A country-specific update for Latvia is available to update the value-added tax (VAT) declaration XML file format in Microsoft Dynamics AX 2009 Service Pack 1 (SP1) and Microsoft Dynamics AX 2012 R2

• VAT declaration, "VAT tax payment period declaration".
• VAT1 appendix I, "I. For domestic purchases of goods and services purchased".
• VAT1 appendix II, "II. For goods purchased from EU member states".
• VAT1 appendix III, "III. A tax on delivered goods and services".
• VAT2, "Report for goods delivered within EU" (the EU Sales list).

More information

1. According to the government document, some xml elements are removed from the new format and some new xml elements are added.
2. The EU Sales list button is added in the Sales Tax Payment dialog box. You can use the button to open the EU Sales List dialog box. You can view the newly added button in the following location:
   GL/Reports/External/Sales Tax Payment
3. VAT declaration can be reported quarterly or with half-year periodicity. It depends on the VAT settlement period. You can configure the property for reporting period in the following location:
   GL/Setup/Sales tax/Sales tax settlement periods/Tab General
   • For quarterly periods: period interval Months, Number of units 3.
   • For half-year periods: period interval Months, Number of units 6.
4. You can mark reported transactions as Reported in the EU Sales list by selecting the Mark as reported check box in the Export VAT xml file dialog box.
5. The following changes are made in the Export VAT xml file dialog box:
   1. In the Contact information area:
      • The Account Manager, Company Manager and Position fields are removed.
      • The E-mail address field is added.
      • The Phone number field is changed to be optional.
   2. In the Tax overpayment area, the Overpaid domestic VAT amount field (tag <SummaParm>) is added.
6. The following business types are added on the Calculation tab in the "Sales tax codes" form in Microsoft Dynamics AX 2009 SP1:
   1. Deals with timber
   2. Dealing in scrap metal
   3. Construction Services
7. The Goods in accordance with section 33 paragraph 4 value is added to the Tax Code Type drop-down list in the Belgian Journal Reports area on the Report setup tab in the "Sales tax codes form in Microsoft Dynamics AX 2009 SP1.
8. The Business type drop-down list that includes the following values is added on the Calculation tab in the "Sales tax codes" form in Microsoft Dynamics AX 2012 R2:
   1. Import
   2. Business with VAT chargeable company
   3. Business with partner without VAT registration number
   4. Compensation paid to farmer
   5. Lost liabilities
   6. Timber related business
   7. Scrap metal related business
   8. Construction service related business
9. The Goods in accordance with section 33 paragraph 4 value is added to the Reporting type drop-down list in the "Item sales tax group" form in Microsoft Dynamics AX 2012 R2.