In 2007-2013, previous VAT application procedure will be maintained
On October 2, the Cabinet of Ministers approved amendments to Regulation No 782 of the Cabinet of Ministers of September 7, 2004 „Procedure for submission and checking of information about application of value added tax within the framework of projects co-financed from European Union structural funds* and financed from European Community initiative EQUAL and for taking decisions on inclusion of value added tax in referable costs of the projects” which foresee maintaining of previous VAT application procedure for structural fund and EQUAL projects referring to structural fund projects of the next EU fund acquisition period (2007-2013).
Regulation of the Cabinet of Minister states the following procedure for project implementers to recover VAT within EU structural fund and EQUAL projects – if a project implementer submits an interim payment request, a managing or cooperation institution (line ministry or state agency) immediately repays the sum of VAT, which is planned to be included in referable costs of the project according to the submitted interim payment request.
After the receipt of SRV opinion, the managing or cooperation institution shall withhold the overpaid VAT sum which was included in referable costs of the project according to interim payment request but which should not be included there. The overpaid VAT sum shall be withheld from the next or last structural fund payment request.
* In the period of 2007 - 2013 EU structural funds are European Regional Development Fund and European Social Fund.
Lita Kokale
Ministry of Finance
EU Funds Department
PR Division
Phone: +371 67083880; +371 2 6469946
Lita.Kokale@fm.gov.lv
