Restrictions

23.03.2016. 10:37

VAT and excise tax shall be refunded to the diplomatic representations in the Republic of Latvia, provided that the amount of transaction indicated in each tax invoice, including VAT, exceeds EURO 177.86.

This restriction shall not be applicable to charges for telecommunication services, rent/ lease of premises, electricity, gas, heating supply, centralized water supply, sewerage services and waste collection and disposal services, security services, as well as fuel purchased for vehicles.

The excise tax on purchase of fuel shall be refunded for a maximum of 250 liters a month per each passenger car registered in the Republic of Latvia in the name of the respective diplomatic representation and the privileged person in the Republic of Latvia.

VAT and excise tax shall be refunded to privileged persons, provided that the amount of transaction indicated in each tax invoice, including VAT, exceeds EURO 49.80, but the restriction shall not be imposed on charges for telecommunication services and fuel purchased for vehicles. Reimbursement is granted only for purchases of new articles. No reimbursement is given for antiquities, works of art as well as second-hand items purchased in Latvia.

Goods that are subject to the value added tax or excise tax refund may not be used for commercial purposes.

Value added tax refunded under the procedure specified in the Regulation No 908 shall be paid into the state budget or this sum shall be deducted from the sum of the refundable tax calculated in accordance with the subsequent applications, if:

  • a representation in the Republic of Latvia, within one year from the purchase date, sells or otherwise alienates for the benefit of another person or institution the goods (except for cars), the value of which (excluding the value added tax) exceeds EURO 1422.87 per unit
  • a privileged person, within one year from the purchase date, sells or otherwise alienates for the benefit of another person or institution not mentioned in clause 1.1. of this Regulation the goods (except for cars), the value of which (VAT exclusive) exceeds EURO 711.44 per unit
  • a representation in the Republic of Latvia, within three years following the date of purchase and registration of a car, sells or otherwise alienates this car for the benefit of another person or institution
  • a privileged person leaving the Republic of Latvia sells or otherwise alienates for the benefit of another person or institution a car within three years following the purchase and registration of such car in the Republic of Latvia, 1/36 of the refunded tax for each month remaining until the end of the period of three years shall be paid into the state budget

Pursuant to the procedure for refund of VAT and excise tax, applicable to representations or privileged persons of the Republic of Latvia in the respective foreign country, the representations and privileged persons of this foreign country at the recommendation of the State Protocol of the Ministry of Foreign Affairs may be eligible to refund of VAT and excise tax without the above mentioned restrictions.

In order to enable the application of a special procedure for refund of VAT and excise tax, diplomatic missions or consular posts of the respective country shall submit to the State Protocol an application describing the procedure for refund of VAT or excise tax to representations or privileged persons of the Republic of Latvia in the respective country, enclosing with their application the suggestions on additional easements for the refund of the paid VAT or excise tax to be applied in Latvia.

The State Protocol shall review the application, and not later than within 30 days as of the date ofthe receipt of the application shall make a decision on the special procedure for refund of VAT to the respective representation and privileged persons. The State Protocol of the Ministry of Foreign Affairs shall communicate the taken decision in writing to the applicant and the territorial institution of the State Revenue Service specifying the future procedure for refund of the value added tax or excise tax.