EC extends Latvia’s special VAT measure for timber under reverse charge mechanism until 2026.

• The European Commission adopted a proposed decision to extend Latvia’s authorization for a special VAT measure
• The measure allows Latvia to designate recipients of timber and related services as the party liable for VAT under the reverse charge mechanism
• Reasons for the proposal include the economic importance of the timber market and susceptibility to VAT fraud
• The reverse charge mechanism is intended to simplify VAT collection procedures and prevent fraud or avoidance
• The proposed decision extends Latvia’s authorization to Dec. 31, 2026, from Dec. 31, 2024

Source: news.bloombergtax.com

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