- SME Scheme Overview: The SME scheme in Latvia allows small enterprises to benefit from simplified VAT obligations, exempting them from various requirements such as VAT registration and periodic returns, with a national annual threshold set at 50,000 EUR.
- Exclusions and Compliance: Certain transactions, including occasional supplies and exempt cross-border transport, are excluded from the SME scheme. Non-compliance may lead to the loss of simplified VAT obligations and the requirement to register for VAT and submit returns.
- Quarantine and Appeals: Small enterprises excluded from the SME scheme face a quarantine period during which they cannot reapply for the exemption. Appeals regarding the SME scheme must be directed to the relevant Member State of establishment or exemption, depending on the issue at hand.
Source ec.europa.eu
