Proposal to extend the authorisation granted by European Commission to Latvia to restrict the right to deduct input VAT

7 November 2018
Latvia News

Latvia is currently authorised, under a special derogation granted by the European Commission, to restrict the right of deduction of input VAT to 50% in relation to certain passenger cars until 31 December 2018.

Latvia requested the prolongation of this authorisation. As such the European Commission has issued a Proposal on 31 October 2018 to allow Latvia to continue restricting the right to deduct input VAT incurred for passenger cars, which restriction could presently be extended until 31 December 2021.

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