šŸ” Licensing Requirements for Outsourced Accountants

In our ongoing commitment to keeping you informed about crucial updates in Latvia’s financial landscape, we bring you the latest information on the licensing of outsourced accountants. Effective since 1 July 2021, the State Revenue Service (SRS or VID) has implemented licensing for outsourced accountants, ensuring a higher standard of service and accountability.

šŸ“… License Renewal Reminder: Annual Submission of Insurance Policy

A quick reminder for service providers: To extend an outsourced accountant’s license, the service provider must submit a renewed civil liability insurance policy to the State Revenue Service every year through the Electronic Declaration System. Access the submission portal here ā€“ Documents ā€“ Form ā€“ Information to the State Revenue Service.

šŸ’¼ Understanding Licensing Procedures

An outsourced accountant’s license is essential for both individuals and enterprises offering accounting services. Notably, an enterprise requires only one license for the entire company, not for each individual accountant. The key requirement is the appointment of a responsible accountant within the company, who must meet specific criteria:

Minimum three years of accounting experience.
Minimum first-level professional higher education or academic bachelor’s degree in accounting, economics, management, or finance.
The responsible accountant may also serve as a board member within the company.

šŸ“œ Exceptions and Extended Validity Periods

The law introduces exceptions to accommodate specific circumstances:

Old-Age Pension Recipients: Individuals with old-age pensions or those with six years or less until retirement, possessing relevant accounting experience, can obtain a license valid until 1 July 2027.

Education Requirements: For those lacking the required education but with accounting experience, there’s an opportunity to pursue education and apply for a license valid until 1 July 2025. Continued proof of education progress must be submitted annually to the SRS by October 15.

šŸ“Š Access to Public Register

A public register of outsourced accounting service providers is now available in the SRS public database. This resource enables users to verify the licensing status of individuals or companies providing outsourced accountant services.

šŸ”— Connect with BL GramatvedÄ«ba for Expert Assistance

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