A tax assurance is an arrangement that ensures that, if the importer fails to adhere, the loan will be paid back by a third party. In essence, a promisor is a party who pledges to take on the obligation if the debtor is incapable to make timely transactions to the state. In cases involving excise taxes, banks typically serve as insurance.

Any bank papers or emails in your title or the name of your funder may serve as monetary guarantee documents. The document must be submitted with a letter describing the sponsor’s connection to the individual and outlining the funding promise.

Types of guarantees

The following are the types of guarantees:

One-time excise duty guarantee

a pledge of funds made by the taxpayer that secures full payment of any excise tax owed if it is not paid at the time the products are received. A security deposit, an insurance package, or a credit institution guarantee can be used as the pledge. For the one-time acquisition of products from another Contracting Party, a one-time indirect taxes guarantee is necessary. Such a warranty may also be required in specific circumstances, such as when sending goods under a delayed tax payment program.

The one-time assurance is a digital document with a 30-day expiration date. Fill out the EDS request form for revocation of the license or evidence of the safety deposit after the deal is complete. Apply via EDS to get the insurance deposit.

General guarantee 

If special permission has been obtained for taxable items under a delayed duty payment scheme, the claimant must offer a monetary commitment. A safety deposit or a loan agency pledge can be used as assurance. Oil products, cigarette products, and alcoholic drinks are among the categories that most frequently demand general assurances. The taxpayer is responsible for any potential liability that was not settled by the Law on Tariff Rates.

The general agreement card is a digital record that is effective for as long as the security plan is in effect. It must not, nevertheless, go beyond 12 months from the period of issuance. The general safety license is always acceptable in the event of a money down payment.

Guarantee certificate 

The document is directed at the tax inspector and other official bodies. The paper includes all the required personal data for a surety provider. 

In the papers, it is further acknowledged that this assurance will not be impacted in any manner by time, condition, or failure to recover or claim compensation of any postponed sum. In papers, the monetary threshold is indicated. The Guarantor’s total obligation under this assurance for duties and taxes postponed in any given month shall not be greater than that sum.

To acquire a taxation guarantee card:

  • Fill out the EDS request paper, 
  • Send the insurance contribution to Cabinet bank LV31TREL8135450000000 (SWIFT TRELLV22), 
  • Present an insurance plan, 
  • Submit the transaction confirmation paper, or
  • Assure a lending institution is in order. 

Institutions functioning as guarantors

There are the following companies and banks that offer the facility to provide the warranty in delayed tax payments. These companies are: 

  • Signet bank
  • Bank Citadele
  • The Hannover insurance firm (Worcester, Massachusetts, United States)
  • BTA Baltic insurance firm
  • Balta AAS (Riga, Latvia) 
  • Phillip Morris international insurance (Ireland) 
  • SEB bank 
  • LPB bank
  • Ergo Insurance SE
  • OP corporate bank (Finland). 

Ending note 

A promisor is essentially a party who promises to assume the debt if the debtor is unable to make timely payments to the state. Banks frequently act as insurance in circumstances involving excise taxes. When the deal is done, fill out the EDS request form to have the license revoked or to show proof of the security deposit. In the event of a financial down payment, the general safety license is always appropriate. Security certificate The letter is addressed to the tax inspector and other government agencies. In the papers, it is further stated that the passage of time, the fulfillment of a condition, or the failure to collect or obtain payment of any delayed sum will not in any way affect this agreement.