Latvia: New reporting obligations for digital platform operators (DAC7)

Council Directive (EU) 2021/514 (DAC7) is being incorporated into Latvian law

New reporting obligations

The Council Directive (EU) 2021/514 (DAC7) is being incorporated into Latvian law and will require digital platform operators to provide information on income generated by vendors—effective 1 January 2023.

The draft law has been approved by the Cabinet of Ministers and forwarded to the Saeima for review.

The more detailed requirements of DAC7 are intended to be incorporated into Latvian law by means of a Cabinet Regulation on automatic exchange of information on vendors that generate income through digital platforms. The regulation is planned to address:

  • Conditions under which platform operators will be required to provide information to the State Revenue Service (SRS) on vendors that generate income in the particular digital platform
  • The volume of disclosures to be made
  • The procedure for obtaining, checking and providing such information to the SRS
  • Measures to be taken to provide automatic exchange of information
  • Rights and obligations related to the exchange of information
  • The procedure to be used by the SRS to automatically exchange information with tax administrations of other member states

The Cabinet Regulation is currently under public discussion. According to DAC7, the regulation must be incorporated in member state law by 31 December 2022 and applied from 1 January 2023.  Digital platform operators will be required to submit their first report (for 2023) by 31 January 2024. The Cabinet Regulation is expected to enter force on 1 January 2023.

Read a December 2022 report prepared by the KPMG member firm in Latvia


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.