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

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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.

Disclaimer: Reproduced/Adapted with permission from Global VAT Compliance.

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