Revenue Service reminds: Santa Claus must pay taxes too

For all those who offer entertainment services dressed up as Santa Claus and other holiday-esque creatures, this year will be better after two pandemic winners. State Revenue Service (VID) reminded all holiday-spirit-makers that any economic activity must be registered, Zemgale Regional Television reported December 8.

The actor Ainārs Ašaks has been turning into Santa Claus for 40 years. The past two Decembers have been calm, but demand has increased this year. Santa Claus is needed at corporate events, a soldiers' base, kindergartens, and private events.

Ašaks said that once there had been just a few advertising stands and newspapers, but now social media is full of advertisements from all sorts of animators.

It also draws the attention of the VID which recalls that anyone who works or plans to act as an animator or Santa Claus and profits from it must register economic activity.

VID Tax Administration spokeswoman Sandra Podniece said: “The VID live with the time and monitor these advertisements, so you cannot rely on the assumption that nothing will happen. The animator must be responsible for the payment of taxes and it should be considered in good time, since in all cases the legislator has determined the registration of economic activity before it is initiated."

An animator can register as a self-employed person, be a micro-enterprise taxpayer, or register an income account with the VID where the tax payment is calculated automatically.

Meanwhile, the Consumer Rights Protection Center (PTAC) reminded those who order the service to make a formal transaction based on a written agreement.

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