Latvia VAT registration threshold extension
- Jul 13, 2020 | Richard Asquith
Latvia is applying for an extension to its €40,000 annual VAT registration threshold until 31 December 2024.
Under Article 287(10) of the VAT Directive, Latvia may exempt from VAT taxable persons whose annual turnover is no higher than the equivalent in national currency of EUR 17 200 at the conversion rate on the day of its accession. By virtue of Council Implementing Decision 2010/584/EU2 Latvia was authorised to apply a higher threshold and thus to exempt from VAT taxable persons with an annual turnover not exceeding EUR 50 000.
This measure was extended by Council Implementing Decision 2014/796/EU3 until 31 December 2017. By Council Implementing Decision (EU) 2017/24084, Latvia was authorised to extend the measure until 31 December 2020 and, at the same time, to decrease the exemption threshold from €50,000 to €40,000.
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