2/3, 10,/31.nr. 29, 1; 1993/2, 20/21., 24./25.nr.; The Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1993, nr. 31; 1994, 2, 12 nr.) and the Cabinet of Ministers, Ministry of Finance and national revenue rules, instructions and correspondence that is governed by law "for the turnover tax";
2) Republic of Latvia Supreme Council of 19 December 1991, decision "on the law of the Republic of Latvia" on turnover tax "date of order" (the Republic of Latvia Supreme Council and Government Informant, 1992, no. 2);
3) Republic of Latvia Supreme Council on 12 February 1992 decision "on the law of the Republic of Latvia" on amendments and additions to the Republic of Latvia on 18 December 1991 the law "for the turnover tax," "date of order" (the Republic of Latvia Supreme Council and Government Informant, 1992, no. 10);
4) of the Republic of Latvia Supreme Council of 1 June 1993 decision "on the law of the Republic of Latvia" on additions to the Republic of Latvia on 18 December 1991 the law "for the turnover tax," "date of order" (the Republic of Latvia Supreme Council and Government Informant, 1993, nr. 24);
5) of the Republic of Latvia Supreme Council of 1 June 1993 decision "on the law of the Republic of Latvia" on amendments and additions to the Republic of Latvia on 18 December 1991 the law "on turnover tax" entry into force "(the Republic of Latvia Supreme Council and Government Informant, 1993, nr. 24);
6) Republic of Latvia Higher Council Presidium on 10 July 1992 decision "for the Republic of Latvia on 18 December 1991 the law" on turnover tax "used the term" tour service "explanation";
7) Republic of Latvia Supreme Council Presidium on 12 November 1992 the decision "Of the Republic of Latvia on 18 December 1991 the law" on turnover tax "used the term" paid services "and the explanation of budget organizations and institutions" (the Republic of Latvia Supreme Council and Government Informant, 1992, no. 46).
2. With the entry into force of this law the State revenue service registered turnover tax comparable to value added tax-taxable persons.
3. The provisions of this law shall be governed by the Cabinet of Ministers regulations, may not be applied before the Cabinet of Ministers regulations came into force.
4. taxable turnover, which is entitled not to register as taxable persons in accordance with article 3 of this law until May 1, 1995, may announce his withdrawal from the future.
The law shall enter into force on 1 May 1995.
The Parliament adopted the law of 9 March 1995.
The President g. Ulmanis in Riga, 1995 March 30.