Registered VAT payers not only charge VAT but also have the right to reclaim input VAT.

‍

Who is eligible for VAT refund

‍

• Legal entities registered as VAT payers.
• Self-employed persons included in the VAT register.
• Foreign companies operating in Latvia.
• EU-based companies conducting business in Latvia.

‍

Conditions for refund

‍

• Expenses must be related to economic activity.
• Properly issued invoices with VAT must be provided.
• Goods and services must be used for taxable operations.
• The declaration must be submitted on time via EDS (Electronic Declaration System).

‍

Deadlines

‍

VID reviews VAT refund claims within 30 days after submission. In some cases, the process can take up to 3 months if additional verification is required.

‍

Refund process

‍

1. Collect documents (invoices, contracts, bank statements).
2. Fill in the VAT declaration in the EDS system.
3. Indicate the input VAT amount for refund.
4. Submit the declaration to VID.
5. Receive the refund to the company’s bank account after approval.

‍

Reasons for refusal

‍

• Mistakes in invoices.
• Expenses not related to business activity.
• Late submission of the declaration.
• Suspicion of fictitious transactions.

‍

Practical tips

‍

• Use accounting software for invoice verification.
• Keep documents for at least 5 years.
• Double-check invoice details.
• Plan VAT refunds as part of cash flow management.

‍

VAT refund in Latvia helps businesses reduce tax burdens and optimize financial resources. Accurate documentation and timely submission ensure smooth processing by the State Revenue Service.