EN 
LV Law “On Excise Tax”
Law “On Excise Tax”
Section 18. Tax exemptions and reliefs for petroleum products
(5) The Cabinet of Ministers shall determine the procedure for the implementation of this Law. Article 14 2.2 The tax rate specified in Part 1 shall be applied to diesel fuel (gas oil) and to such diesel fuel (gas oil) to which biodiesel obtained from rapeseed oil has been added, if the relevant petroleum products are marked (labelled) in accordance with the provisions of this Law. Article 28 and if they are used in tractors and self-propelled agricultural machinery for the production of agricultural products, the cultivation of agricultural land, as well as for the cultivation of forest or marsh land where cranberries or blueberries are cultivated, and for the cultivation of land under fish ponds, and if the minimum income from agricultural production is ensured, but in relation to fish ponds - income from the sale of aquaculture products in the last closed financial year (excluding state and European Union support received) per one hectare applied for and the requirements of this Part have been met 1., 3., 4. and In paragraph 6 the conditions mentioned above, as well as at least one of the conditions of this part is met In paragraph 2 the following conditions:
1) the agricultural producer carries out economic activities and is registered as a taxpayer;
2) The agricultural producer shall process:
a) agricultural land that has been declared and approved for the receipt of the single area payment in accordance with the regulatory enactments on the granting of state and European Union support to agriculture within the framework of the direct support scheme, except for agricultural land where short-rotation crop species such as aspen are grown (Populus spp.), willow (Salix spp.), white alder (Alnus incana), fescue (Panicum virgatum) or nightshade (Phalaris arundinacea L.), and if the agricultural producer has registered with the Agricultural Data Centre as a primary producer of animal feed, - for the land used for areas of permanent grassland or grasses sown on arable land, or forage herbaceous mixtures (hereinafter in this Article - grassland areas);
b) forest or marsh land where cranberries or blueberries are cultivated and which is owned or used by the agricultural producer;
c) land under fish ponds where fish are raised in an area of not less than 20 hectares, applying the farming cycle coefficient to each hectare of land applied for under fish ponds, if the aquaculture sector enterprise is recognised in accordance with the regulatory enactments on veterinary requirements for aquaculture animals and the aquaculture animal holding is registered with the Agricultural Data Centre;
3) in one financial year (from 1 July of the current year to 30 June of the following year) (hereinafter referred to as the financial year) from 60 to 130 litres of the fuel referred to in the introductory part of this Part for each In paragraph 2 the hectares of agricultural land declared and approved for the support of the agricultural producer referred to, as well as hectares of forest or bog land where cranberries or blueberries are cultivated, or hectares of land under fish ponds, taking into account the following distribution depending on the crop grown:
a) crop production - 100 liters per hectare,
b) fruit growing, berry growing and horticulture - 130 litres per hectare,
c) grassland areas, if a minimum livestock density of at least 0.5 conditional cattle units per hectare is ensured (in organic farms the density is at least 0.4 conditional cattle units per hectare), — 130 litres per hectare for grassland areas,
d) grassland areas for animal feed production - 60 litres per hectare,
e) land under fish ponds - 60 liters per hectare,
(f) other crops and areas declared and approved for the single area payment - 60 litres per hectare;
4) the fuel referred to in the introductory part of this Part was purchased in the relevant financial year from a merchant who has:
a) this law Article 2 the special permit (license) referred to in paragraph 1 of part six has been approved for the warehouse keeper's operations with petroleum products,
b) this law Article 2 the special permit (license) referred to in paragraph 4 or 5 of Part Six for operations with petroleum products, — from the specific fuel tank declared for this purpose indicated in the relevant special permit (license);
5) (excluded from 01.07.2015. with 17.12.2014. law. See Transitional Provisions Article 76);
6) the fuel referred to in the introductory part of this Part was purchased using one of the following payment methods:
a) funds are transferred from the agricultural producer's account at a credit institution to the fuel seller's account at a credit institution (cashless settlement),
b) the agricultural producer has used payment cards (credit cards, debit cards and other similar cards) that are considered a means of payment in accordance with Credit Institutions Law and which belong to the agricultural producer,
c) cash deposits have been made to the fuel seller's account at a credit institution, if the payments are made by the agricultural producer - a natural person;
(d) if these parts In paragraph 4 the said merchant ensures that the fuel referred to in the introductory part of this Part can be purchased using any of the payment methods referred to in subparagraphs “a”, “b” or “c” of this paragraph, the agricultural producer may purchase the aforementioned fuel also if prepayment or postpayment is made for its purchase and in this case the funds are transferred from its account at a credit institution to the account of the fuel seller at a credit institution by a legal person or a business operator who has acquired the right to claim the funds paid to the fuel seller from the relevant agricultural producer on the basis of a contract.
(51) The fuel referred to in the introductory part of the fifth paragraph of this Section is permitted to be used for the self-transportation of agricultural products produced or grown by the agricultural producer in the Republic of Latvia, if the self-transportation is carried out by the agricultural producer himself or his employee, using a truck owned by the agricultural producer (in which the number of seats, excluding the driver's seat, does not exceed two seats).
(6) The fuel referred to in the introductory part of Paragraph five of this Section is entitled to be supplied or sold by a merchant who has:
1) of this law Article 2 the special permit (license) referred to in Paragraph 1 of Part Six has been approved for the warehousekeeper's activities with petroleum products, - only for the agricultural producers referred to in Paragraph Five of this Section or for a merchant who has the Article 2 the special permit (license) for operations with petroleum products referred to in Paragraph 4 or 5 of Part Six, — to the specific fuel tank declared for this purpose indicated in the relevant special permit (license); 2) of this Law Article 2 the special permit (license) referred to in paragraph 4 of Part Six for the wholesale of petroleum products, if the said fuel is purchased from a merchant who has a license under this Law Article 2 The special permit (license) referred to in paragraph 1 of part six has been approved for the warehousekeeper's activities with petroleum products, and it is supplied or sold from the specific fuel tank declared for this purpose indicated in the special permit (license) for the wholesale of petroleum products only to the agricultural producers referred to in paragraph five of this Article. This right applies to a merchant who has had a valid special permit (license) for the wholesale of petroleum products for at least five years and at least one place of wholesale of petroleum products indicated in this special permit (license) where the sale of the fuel referred to in the introductory part of paragraph five of this Article is intended, the existing petroleum product tanks and pressure equipment complex tanks are owned by the relevant merchant;
3) of this law Article 2 the special permit (license) referred to in paragraph 5 of Part Six for the retail sale of petroleum products, if the said fuel is purchased from a merchant who has the Article 2 the special permit (licence) referred to in paragraph 1 of part six has been approved for the warehousekeeper's operations with petroleum products, and it is supplied or sold from the specific fuel tank declared for this purpose indicated in the special permit (licence) for the retail trade of petroleum products only to the agricultural producers referred to in paragraph five of this Section.
(61) The tax shall be levied in accordance with the procedures specified by the Cabinet on the purchased quantity of fuel referred to in the introductory part of Paragraph five of this Section, and in this case the tax shall be paid by the relevant agricultural producer if the Rural Support Service establishes and informs the State Revenue Service that the agricultural producer in the relevant financial year:
1) the difference between the area declared for support and the area approved for support or — as the case may be — the area of forest or bog land or the area where cranberries or blueberries are cultivated, or the area of land under fish ponds applied for exemption exceeds 10 percent;
2) the area of fallow land exceeds 30 percent of the total agricultural land for which there is a right to receive the single area payment and which has been applied for receipt of the single area payment in accordance with the regulatory enactments on the granting of state and European Union support to agriculture within the framework of direct support schemes;
3) the decision by which the quantity of fuel referred to in Paragraph five of this Section was allocated in the current financial year has been revoked.
(62) The Cabinet of Ministers shall issue regulations on the implementation of this law. Article 14 2.2 the application of the tax rate specified in Part 5 of this Section to the fuel referred to in the introductory part of Part 5 of this Section, determining:
1) (excluded from 01.07.2015. with 17.12.2014. law. See Transitional Provisions Article 76);
2) the procedure for applying the fish farming cycle coefficient;
3) the conditions for the supply and sale of the fuel referred to in Paragraph five of this Section;
4) the procedures by which the persons referred to in Clause 4 of Part Five of this Section provide information and ensure its updating in the unified database of the Rural Support Service regarding the fuel referred to in the introductory part of Part Five of this Section issued to the specific agricultural producer, to which this Law applies Article 14 2.2 the tax rate specified in the part, and its quantities;
5) the procedures by which the Rural Support Service carries out inspections of land used for agriculture, as well as inspections of forest or bog land where cranberries or blueberries are cultivated, and inspections of land under fish ponds;
6) the fiscal marker and dye with which the fuel referred to in the introductory part of Part Five of this Section is marked, as well as the conditions for the circulation of the marked fuel.
(63) If the fuel referred to in the introductory part of Paragraph five of this Section is not used for the specified purposes and the Rural Support Service has in this case revoked the decision by which the quantity of the fuel referred to in the current financial year was allocated, the Rural Support Service shall not allocate the fuel referred to in the introductory part of Paragraph five of this Section in the following financial year.
(7) (Off with 12.06.2009. law)
(8) (Off with 20.12.2004. law)
(9) Petroleum products (fuel) that ensure the operation of a specific commercial motor vehicle that enters the territory of the Republic of Latvia from a foreign country that is not a Member State shall not be taxed. Article 2 3.1 the territories referred to in Part 1, from the Åland Islands or the Channel Islands, and which are exempt from customs duty in accordance with Council Regulation (EC) No 1272/2009 of 16 November 2009. 1186/2009, setting up a Community system of reliefs from customs duties (hereinafter referred to as Regulation No 1186/2009).
(As amended by 18.03.2004., 20.12.2004., 19.12.2006., 14.11.2008., 12.06.2009., 01.12.2009., 22.04.2010., 28.10.2010., 14.04.2011., 15.12.2011., 17.12.2014., 07.05.2015. and 18.06.2015. law that comes into force 01.08.2015. 5.1 part comes into force 30.10.2015. See Transitional Provision 76. and Article 77).
The full Cabinet Regulation No. 194 can be found HERE.