Latvia: Input VAT deduction for passenger cars.
European Commission proposal for the extension of the deduction right of passenger cars in Latvia.
The European Commission issued a proposal on the 31 of October 2018, concerning the right to deduct input VAT for passenger cars.
In relation to passenger cars, the current legislation states that Latvia is authorised to restrict the right of deduction to 50%. This legislation was expected to expire on 31 December 2018. Subsequently Latvia has applied for an extension of authorisation. The current proposal states that the derogation will be extended until the 31 of December 2021.
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