SALES
Transactions Involving Metal Products – Reverse Charge VAT Requirements
Is it mandatory to include the Intrastat / Combined Nomenclature (CN) code on the invoice?
No, it is not mandatory.
Including the Combined Nomenclature (CN) code on the invoice is not required to justify the application of the reverse charge mechanism for VAT.
Mandatory information on VAT invoices
According to Section 125(1) of the Latvian VAT Law, the following must be included on the VAT invoice:
- Date of supply of goods or services (or date of advance payment)
- Description of goods/services, quantity, and unit of measure
- Unit price excluding VAT
- Any discounts (if not already included in the unit price)
- Statement: “reverse charge” (Latvian: “nodokļa apgrieztā maksāšana”)
📌 The phrase “reverse charge” is sufficient for justifying the reverse VAT application on the invoice.
❗ Important Note
The reverse charge mechanism only applies to specific categories of metal products as defined by law. Therefore:
- 📁 Businesses must be able to prove that the sold goods fall under the correct CN code (via technical specifications, manufacturer certificates, product descriptions, etc.).
- 🗂️ Such proof must be retained for at least 3 years after the transaction.
|
No. |
Combined Nomenclature (CN) Code |
Description |
|
1. |
7207 |
Semi-finished products of iron or non-alloy steel |
|
2. |
7208 |
Flat-rolled products of iron or non-alloy steel, width ≥ 600 mm, hot-rolled, not clad, plated or coated |
|
3. |
7209 |
Flat-rolled products of iron or non-alloy steel, width ≥ 600 mm, cold-rolled, not clad, plated or coated |
|
4. |
7210 |
Flat-rolled products of iron or non-alloy steel, width ≥ 600 mm, clad, plated or coated (e.g., electrolytic coating) |
|
5. |
7211 |
Flat-rolled products of iron or non-alloy steel, width < 600 mm, not clad, plated or coated |
|
6. |
7212 |
Flat-rolled products of iron or non-alloy steel, width < 600 mm, clad, plated or coated |
|
7. |
7213 |
Hot-rolled bars in irregularly wound coils, of iron or non-alloy steel |
|
8. |
7214 |
Other bars and rods of iron or non-alloy steel, without further processing after forging, hot-rolling, hot-drawing or extrusion, including those twisted after rolling |
|
9. |
7215 |
Other bars and rods of iron or non-alloy steel |
|
10. |
7216 |
Angles, shapes and sections of iron or non-alloy steel |
|
11. |
7218 |
Stainless steel in ingots or other primary forms; semi-finished products of stainless steel |
|
12. |
7219 |
Flat-rolled products of stainless steel, width ≥ 600 mm |
|
13. |
7220 |
Flat-rolled products of stainless steel, width < 600 mm |
|
14. |
7222 |
Other bars and rods of stainless steel; angles, shapes and sections of stainless steel |
|
15. |
7224 |
Other alloy steel in ingots or other primary forms; other semi-finished products of alloy steel |
|
16. |
7225 |
Flat-rolled products of other alloy steels, width ≥ 600 mm |
|
17. |
7226 |
Flat-rolled products of other alloy steels, width < 600 mm |
|
18. |
7228 |
Other alloy steel bars and rods; angles, shapes and sections; hollow bars of alloy or non-alloy steel |
|
19. |
7407 |
Copper bars and profiles |
|
20. |
7604 |
Aluminium bars and profiles. |
