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We are publishing a series of guides on how each EU member state is implementing DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on the Latvia’s implementation of DAC6.
VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6. This blog was originally published in July 2020 and was updated in February 2021.
How has Latvia implemented DAC6?
Legislation Details
Latvia’s tax authority, Valsts ienemumu dienests (State revenue service of the Republic of Latvia), published DAC6 legislation, called Noteikumi par automātisko informācijas apmaiņu par ziņojamām pārrobežu shēmām (Regulations of the Cabinet of Ministers No. 210, Rules on the automatic exchange of information on notifiable cross-border schemes, April 14, 2020), and Grozījumi likumā “Par nodokļiem un nodevām” (Amendments to the Law on Taxes and Duties, 05.03.2020), on 14 April 2020.
Taxes covered
Latvia’s legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.
The scope of taxes covered by the Latvian law includes all taxes, except VAT, custom duties, excise duties and compulsory social security contributions.
Legal Professional Privilege
The Latvian legislation transposing DAC6 exempts from the reporting obligation due to an LPP right only the Latvian Sworn Attorneys at Law. The initial draft did not include an LPP exemption.
Reporting
It is expected that Latvia will require reporting to be made by intermediaries and relevant taxpayers using an electronic/XML file via the web portal of the Latvian tax authorities.
The information should be provided in the official language (i.e. Latvian). Other languages may be used but the State Revenue Service is then entitled to request translation.
Penalties
The Latvian Tax Administration has the right to impose a fine of up to EUR 3,200 if the relevant taxpayer or intermediary has not complied with the reporting of cross-border arrangements requirements within the legal deadline or in circumstances where the intermediary or relevant taxpayer has failed to comply with the prescribed preparation and filing procedure.
DAC6 resource page
VinciWorks regularly publishes helpful guides, on-demand webinars and articles related to DAC6. These resources are regularly updated as HMRC and other authoritative bodies update their guidance on DAC6 implementation. We will also be adding all of our DAC6 country profiles to the resource page.
You can view all of our DAC6 compliance resources by clicking on the button below.
