The Saeima Commission supports the easier VAT application for micro -enterprises / Day

This will be a small but significant relief for small businesses operating in the micro -enterprise tax regime, convinced by Anda Caksha (JV), Chairman of the Budget and Finance (Tax) Commission.

According to the intended changes, micro -enterprises will be able to use the special procedure for registration of the State Revenue Service as Value Added Tax (VAT) payers to offer their services to foreign platforms.

Currently, in order to receive the service abroad, the entrepreneur must be registered as a VAT payer in the general order. Such arrangements determine more complex tax accounting and accounting requirements, and the micro -enterprise loses its status, the authors of the amendments pointed out in the annotation.

In December last year, the Saeima adopted amendments to the VAT Act, stipulating that the relief tax payment procedure may be used exclusively by companies receiving services or purchasing goods in the European Union, including their services in foreign platforms, such as guest accommodation.

Micro -enterprises are expected to be used for easier VAT payment arrangements as of July 1 this year.

The Committee on Budgets has requested the amendments to the VAT law on the agenda of the Saeima sitting on 29 May and to establish urgency.