Latvia Updates Electronic Declaration System (EDS) Requirements for Accountants and Entrepreneurs
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Latvia’s State Revenue Service (SRS) has updated its requirements for accessing and utilizing the Electronic Declaration System (EDS), especially impacting outsourced accountants and entrepreneurs.These changes, driven by enhanced security protocols for state data systems, necessitate the use of qualified electronic identification tools and proper user authorization within the EDS platform. The updates aim to strengthen security while maintaining the high level of electronic service availability currently offered by the SRS.
Key Changes for accountants and Financial Service Providers
Outsourced accountants and othre financial service providers must now ensure they meet specific technical and authorization requirements to connect to the EDS. Specifically:
* Qualified Electronic Identification: Providers must utilize one of the qualified electronic identification tools approved for use with the EDS.
* Client Authorization: Accountants need to be registered as users within their clients’ EDS profiles and explicitly authorized to prepare or submit documents on their behalf.
Entrepreneurs have two convenient options for authorizing their accountants:
* Electronic Authorization via EDS: Accountants can be authorized directly through the EDS platform.
* In-Person Authorization: Authorization can also be completed in person at any SRS customer service center or at unified customer service centers throughout Latvia. Importantly, a notarized power of attorney is not required for this authorization.
Rationale for the Changes: Enhanced Security
The SRS explains that these changes are a direct result of a broader security policy update for all high-security state information systems in Latvia. The policy mandates the use of only qualified authentication tools to bolster security and protect sensitive data. This move aligns Latvia with EU regulations regarding electronic identification and trust services (eIDAS).
High Availability of Electronic Services
The SRS emphasizes that these security enhancements do not compromise service accessibility. Currently, 99.1% of SRS services are available electronically, utilizing EDS or the related EMDAS system for customs obligations and service delivery. This commitment to digital accessibility ensures businesses can continue to efficiently manage their tax and reporting requirements online.
Key Takeaways:
* Qualified Tools Required: Outsourced accountants must use a qualified electronic identification tool to access EDS.
* Explicit authorization: Client authorization is essential, either electronically or in person.
* No Notarization Needed: A power of attorney does not need to be notarized for accountant authorization.
* Security Focused: The changes are driven by a broader initiative to enhance the security of Latvian state information systems.
* High service Availability: the vast majority of SRS services remain readily available online.