The Latvian government's new law to increase VAT to 21 percent from January 2009, raise excise taxes and cut income tax has several amendments. For example, there is an exemption if goods or services were delivered this year but an invoice is written out in 2009. Mairita Solima, director of the Hotel Gutenbergs and Marciena Real Estate, believes that 20-30 percent of tourism companies will go bankrupt because of the increased VAT rate.

 

Dienas Bizness, 2008-12-15