The biweekly “Tax Viewpoint” for 8–22 September 2026, published on 28 September 2026 by Herta Cēsniece, delivers a concise executive summary of the most impactful tax legal developments in Latvia during that period. The report covers newly published regulations, State Revenue Service (VID) methodological materials, significant court judgments, and upcoming parliamentary initiatives. It is designed for tax directors, CFOs, and compliance officers needing timely intelligence to adjust tax positions and filing strategies.
Key Takeaways
- Regulatory Updates: The period saw the adoption of Cabinet Regulations detailing the application of the reduced 12% VAT rate for food products, including specific CN codes and conditions for mixed supplies. Amendments to the Electricity Market Law affecting excise duty exemptions for renewable energy producers were also finalized.
- Judicial Decisions: The Supreme Court ruled on the deductibility of interest expenses under ThinCap rules for loans from related parties in low-tax jurisdictions, confirming the burden of proof lies with the taxpayer. A Regional Court decision clarified the VAT treatment of chain transactions involving triangular intra-EU supplies, reinforcing the requirement for proper transport documentation.
- Administrative Practice: VID issued a new guideline on the application of the participation exemption for dividends received from EU subsidiaries, emphasizing substance requirements. The Tax Board also updated its risk indicators for transfer pricing audits, adding markers for digital service royalties and intra-group financial transactions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement