Tax period (taksācijas periods)

A tax period (taksācijas periods) is the span for which a VAT payer calculates the tax and files its VAT return. In Latvia it is one calendar month or one quarter, and the tax periods of a calendar year together make up the tax year.

The period is a month if taxable transactions exceeded EUR 50,000 in the previous or current year, or if the business supplies goods or services to VAT payers in other EU countries. A newly registered VAT payer also files monthly for its first six months, and a VAT group or fiscal representative always files monthly.

Every other VAT payer files quarterly. A quarterly filer that starts EU transactions or exceeds EUR 50,000 during the year moves to monthly filing until the end of the year. A switch from monthly to quarterly is notified to VID by 31 January of the tax year.

Deadlines run from the end of the period: the return within 20 days, the payment within 23 days. For the July to September quarter, for example, the return is due by 20 October and the tax by 23 October.