The "Grāmatvedības likums" (Accounting Law) in Latvia mandates structured electronic invoices for all transactions, except budget institutions. The law also allows businesses to convert paper accounting documents into electronic format for storage, with the Cabinet of Ministers defining the procedure for data submission. Tax declarations can be used as supporting documents for calculated tax, and tax administrations can use documents issued by them as supporting documents. The law also allows for electronic reporting to tax authorities.
Latvia: New B2B e-Invoicing and e-Reporting Requirements Effective January 1, 2026
Public
Latvia
Author: Ema Stamenković
Category:
Fiscal subject related
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1614
Content accuracy validation date:
07.03.2025
Content accuracy validation time:
10:11h
The "Grāmatvedības likums" (Accounting Law) contains a few rules about electronic invoicing and reporting:
Formatted Electronic Invoices: These are invoices that are set up, sent, and received in a structured layout designed for computer processing. They need to follow the EU norm LVS EN 16931-1:2017 and be issued based on LVS CEN/TS 16931-2:2017.
Required E-Invoicing: Starting January 1, 2026, all invoices between Latvian businesses (but not including budgetary institutions) have to be structured electronic invoices.
Exceptions:
- Transactions confirmed via documents compliant with regulations for electronic devices.
- Invoices generated in the National Health Service’s or State Employment Agency’s systems.
- State security institutions, the State Police’s financial unit, Tax and Customs Police, and the Corruption Prevention and Combating Bureau are exempt. Until the new law takes effect, the State Revenue Service’s Tax and Customs Police Department retains these rights.
Submission of E-Invoice Data: Starting January 1, 2026, the Cabinet of Ministers will establish how businesses send structured electronic invoice data to the State Revenue Service.
Electronic Confirmation: Instead of signatures, internal electronic documents can use an electronic confirmation.
Electronic Archiving: Companies can digitize their paper documents, making them legally equivalent to the originals, as long as certain requirements are met. These include things like ensuring the digital copies are accurate representations of the originals, easily readable, protected from tampering, and that the process of converting and destroying the paper documents is properly documented.
Electronic Reporting (E-reporting): This refers to the requirement that, beginning January 1, 2026, businesses must send their structured electronic invoice data to the State Revenue Service.
Tax Declarations as Supporting Documentation: This approach lets businesses use their tax declarations to log calculated tax amounts. It also enables tax and state duty authorities to utilize their own documents as supporting evidence, even when certain typical details might be absent. In addition, they have the option to make entries in their accounting records based on calculations from the state's information system.
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