From 2016 merchants have to declare leasing and lending service payments and associated interest payments made by individuals
From 2016 leasing and credit service providers have to submit an informative declaration to the State Revenue Service about leasing and lending service payments and associated interest payments made by individuals that exceeds 360 EUR per month or if the total amount of payments exceeds 4320 EUR in a calendar year.
Capital companies, producers, sellers, service providers and merchants that provides leasing and lending services also will have to submit the informative declaration, however the said obligation does not apply to credit institutions.
The first time the informative declaration have to be submitted is till February 1, 2016. It shall indicate the leasing and lending service payments and associated interest payments made by individuals in September, October, November and December 2015, if the amount in the relevant month exceeds 360 EUR or the total amount of contributions of those months exceeds 1,440 EUR.
Starting from 2017 the informative declaration about individual will have to be submitted each year if leasing and lending service payments and associated interest payments made by individuals exceeds 360 EUR per month or the total amount of payments exceeds 4320 EUR in a calendar year.
How to submit
The informative declaration has to be submitted electronically through the State Revenue Service electronic declaration system (EDS).
On 14 July 2015 Cabinet of Ministers adopted "Regulations on the leasing, loan and related interest payment declaration" that provides the information to be indicated in the informative declaration as well the procedure for submission of the declaration.
According to the Latvian Administrative Violations Code a a fine shall be imposed on natural and legal persons in an amount up to15 EUR for failure to comply with the deadline for the submission the informative declaration. Moreover, the indication of false information about of the statutory income, property, business or other pecuniary nature in the declaration, if such false information indicated about the property or other income in the large amount, is subject to criminal sanctions.