Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LV-2020-14/618 – Updated – measures in Latvia
|Country||Latvia , applies nationwide|
|Time period||Temporary, 01 April 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Kriss Karnitis (EPC) and Eurofound|
|Measure added||15 April 2020 (updated 16 November 2021)|
Refund of the overpayment of a value added tax is a measure introduced with the objective to make available additional financial resources to deal with the crisis caused by the COVID-19 virus.
The measure is introduced in Section 6 of the law 'On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19' (adopted on 20 March 2020, valid from 22 March 2020).
Normally, according to Section 109 of the Value Added Tax Law, the State Revenue service carry forward the approved amount of overpaid tax to the next taxation period.
Section 6 of the 'Law On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19' sets forth different procedures for the anticipated refund of overpaid value added tax in the time period from 1 April 2020 to 31 December 2020. During this time period the procedures of refunding laid down in Sections 109 and 110 of the Value Added Tax Law should not be applied.
State Revenue Service has to refund the approved and overpaid amount of value added tax which has been submitted to State Revenue Service after 31 March 2020 within 30 days. Prior to the refund of the approved and overpaid amount of value added tax, State Revenue Service has to cover the taxes and duties of the taxpayer administered by the State Revenue Service, other payments stipulated by the State and the payments related thereto.
Until 30 June 2020, the State Revenue Service provided faster refund of the overpaid value added tax (VAT) to 101,816 companies in the total amount of €240,643,900.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Top level social partner organisations – the Latvian Employers’ confederation and the Free Trade Union Confederation of Latvia – on 17 March 2020 has published the 'Statement on support for government action to limit the spread of COVID-19 and reduce the impact of the crisis on Latvian companies and workers'. The social partners emphasized the need for cooperation of government, businesses, workers and citizens to ensure that everything we do helps to address this crisis.
As far as we know social partners participate in discussions on measures for the prevention and suppression the spread of COVID-19 and on crisis impact on economy. However specific opinions of social partners are not published.
Eurofound (2020), Direct refund of the overpayment of VAT, measure LV-2020-14/618 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2020-14_618.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.