Latvia VAT 2014 changes

There have been a number of changes to the Latvian VAT code which will come into effect in January 2014.  This includes:

• For advertising costs, the low-value gift thresholds will not apply
• The requirement to appoint a VAT fiscal representative by non-resident taxable persons is withdrawn
• Services provided between members of cost savings agreements will be exempt from VAT
• Losses which may be deducted from any VAT liability will now be based on the same principles as the corporation tax rules.
• For the purposes of determining the proportion of VAT supplies which are liable to VAT or exempt, rounded-up percentages should be used.