October 20, 2020


News from the European Union

Latvia’s Tax debts slightly decreases

At the beginning of August tax debts in Latvia improved slightly. This includes topical and halted debts, as well as repayment term extensions. The tax debt volume was EUR 1.0001 billion, which is 1.3% less than a month prior, as reported by State Revenue Service (VID).

Additionally, debts before the state base budget reached EUR 509.008 million at the beginning of august, which is a decline of 2.9% when compared to the beginning of June. Debts before municipal budgets formed EUR 293.684 million, which is 0.7% than a month prior, whereas debts of social insurance contributions were equal EUR 198.229 million, which is 0.3% than before.

Topical debts for which delay penalty was calculated reached 52.9% on 1 August 2020 of the total debt volume or EUR 529.269 million.

Additionally, data from VID shows that debts equal to EUR 256 230 were declared unenforceable as of 1 August. These debts were accumulated for liquidated companies before the end of the liquidation procedure.

According to regulations, debts worth EUR 529.013 million were declared enforceable as of the beginning of August. Debts worth EUR 173.201 million were declared actually enforceable and debts worth EUR 355.812 million as non-enforceable. Of the debts declared actually unenforceable, debtors have no money or property to enforce to pay the amount of EUR 353.698 million. Enforcement statute of limitations has been reached for debts equal to EUR 2.113 million.

At the beginning of August repayment term extension was provided to debts worth EUR 215.821 million, which is 4.7% more than a month prior.

The amount for which calculation of the late payment fee has been stopped was EUR 255.831 million – this amount consisted mainly of debts from insolvent companies.

A month prior – July 2020 – the total amount of debts in Latvia reached EUR 1.014 billion.

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