Latvian State Tax Service develops mail tax calculator – Baltic News Network
To let residents know how much tax they will have to pay before making an online purchase, the Latvian State Tax Service (VID) has developed a Mail Tax Calculator.
The calculator will help people who buy online or on e-commerce platforms and who receive mail from countries outside the EU to know the total amount they will need to pay for the goods they want to buy.
When selecting a product to buy from an online store located in a third country, residents will be able to use the tax calculator to determine the amount of tax they will have to pay.
“Every day, we provide consultations and we regularly receive questions from residents on the calculation of the tax on the mail. The application of the tax depends on the value of the mail order, the type of goods ordered and other nuances. That’s why we have developed a simple electronic tool to help every resident calculate the amount of tax they have to pay for the ordered goods,” says Irēna Knoka, Head of the Clearance Methodology Office of the VID Customs Office. .
By filling in a few columns of information in the calculator, residents can calculate the amount of VAT and customs duty and the amount of excise tax, if applicable to the goods ordered. If several taxes have to be paid for the goods, the calculator will calculate each tax amount separately. The calculator supports Latvian, English and Russian languages.
The amount of tax calculated is valid for the day it is used and may change depending on changes in regulations or the exchange rate.
The calculator is intended to be used by residents to calculate taxes for mail orders whose value does not exceed 1,000 euros, weight does not exceed 1,000 kg and the goods contained are included in the goods database of the calculator.
Although most online stores and e-commerce platforms sell goods under a special VAT regime, which provides the option of collecting VAT at the time the transaction is processed. However, if this regime is not used, the tax calculator is a great help to know in advance how much tax they will have to pay for the goods they want.