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On compliance of Part 123 and Part 125 of Section 12 of the Law “On Value Added Tax” (in the wording that was in force from 1 January 2010 until 31 December 2012), insofar as they restrict the right to have tax overpayment refunded within a reasonable term, with the first, second and third sentence of Article 105 of the Constitution of the Republic of Latvia

The Constitutional Court held:

to recognise Part 123and Part 125 of Section 12 of the Law “On Value Added Tax” (in the wording that was in force from 1 January 2010 until 31 December 2012), insofar they did not ensure that the over-paid VAT was returned to the taxpayer within a reasonable term, as being incompatible with Article 105 of the Satversme of the Republic of Latvia;
respect to all persons, to whom the contested norms had been applied and who had begun protecting their rights in the procedure established by the Administrative Procedure Law and with respect to which the administrative proceedings had not been concluded yet, to recognise Part 123and Part 125 of Section 12 of the Law “On Value Added Tax” (in the wording that was in force from 1 January 2010 until 31 December 2012), insofar they did not ensure that the over-paid VAT was returned to the taxpayer within a reasonable term, as being incompatible with Article 105 of the Satversme of the Republic of Latvia and void as of the moment they entered into force.
The judgement by the Constitutional Court is final and not subject to appeal, it will enter into force on the day of its publication.