- Objective: Extend Latvia’s special VAT measure limiting input VAT deduction on passenger cars not wholly used for business.
- Current Measure: Limits VAT deduction to 50% and exempts private use from being treated as a supply of services.
- Justification: Simplifies VAT collection, reduces administrative burden, and prevents tax evasion.
- Duration: Proposed extension until 31 December 2027, with a review report due by 31 March 2027.
- Consistency: Similar measures have been granted to other EU Member States.
Source ec.europa.eu
Latest Posts in "European Union"
- EU Council Approves Customs Duty Cuts on Ukrainian Agri-Food Products
- EC Report: Three EU Countries Account for 75% of VAT Rate Deviations
- EU Report Reveals Major Disparities in VAT Rate Exception Applications
- Roadtrip through ECJ Cases – Focus on Place of Supply of Intra-Community Acquisitions – ”Triangulation” (Art. 42)
- Briefing document & Podcast: C-536/08 (X) and C-539/08 (Facet Trading) – No deduction on Intra-EU acquisitions taxed at the MS of identification of the purchaser, instead of the destination
