Latvian Parliament Passes Law Introducing Mandatory E-Invoicing

The Latvian Parliament has introduced mandatory structured e-invoicing and digital reporting requirements for B2G and B2B transactions.

Timeline

E-invoicing will be mandatory for transactions between businesses and the public sector (B2G) starting on January 1, 2025, with the requirement extending to B2B transactions for all companies registered in Latvia by January 1, 2026.

Impact

On October 31, 2024, the Latvian Parliament passed amendments to the Accounting Law, introducing mandatory e-invoicing for transactions between businesses and the public sector (B2G) starting on January 1, 2025, and for B2B transactions starting on January 1, 2026.

A structured electronic invoice is defined as an invoice that is issued, sent, and received in a format allowing automatic electronic processing, compliant with EU standards LVS EN 16931-1:2017 and LVS CEN/TS 16931-2:2017.

Starting in January 2026, companies will also be required to report structured e-invoice data to the State Revenue Service.

The Cabinet of Ministers will establish detailed procedures for implementing the e-invoicing and digital reporting system by May 2025.