Latvia requires tax payers to submit domestic listings in support of their monthly VAT return. Note: small tax payers, below €40,000 sales per annum, need only submit quarterly reporting.
These national recapitulative statements, or ‘control statements’ provide detailed transactional information on sales and purchases between resident VAT registered businesses. The aim is to give the tax office the ability to match VAT treatment on each transaction with the matching reporting of the Latvian customer or vendor. They are the domestic equivalent of the EC Sales Listing, which covers cross border transactions.
The Latvian control statement is completed via form ‘Attachment 2, PVN 1’. This is due by the 20th of the month following the reporting period. It must include details of all sales and purchases with local VAT-registered businesses. Each reporting transaction must include the counter-party name and VAT number, as well as the price and VAT calculation. There is a transaction threshold of €1,420. Any transaction below this amount may be excluded.
