On 6 December 2023, Latvia issued the Law of 6 December 2023 on Amendments to the Law on Taxes and Fees (Duties).
The law allows for enforcing the joint audit rules of Council Directive (EU) 2021/514 concerning the exchange of income information generated by sellers through digital platforms (DAC7).
DAC7 mandates digital platforms to collect, verify, and report information on sellers who utilize their digital platforms to sell and provide defined products or services. DAC7 also encourages the sharing of information and collaboration between tax authorities of Member States.
Latvia has partially enforced the DAC7 requirements through the Law of 22 December 2023, which was enacted on 1 January 2023. This prompted the European Commission to issue a letter to Latvia in January 2023 asking it to fully implement the DAC7 requirements, including the joint audit rules.
The Law of 6 December 2023 will come into effect on 1 January 2024.
