The Latvia Tax Agency explains applicable VAT on online purchases of goods outside the EU

The Latvian State Revenue Service explained how VAT works when buying goods from outside the EU online.

VAT is applicable for online purchases of goods outside the EU if:

• Non-EU sellers who are registered on the Import One-Stop-Shop (IOSS) can add VAT to the price of goods, which will be paid by the country where the goods will arrive.
• On their e-commerce platform, sellers must make it clear how much VAT is charged for a purchase.
• Natural persons can only use IOSS-based e-commerce platforms to buy goods.
• VAT must be paid at customs clearance time by sellers from outside the EU who are not registered for the IOSS.