Starting with 2025, credit institutions and payment institutions in Latvia will need to report to the State Revenue Service (VID) information about private clients whose total amount of cash added to their account with a single credit institution or payment service provider was EUR 7 000 or more in the previous year.
This is provided for by the amendments to the Cabinet of Ministers (Cabinet) regulations “Procedures for The Provision of Information on the Turnover and Balance of Accounts of a Natural Person to the State Revenue Service” approved by the government on Tuesday.
The Regulations of the Cabinet of Ministers had to be amended, because on 4the of December 2024 the Saeima adopted amendments to the Law on Taxes and Duties at the second (final) reading, which provide for the obligation of a credit institution and payment service provider to submit to the VID also information on customers whose total amount of cash credited to their payment account in the previous year within the framework of one credit institution or payment service provider is EUR 7 000 or more.
The Ministry of Finance explains that the changes were introduced to promote greater transparency in cash transactions and to ensure efficient tax administration. The procedure provided for in the Terms and Conditions will be binding for all credit institutions and payment service providers in Latvia.
Amendments will come into force on the 1st of January 2025.