VAT in Latvia: Transfer of a business
Transfer of a business
According to Section 14 of the VAT Act, no VAT is due in the case of the transfer of a business or part thereof to another taxable person.
If a company, which in its period of operation was registered as a taxable person, is divided as a result of a reorganization, or a part of it is divested and new companies are established and are registered with the State Revenue Service as taxable persons, within 30 days after their registration in the Enterprise Register of the Republic of Latvia, tax for the divested property is not calculated.
If a company, which in its period of operation was registered as a taxable person, is merged as a result of a reorganization, or the company – a taxable person – is acquired by another company and the newly established company takes over all the rights and obligation of the merged or acquired company, tax for the transferred property is not calculated.