Tax debt
In Latvian: Nodokļu parāds
A tax debt (nodokļu parāds) is tax not paid by the deadline set in law. Late payment interest of 0.05% of the unpaid principal is charged for each day of delay, unless the law on that tax sets another amount.
If the total debt in taxes administered by VID exceeds EUR 150, VID makes that information public, except for payments whose deadline has been extended, split or deferred. A debt above EUR 150 also counts in law as an unfulfilled tax obligation.
In the unified tax account, late interest is calculated twice a month, on the 1st and the 15th. After a decision to recover the debt, the taxpayer has six months to ask for a voluntary payment schedule of up to three years.
Example
SIA "Liepa" pays EUR 2,000 of wage tax 20 days late. Late interest is 2,000 × 0.05% × 20 = EUR 20. While the debt exceeds EUR 150, it is visible in the public VID data.
Legal basis
- Law on Taxes and Fees, Section 29 likumi.lv
- Law on Taxes and Fees, Section 18 likumi.lv
- Law on Taxes and Fees, Section 26 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.