VAT exempt purchases in other EU countries

23.03.2016. 10:49

The regulation of the Cabinet of Ministers No 908 of 18 December 2012 „Procedures for the Application of Zero Rate of Value Added Tax to the Supply of Goods and Services Provided to Diplomatic and Consular Missions, International Organisations, European Union Institutions and the North Atlantic Treaty Organisation (NATO), and Procedures for the Reimbursement of Excise Duty for Excisable Goods Purchased in the Republic of Latvia” provides the procedure for approving in the Republic of Latvia excise duty and value added tax exemption certificates duly prepared in accordance with the requirements of European Commission Regulation (EC) No 282/2011 of 15 March 2011 on the Excise Duty Exemption Certificate as well as the procedure for granting the right to use the Certificate without approval.

A mission, international organisation or a diplomatic agent accredited to Latvia may buy goods and/or services in another EU – country exempt from VAT and Excise duty using the exemption form ”VAT and excise duty exemption certificate (Directive 2006/112/EC)” (Annex II).

A buyer who requires VAT-exempt invoicing must complete the relevant EC forms and submit them to the State Protocol for confirmation.

The officially recognized languages in the Republic of Latvia for completing the Certificate application form shall be Latvian or English. It should be noted that the name of the applicant must be clearly marked on the form. The form must be signed and stamped. The State Protocol confirms the duty-free imports and returns 3 pages of the application to the mission.

The Certificate duly approved shall grant the privileged person the right to:

  • purchase, free of excise duty, the excise goods indicated in the Certificate in another member state of the European Union;
  • purchase, free of excise duty, the excise goods indicated in the Certificate from an excise goods warehouse within the territory of the Republic of Latvia;
  • purchase, free of value added tax, the goods indicated in the Certificate and receive services in another member state of the European Union.

In accordance with the approved Certificate, a mission, international organization or institution of the European Community accredited to Latvia, which is building real estate in the territory of the Republic of Latvia for official use, has the right to purchase inland, for the construction of this real estate, goods indicated in the Certificate and receive services with 0 per cent value added tax rate applied (including supply of construction materials, project preparation and construction services).

In the event a mission, international organization or institution of the European Community accredited to Latvia builds real estate for official use, the Ministry of Foreign Affairs may grant the person the right to use the Certificate without approval for the period of execution of the real estate construction project.

In the event the privileged person purchases goods or receives services for official use, the State Protocol may grant the applicant the right to use the Certificate without approval for a period of time not exceeding 36 months. If a decision is made to grant the applicant the rights to use the Certificate without approval, the State Protocol will advise in writing the Applicant, indicating the period of time for which such rights are granted and the State Revenue Service, indicating the person who is granted the right to use the Certificate without approval, the period of time for which the right is granted and the date and number of the decision granting the right to use the Certificate without approval. In the event a decision is made not to grant the applicant the right to use the Certificate without approval,the State Protocol shall within fifteen working days advice the Applicant in writing, indicating the reasons for refusal.

Legislation:

  1. Regulation of the Cabinet of Ministers No 908 of 18 December 2012 „Procedures for the Application of Zero Rate of Value Added Tax to the Supply of Goods and Services Provided to Diplomatic and Consular Missions, International Organisations, European Union Institutions and the North Atlantic Treaty Organisation (NATO), and Procedures for the Reimbursement of Excise Duty for Excisable Goods Purchased in the Republic of Latvia”;
  2. European Community certificate VAT and excise duty exemption (Directive 2006/112/EC).