In 2024, the State Revenue Service (SRS) will launch a rating system for Latvian companies. Amendments to the law On Taxes and Fees were approved by Parliament on 8 June. The new system has two purposes: 1) companies will be able to see their tax payment discipline in detail, which affects cooperation with SRS, and 2) company ratings (general info) will be publicly visible so that possible cooperation partners, customers, and other interested parties can verify the company’s overall tax payment performance. SRS will use the taxpayer segmentation system already in place to determine a company's rating, which is based on tax payment history data available to SRS.
Companies will be able to prove their reliability and honesty in tax payments to cooperation partners and the public. It will also provide companies with information on SRS's view of businesses by revealing information on their tax obligations, thus serving as an additional tool to protect honest companies from engaging in transactions with possibly risky partners.
Companies will receive one of five possible ratings, which will also be visible to the public:
A – good tax payment discipline and no significant risks.
B – risk of fulfilling tax obligations in at least one area (registration, declaration submissions, complete data, tax payments) that needs improvement.
C – excluded from the VAT payer register for violations, or SRS has suspended economic activity.
N – does not carry out active economic activity, i.e., does not create paid jobs and does not pay taxes.
J – registered in the last six months.
Any company for which SRS has created an overall rating assessment will be able to view detailed information on its rating in the Electronic Declaration System (EDS), including detailed information on sets of indicators to assist in prevention of tax liabilities.
SRS supports honest taxpayers, and checks and control measures are directed only against those whose activities show violations and who risk non-payment of taxes.