Vervo and Vervo Auto receive an A level rating in the tax rating system
The State Revenue Service (SRS) has created a new taxpayer rating system, which is available to the entrepreneurs in the Electronic Declaration System (EDS) profile, SRS representatives informed.
The SRS explains that the taxpayer rating is an informative tool that strengthens the understanding of fair business, as well as motivates and supports entrepreneurs, thus reducing the shadow economy.
The rating indicators are designed as an explanatory road map for improvements in the field of tax payment. The metrics visible to the company, marked in green, have been executed flawlessly. Indicators colored in yellow require attention and improvement. On the other hand, those which are colored red are critical and must be improved.
SRS informs that the rating consists of six sets of data - registration data, timely submission of declarations and reports, payment of taxes, applied penalties, remuneration level in the company, including in comparison with other professionals in the specific industry, and information that may indicate violations.
There are 5 rating levels. Vervo Group companies Vervo and Vervo Auto both have received an A-level assessment, which shows that these companies are responsible and reliable cooperation partners.
Explanations of tax rating levels:
"Level A" company pays taxes on time and has no significant risk of irregularities. The company is a reliable taxpayer and can be a reliable cooperation partner for the state. A-level companies also get several advantages, which you can find here: https://www.vid.gov.lv/
The "level B" company generally fulfills its obligations to the state, however, there is a room for improvement - more timely submission and more accurate preparation of declarations, declaring and paying all taxes on time. This company can be a business partner, but potential partners need to more carefully evaluate the terms of cooperation, as well as whether this company has significant tax debts.
Meanwhile, the "C-level" company has been excluded from the register of VAT payers due to violations or the SRS has decided to suspend its economic activity. The ability of such companies to fulfill business obligations must be evaluated critically, and if the economic activity of the company is suspended, transactions with it are prohibited by law.
"N-level" companies are inactive taxpayers. According to the self-declared information, these companies do not conduct economic activity. When starting cooperation with such company, it should be assumed that for at least six months there have been no declared transactions, no employees or no salaries have been paid to them.
On the other hand, "level J" includes newly registered taxpayers that have been established within the last six months.
The SRS notes that the letter of the company's rating will be available in the SRS's public database from March 2024. Currently, companies with rating information can choose to voluntarily share it with their business partners and other stakeholders.
SRS informs that this year 24,219 companies or 18% of all Latvian companies were assessed with "A level", 59,238 companies or 43% - with "B level", and 9,194 or 7% - with "C level". Likewise, 4,057 companies or 3% of all were newly established, while another 40,482 or 29% were inactive taxpayers.