Fiscal representative
In Latvian: Fiskālais pārstāvis
A fiscal representative (fiskālais pārstāvis) is a VAT payer registered in Latvia that, under a written contract, pays VAT to the state and represents a taxable person from another EU country or a third country in specific transactions, mainly imports and EU acquisitions of goods intended for onward supply or export.
The transactions are listed in Section 1, Clause 5 of the VAT Law: imports with onward supply to a VAT payer in another EU country or in Latvia, receipt or acquisition of goods for onward export from a customs or excise warehouse, and acquisitions in the EU for onward supply to another member state.
VID registers as a fiscal representative only a business that has operated in Latvia for more than two years, has no tax debts and provides security for possible tax debt: a deposit of EUR 14,200 on the registration date, or a bank or insurer guarantee of at least EUR 285,000. The fiscal representative receives a separate registration number.
A fiscal representative always files monthly and also files a PVN 6 report on its transactions. Invoices on which it pays the VAT show its name, address and registration number.
Example
A Norwegian producer imports fish products into Latvia and immediately sells them to a company in Germany. A Riga logistics company registered as its fiscal representative acts for it: it applies 0% to the import because the goods are sent to Germany within 30 days, and reports the transactions in its VAT return and PVN 6 report.
Legal basis
- Value Added Tax Law, Section 1, Clause 5 likumi.lv
- Value Added Tax Law, Section 65 likumi.lv
- Value Added Tax Law, Section 45 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.