Domestic reverse charge on IT equipment in Latvian VAT law
From 1 April 2016 Latvia will introduce domestic reverse charge on IT equipment such as laptops, mobile phones and computer chips.
Many countries have introduced this reverse charge in the last two years. Denmark, Germany, Spain, Romania, Czech Republic or Poland have all implemented the domestic reverse charge on IT equipment.
In addition, the following VAT changes were introduced on 1 January 2016:
- Cash accounting has been extended to the management services of residential properties with an annual turnover between 100,000€ and 2,000,000€.
- Deduction of input VAT on passenger cars (up to 9 sits) decreased from 80% to 50%.
- The right to deduct VAT on bad debts has been revised.