I Missed the VAT Return Deadline – A Minor Issue or a Major Problem!?

Entrepreneurs often do not consider when they might be removed from the SRS Value Added Tax (VAT) payer register, and it frequently comes as an unexpected surprise. To prevent this, we will provide an insight into the key aspects of this issue.

Removal from the VAT payer register primarily occurs in the following cases:

At the taxpayer’s own initiative, in cases where:

• the taxpayer (excluding a VAT group) submits a justified application to the SRS for removal from the SRS VAT payer register;
• the taxpayer, which is a state or local government institution or a municipality, submits a justified application to the SRS for removal from the SRS VAT payer register, stating that it does not plan to receive construction services or perform taxable transactions in the future;
• a VAT group submits an application to the SRS for removal from the SRS VAT payer register and 12 calendar months have passed since the date of registration of the VAT group;

Removal from the VAT payer register can also occur at the initiative of the SRS, and these are the most common cases:

– the economic activity of a registered taxpayer has been suspended in accordance with the Republic of Latvia Law “On Taxes and Duties”;

– at least one of the following circumstances occurs during the taxpayer’s operation:

1. a) a tax return has not been submitted within 30 days after the tax return submission deadline specified in this Law,
2. b) false information has been provided in the tax return,
3. c) the requested information (documents certifying income and expenses of economic activity, accounting records, as well as other information describing activities that affected or affect the calculation and payment of tax) has not been submitted within the term specified in a written request from the State Revenue Service,
4. d) a registered taxpayer has provided unjustified or false information regarding the material, technical, and financial capabilities to perform economic activity;

– the taxpayer (excluding a taxpayer from another Member State and a taxpayer from a third country or third territory) is not reachable at the legal address or the declared place of residence, or this address does not actually exist;

If you require daily support in full-cycle financial accounting and consulting, or if you have missed these or other accounting-related matters due to a busy schedule—and you need assistance with correct communication with the SRS—please feel free to contact us right here on our website to receive a competitive offer for starting a partnership with us!