Annual Tax Return: What Should pats.lv Users Consider?

Starting on 1st March, taxpayers can submit their annual tax returns. Individuals can do this voluntarily, whereas those engaged in economic activity – self-employed– are required to submit a return to calculate and pay personal income tax. As the date is coming closer, we have compiled the most relevant questions that PATS.LV users have previously had about preparing their tax returns.

Summary:

The tax return is submitted via eds.vid.gov.lv from 1st March to 1st June.
Individuals engaged in economic activity must fill in Appendix D3.
Personal income tax payment into the unified tax account must be made by 23rd June.
If annual income exceeds EUR 78,100, the tax return must be submitted between 1st April and 1st July.
Personal income tax must be paid by 23rd July.
If the tax amount exceeds EUR 640, it can be paid in three instalments.

Note! Individuals engaged in economic activity must pay a minimum tax of EUR 50 by 23rd June, even if they had no income in the previous year. However, the minimum tax does not need to be paid:

in the first year of business registration and the following year;
in the year the business activity is discontinued.

Are Quarterly Reports Sufficient for Filing an Annual Tax Return?

It is important to maintain accounting records throughout the year and submit quarterly reports on time. However, this alone is not sufficient for preparing the annual tax return. To complete the return correctly, all income and expenses related to economic activity must be specified, along with details of any tax reliefs.

Can an Annual Tax Return Be Created in the PATS.LV System?

The pats.lv system is designed for recording income and expenses, automatically calculating taxes, and preparing quarterly reports. The full annual tax return can only be submitted via the form available at eds.vid.gov.lv However, some necessary data for the return can be found on the es.pats.lv main page:

Select the relevant period: 2024.
Data from the "Income" section in PATS.LV should be entered in line 5 of Appendix D3.
Data from the "Expenses" section in PATS.LV should be entered in line 6 of Appendix D3 of the tax return.

Does PATS.LV Know About My Tax Reliefs?

Tax reliefs are directly related to the calculation of personal income tax and the submission of the annual tax return – they are applied to determine the taxable income accurately. However, information about tax reliefs is only available to the State Revenue Service and is automatically considered when calculating taxable income. This information is not available in the PATS.LV system.

Can the Personal Income Tax Amount Shown in PATS.LV Differ from the Data on eds.vid.gov.lv?

Yes, this is possible – the personal income tax calculated in PATS.LV is preliminary. It is based on the information you have registered in pats.lv. However, we do not have data on your other sources of income or tax reliefs. This information is only available to the State Revenue Service, so the amount of personal income tax shown in pats.lv may differ from that displayed on eds.vid.gov.lv

Further Information on the Annual Tax Return Can Be Found:

Remember – to successfully file your annual tax return, it is crucial to maintain accurate accounting records throughout the year! To simplify this process, try PATS.LV – automatic tax calculations, report preparation, and other features will help you manage your accounts more efficiently and accurately!