Latvia Tax Agency Updates Methodological Material on Application of VAT to Construction Services

The Latvian State Revenue Service April 7 issued updated methodological material on the application of VAT to supplies of construction services. Topics covered include: 1) the application of the reverse charge mechanism to construction work provided domestically when the construction service provider and service recipient are VAT-registered in Latvia; 2) the nonapplication of the mechanism to maintenance, cleaning, or replacement work for the equipment of a building or structure, when the work doesn’t affect the internal and external walls; 3) clarification of what is considered construction work; 4) VAT reporting procedures for construction service providers, including the reporting of input ...