Glossary

Import of goods

In Latvian: Preču imports

VAT Updated

An import of goods (preču imports) is the entry of goods into the European Union from third countries or territories, released for free circulation. Import VAT is charged at the same rate that would apply to the goods bought in Latvia.

The taxable amount is the customs value of the goods plus customs duty and other import charges, and transport and insurance costs to the first destination in Latvia where not already in the customs value. The place of import is the country where the import customs procedure is completed.

Usually the VAT is paid at customs together with the other import charges. A VAT payer with VID approval can use the special import VAT regime: the VAT is then not paid at customs but reported in the VAT return.

Import VAT paid or reported can be deducted as input VAT in the period of import, where the goods serve taxable supplies.

Example

SIA “Ozols” imports tools from China with a customs value, including duty and transport to Riga, of EUR 10,000. It pays 21% VAT, EUR 2,100, at customs and deducts the same amount as input VAT in that month’s return.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.