WHEN YOU CAN AVOID PAYING CORPORATE LIGHT VEHICLE TAX

15 simple reminders about Corporate Light Vehicle Tax, when you can avoid paying it:
#1
for operational vehicles (or a vehicle registered as an operational vehicle)
#2
for vehicles owned or held by a vehicle manufacturer’s authorized representative, which are used as demonstration vehicles and which the merchant or foreign merchant’s branch has declared in the state register of drivers (register)
#3
for vehicles owned or held for short-term (up to one year) rental purposes, which the merchant or foreign merchant’s branch has declared in the register, if vehicle rental services, together with vehicle sales, constitute no less than 90% of the total turnover for the merchant or foreign merchant’s branch
#4
for a vehicle that the taxpayer uses solely and exclusively for their business activities
#5
a taxpayer, if they cultivate land used for agriculture that is owned, permanently used, or leased, and as of January 1 of the current year, they are approved to receive a single area payment from the Rural Support Service, subject to the following conditions: land used for agricultural purposes and has been approved on January 1st of the current year for receiving the single area payment from the Rural Support Service, subject to the following conditions:
if such taxpayer owns or holds one light vehicle, the tax for this one vehicle is not paid if the taxpayer’s income from agricultural production in the last submitted annual company report or the last submitted annual income declaration is at least 5,000 euros (excluding state and European Union (EU) support received for agriculture and rural development),
if such taxpayer owns or holds several light vehicles, the tax for one of these vehicles is not paid if the taxpayer’s income from agricultural production in the last submitted annual company report or the last submitted annual income declaration is at least 5,000 euros (excluding state and EU support received for agriculture and rural development), and the tax for each subsequent vehicle is not paid for every 70,000 euros of income from agricultural production in the last submitted annual company report or the last submitted annual income declaration (excluding state and EU support received for agriculture and rural development)
#6
for the period when the vehicle was not at the taxpayer’s disposal as a result of a criminal offense, as evidenced by documents issued by the process manager or a competent foreign authority, or information in the vehicle register
#7
for the period when the vehicle was seized in cases provided for by regulatory acts, and its use in road traffic was encumbered and its use in road traffic is prohibited
#8
for the period when the vehicle was deregistered for alienation in Latvia or export from Latvia, or when the vehicle’s registration was temporarily suspended by surrendering the license plates
#9
for a vehicle that has been registered as a historic vehicle
The exemption does not apply to a vehicle that has the remark “Antique vehicle” in the “Notes” section of its registration certificate. Meanwhile, historic vehicles are recognized as cars that are at least 30 years old, carefully preserved, and not used as daily transportation.
#10
for a light vehicle that is a sports vehicle or is registered as a sports vehicle (the registration certificate has the remark “Sports” in the “Notes” section)
#11
for the period when a vehicle registered in Latvia was exported from Latvia and registered abroad.
The fact that the vehicle was registered abroad is confirmed by information in the relevant foreign register (if the CSDD has automated access to that register) or by a document issued by the relevant foreign vehicle register
#12
for a vehicle that the vehicle owner’s insolvency administrator deregisters for alienation in Latvia or export from Latvia, or a vehicle whose registration is temporarily suspended by surrendering the license plates
#13
for a vehicle used based on a lease agreement concluded with a natural person, and for which personal income tax is withheld from this natural person when paying the lease fee for the vehicle personal income tax is withheld in the manner prescribed by the law “On Personal Income Tax” (Personal Income Tax Law)
#14
for a vehicle used based on a lease agreement concluded with a natural person who is registered with the SRS as an economic activity performer and independently calculates and pays personal income tax from the vehicle lease fee in the manner prescribed by the Personal Income Tax Law
#15
The taxpayer has the right to change the tax application procedure once per taxation period – by declaring an exemption or that they will no longer apply the tax exemption
P.S. That’s all about car tax. But next time, you will learn  how to prevent a debt from becoming unrecoverable and an object of corporate income tax when working with buyers.

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