Latvia Tax Agency Explains Amended VAT Rules for Compulsory Shared Property

The Latvian State Revenue Service Feb. 7 explained the application of amended VAT rules for compulsory shared property, effective Jan. 1. The announcement includes measures to: 1) gradually replace forced lease relationships with land use rights under a compulsory divided property in cases of shared ownership; 2) exempt VAT on the rent for a forced lease; 3) exempt VAT on the 4 percent legal land use right fee; 4) continue the application of VAT on ordinary land leases; and 5) require taxpayers to pay the 4 percent legal land use fee quarterly in advance. [Latvia, State Revenue Service, 02/07/22]

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