Cabinet Regulation No. 284
Riga, 23.03.2010 (Minutes No.15, #28)
Regulations on the approval of the Excise Tax and Value Added Tax
Exemption Certificate
Issued pursuant to
Section 7, Sub-Paragraph 11
of the Law on Value Added Tax
and Section 20, Paragraph two, Clause 1 Sub-clause 'b'
of the Law on Excise Tax
I. General Provisions
1. This Regulation shall provide the procedure for:
1.1. approving excise duty and value added tax exemption certificates,
(hereinafter “the Certificate”) duly prepared in accordance with the
requirements of European Commission Regulation (EC) No. 31/96 of 10
January 1996 on the excise duty exemption certificate (hereinafter
“Regulation No. 31/96”);
1.2. granting or revoking the right to use the Certificate without approval.
2. The institutions of the Republic of Latvia which may approve the Certificate
or grant the right to use the Certificate without approval, are:
2.1. the Ministry of Foreign Affairs;
2.2. the Ministry of Defence.
3. The Certificate application form sample is provided in the Annex to the
Regulation No. 31/96. Instructions for the completion of the Certificate
application form are provided on the website of the Ministry of Foreign
Affairs (http://www.am.gov.lv/en/protocol/). The officially recognised
languages in the Republic of Latvia for completing the Certificate application
form shall be Latvian or English.
4. The Ministry of Foreign Affairs shall approve Certificates completed by the
following entities registered in the Republic of Latvia (a Certificate is
approved by the seal and the signature of the head of the respective mission,
representation or institution:
4.1. diplomatic and consular missions and representations of international
organizations;
4.2. diplomatic and consular agents, administrative and technical staff
members, and family members of persons specified herein of diplomatic
and consular missions and representations of international organizations;
4.3. staff members of representations of international organizations who
have diplomatic status in the territory of the Republic of Latvia, provided
these persons are not citizens or permanent residents of the Republic of
Latvia;
4.4. institutions of the European Union in accordance with the Protocol on
the Privileges and Immunities of the European Union.
4.5. persons specified in agreements concluded with foreign countries
which are not the Member States of the European Union or with
international organisations, in cases where such agreements are permitted
or approved with regard to the exemption from value added tax, - in order
to purchase excise goods specified in the said agreements.
5. The Ministry of Defence shall approve Certificates which have been
completed by:
5.1. the units of the armed forces of any State party to the North Atlantic Treaty
Organization (NATO), stationed in the Republic of Latvia (except for the National
Armed Forces of the Republic of Latvia);
5.2. civilians who accompany the units of the armed forces specified in Sub-clause
5.1, provided these persons are neither citizens nor permanent residents of the
Republic of Latvia.
5.3. the units of the armed forces of the United Kingdom stationed in Cyprus in
accordance with the Treaty Concerning the Establishment of the Republic of
Cyprus of 16 August 1960, and civilians who accompany the units of the armed
forces, provided these persons are neither citizens nor permanent residents of the
Republic of Latvia.
6. The Ministry of Foreign Affairs does not approve a certificate in cases of noncompliance with the provisions of Section 20, Paragraph two, Clause 2 Subclause 'd', and Paragraph five Clause 3 of the Law on Excise Duties.
7. The Ministry of Defence does not approve a certificate if persons specified in
Clause 5 of this Regulation have completed the certificate for the purchase of
acoholic drinks and tobacco products.
8. In the event a person specified in Sub-clause 4.1, 4.4 or 5.1 of this Regulation,
purchases goods or receives services for official needs, the Ministry of Foreign
Affairs or the Ministry of Defence shall decide on granting to the person the
right to use the Certificate without approval for a period of time not exceeding
12 months.
9. A person specified in Sub-clause 4.1, 4.4 or 5.1 of this Regulation, who builds
real estate inland for official use, has the right to use the certificate inland for
purchase goods and receive services indicated in the Certificate for the
construction of this real estate, (including supply of construction materials,
project preparation and construction services).
10. In the event a person specified in Sub-clause 4.1, 4.4 or 5.1 of this Regulation
builds real estate in the territory of the Republic of Latvia for official use, the
Ministry of Foreign Affairs or the Ministry of Defence shell decide on
granting to the person the right to use the Certificate without approval for the
period of execution of the real estate construction project.
11. In the case mentioned in Clause 9 of this Regulation:
11.1. the Certificate shall be completed for submission separately for each
supplier of goods or provider of services registered in the State Revenue Service
Register of Persons Taxable with Value Added Tax;
11.2. the Certificate shall be completed for each taxation period during which
goods or services have been received;
11.3. an indication “Republic of Latvia” shall be made in Column 5, Section A,
Clause 2 of the Certificate form.
11.4. the name, quantity, unit price and total value in Lati (excluding value added
tax) of the goods or services received during the taxation period shall be indicated
in Column 5, Section B of the Certificate form.
II. Procedure for Approving the Certificate
12. In order to have the Certificate approved, a person specified in Clause 4 or 5
of this Regulation (hereinafter the Applicant), shall complete a Certificate
form in triplicate and submit it to the Ministry of Foreign Affairs or the
Ministry of Defence, as appropriate.
13. The appropriate authorized person of the Ministry of Foreign Affairs or the
Ministry of Defence shall, within fifteen working days of receiving the
completed Certificate form:
13.1. check whether the Applicant complies with the requirements under the
provisions of the Law on Value Added Tax, the Law on Excise Tax and this
Regulation;
13.2. check whether the Certificate form is completed in accordance with the
requirements under Clause 3 of this Regulation, observing the requirements
mentioned in Clause 11 of this Regulation;
13.3. check whether a translation is attached if the Certificate form or the
purchase order form is completed in a language not indicated in Clause 3 of this
Regulation;
13.4. decide on the approval of the Certificate.
14. When the decision on the approval of the Certificate has been taken, the
Ministry specified in Clause 13 of this regulation, shall:
14.1. approve the Certificate by signing and affixing a seal in Column 6 of the
Certificate form;
14.2. approve the purchase order form, if one is attached to the Certificate, by
signing and affixing a seal;
14.3.
allocate a registration number to the Certificate.
15. The Ministry of Foreign Affairs or the Ministry of Defence shall ensure that
certificates and decisions taken regarding those be entered into a database by
specifying the following:
15.1.
the Applicant's the name (legal entity) and accreditation number in the
Republic of Latvia, or name, surname and the Diplomat’s Certificate number of a
physical person,;
15.2
the approval date of the Certificate;
15.3.
the registration number of the Certificate;
15.4.
the name, quantity and total value (specifying currency) of goods, as
indicated in the Certificate or purchase order form:
15.4.1.
that are to be purchased in other Member states of the European Union,
exempt from value added tax and excise tax;
15.4.2.
that are to be purchased inland;
15.5.
the name, quantity and total value (specifying currency) of services, as
indicated in the Certificate or purchase order form:
15.5.1.
that are to be purchased in other Member states of the European Union,
exempt from value added tax;
15.5.2.
that are to be purchased inland;
15.6.
any other information, if required.
16. In the event the Certificate is not approved, the Ministry of Foreign Affairs or
the Ministry of Defence shall return the Certificate form specified in Clause 12 of this
Regulation to the Applicant within fifteen working days, indicating reasons for
refusal:
16.1
the Applicant is not eligible under the provisions of the Law on Value
Added Tax, the Law on Excise Tax and this Regulation;
16.2
the Certificate form has not been completed in accordance with the
requirements of the Regulation No 31/96 or does not comply with requirements under
Clause 3 of this Regulation;
16.3
the Certificate form or purchase order form has not been completed in
one of the languages indicated in Clause 3 of this Regulation, and there is no
translation attached;
16.4.
other provisions of this Regulation are not complied with.
17. The Ministry of Foreign Affairs or the Ministry of Defence shall:
17.1.
notify the European Commission of the commencement of the
approval procedure for a Certificate, indicating the authority of the Republic of Latvia
responsible for the approval of the Certificate;
17.2.
forward samples of signatures and seals used for approving
Certificates, to the State Revenue Service and the European Commission. The said
samples shall be sent:
17.2.1.
prior to commencement of the Certificate approval;
17.2.2.
within five working days, if the signature or the seal has been changed.
III. Procedure for granting the right to use the Certificate without approval
18. In order to obtain the right to use the Certificate without approval as provided
under Clause 8 or 10 of this Regulation, a person indicated in Sub-clause 4.1, 4.4 or
5.1 of this Regulation, shall submit to the Ministry of Foreign Affairs or the Ministry
of Defence, a respective written application.
19. The Ministry of Foreign Affairs or the Ministry of Defence shall, within
fifteen working days from receipt of the application specified in Clause 18 of this
Regulation, decide whether to grant the Applicant the right to use the Certificate
without approval.
20. If a decision has been taken to grant the Applicant the right to use the
Certificate without approval, the Ministry of Foreign Affairs or the Ministry of
Defence shall inform in writing, within fifteen working days:
20.1.
the Applicant, indicating the time period for which the right has been
granted to use the Certificate without approval, and the date and number of such
decision;
20.2.
the State Revenue Service and the European Commission, indicating
the person who has been granted the right to use the Certificate without approval, the
time period for which such right has been granted, and the date and number of such
decision.
21. The decision by which the Applicant has been granted the right to use the
Certificate without approval shall be included in the Register as named in Clause 13
of this Regulation in the Ministry of Foreign Affairs or the Ministry of Defence, as
appropriate, indicating the time period for which such right has been given, and the
date and number of such decision.
22. If a person who has been granted the right to use the Certificate without
approval has used the Certificate for purchasing goods or receiving services in noncompliance with provisions under Clause 9 of this regulation, the Ministry of Foreign
Affairs or the Ministry of Defence shall, based on the information provided by the
State Revenue Service and within five working days, shall revoke the decision
specified in Clause 19 of this Regulation on granting the right to use the Certificate
without approval and shall advise the Applicant and the State Revenue Service in
writing on the revocation of this decision, indicating the reason for revocation and the
date on which the decision has been revoked, and the Applicant has lost the right to
use the Certificate without approval.
23. The date on which the decision mentioned in Clause 18 of this Regulation has
been revoked and the reason for revocation of the decision shall be indicated in the
Register of Certificates mentioned in Clause 13 of this Regulation in the Ministry of
Foreign Affairs or the Ministry of Defence, as appropriate.
24. The person mentioned in Clause 4 or 5 of this Regulation shall be refused the
right to use the certificate without approval for a period of three years if:
24.1.
the person who has not been granted the right to use the Certificate
without approval under Clause 8 or 10 of this Regulation, has used it without
approval;
24.2.
the person who has been granted the right to use the Certificate without
approval by a decision under Clause 19 of this Regulation has used it after the end of
the time period indicated in the decision.
24.3.
the decision under Clause 19 of this Regulation on the granting of
rights to a person to use the Certificate without approval has been revoked.
25. In the event where a decision is made not to grant the Applicant the right to
use the Certificate without approval, the Ministry of Foreign Affairs or the Ministry of
Defence, as appropriate, shall, within fifteen working days, advise the Applicant in
writing, indicating the reason for refusal:
25.1.
the Applicant is not eligible under the provisions of the Law on Value
Added Tax, the Law on Excise Tax and this Regulation;
25.2.
the right to use the Certificate without approval is being applied for
before a three year period has expired from the date of revocation of the decision
under Clause 19 of this Regulation on the granting of rights to a person to use the
Certificate without approval.
IV. Concluding provision
26. To declare the Cabinet Regulation No 49 of 13 January 2009 “Regulations on
the Approval of the Excise Tax and Value Added Tax Exemption Certificate” null
and void (The Official Journal of the Republic of Latvia, 2009, No 14).
27. This Regulation shall enter into effect as from 1 April 2010.
Prime Minister
V.Dombrovskis
Minister of Finance
E.Repše