Saeima approves reorganization of Latvian tax service

The Latvian Saeima on October 31 approved the reorganization of the State Revenue Service (VID) which is intended to position it as a "Tax administration partner" rather than a law enforcement agency.

The reforms separate the functions of the Tax and Customs Police Department from VID, and transferring the investigative and operational functions of the Internal Security Administration to the Corruption Prevention and Combating Bureau (KNAB).

The new State Revenue Service Law was adopted by the Saeima on Thursday, October 31, in the final reading, as well as the relevant amendments to three other laws.

According to the reorganization, those structural units that do not provide services to clients are to be separated from VID, and henceforth the main task of the tax administration will be to provide services, consultations and support to taxpayers in the field of taxes and customs.

The prevention, detection and investigation of criminal offenses in the field of finance will no longer be within the competence of the VID – these functions and tasks are expected to be transferred to the newly formed Tax and Customs Police under the supervision of the Minister of Finance.

However, the changes will not be immediate – the new State Revenue Service Law will enter into force only in 2026. The head of VID, Baiba Šmite-Roķe, stated before taking office that her intention will be to move towards an institution that "will be truly modern and customer-oriented".

Seen a mistake?

Select text and press Ctrl+Enter to send a suggested correction to the editor

Select text and press Report a mistake to send a suggested correction to the editor

Related articles

More

Most important