Export of goods
In Latvian: Preču eksports
An export of goods (preču eksports) is a supply of goods from the European Union to a third country or third territory, such as Norway, the United Kingdom or the United States. Exports are zero-rated for VAT when customs documents prove the goods left the EU.
This is a 0% rate, not an exemption, so the exporter keeps the right to deduct input VAT on goods and services used for the export. Services directly linked to exporting goods, such as transporting the exported goods, are also zero-rated.
The basis for 0% is the customs procedure: the goods are declared for export and customs confirms their exit. If the export does not happen, the transaction reported in the VAT return must be corrected.
An export is not the same as an intra-Community supply. Goods sent to another EU country are supplied, not exported, and there the 0% conditions are the buyer’s VAT number and transport documents rather than a customs declaration. Exports do not go into the PVN 2 report.
Example
SIA “Ozols” sells furniture worth EUR 8,000 to a shop in Norway. The goods are declared for export and leave the EU. The invoice is zero-rated citing Section 43(1) of the VAT Law, and the buyer pays import taxes in Norway.
How Fakts handles it
Fakts lets you give a 0% line the reason “export outside the EU”, and prints “Export outside the EU, VAT 0%” under the invoice table.
Legal basis
- Value Added Tax Law, Section 43(1) likumi.lv
- Value Added Tax Law, Section 46 likumi.lv
- Value Added Tax Law, Section 1, Clause 17 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.