Latvia is implementing mandatory e-invoicing starting in 2025 to simplify transactions, boost tax compliance, and reduce the shadow economy. The centralized model will be implemented for B2G transactions and B2B transactions in 2026. The initiative aims to reduce tax evasion, increase efficiency, and standardize EU-compliant formats. Challenges include technical upgrades, staff training, and initial costs. Non-compliance could result in fines and VAT penalties.
Latvia Embraces Digital Invoicing
Public
Other countries
Author: Ema Stamenković
Category:
General subject related
Views:
597
Content accuracy validation date:
24.04.2025
Content accuracy validation time:
08:18h
Latvia's Move to Required E-Invoicing: Embracing Digital Change
Beginning in 2025, Latvia is rolling out a requirement for electronic invoicing (e-invoicing) to make transactions smoother, improve tax collection, and shrink the underground economy. Here's a quick look at this new program, including its schedule, advantages, hurdles, and what businesses need to do to comply.
A Quick Look at Mandatory E-Invoicing
Latvia has chosen a centralized approach for business-to-government (B2G) e-invoicing. Businesses can send invoices through their enterprise resource planning (ERP) systems, specialized e-invoicing services, email, or the e-Address portal. This system is in line with European Union standards and works with formats like PEPPOL BIS Billing 3.0 and EN 16931, ensuring it can be used across borders.
When Will This Happen?
- January 1st, 2025: Businesses will have to send electronic invoices to the government.
- January 1st, 2026: Electronic invoicing will be required between businesses, and everyone paying taxes locally will need to use a specific electronic format.
What's the Legal Basis?
Changes to the Accounting Law (made on October 31st, 2024) set the stage for this. We can expect more specific rules on this by around the middle of 2025. This whole initiative lines up with a European Union rule from 2014 (Directive 2014/55/EU) and is also getting ready for another upcoming EU rule (the ViDA directive), which will let them require electronic invoicing between businesses without needing special permission.
How Will it Work Technically?
Businesses will use a decentralized system called Continuous Transaction Controls (CTC) to send reports to the State Revenue Service (SRS) as transactions happen. They can send these invoices through e-Address, PEPPOL, specialized service providers, or their own internal systems (like ERP). We'll get more of the technical nitty-gritty details towards the end of 2025.
Challenges and Preparation
Businesses face challenges like technical upgrades, staff training, and initial costs. To prepare, they should:
- Check accounting system compatibility.
- Train employees on e-invoicing.
- Consult tax experts or providers.
- Select submission platforms.
Potential Consequences of Not Following the Rules
Money Woes: You could be hit with fines as high as €2,000 if you don't issue the required electronic invoices.
Other news from Other countries
UAE Launches PINT AE v1.0.1 as Official E-Invoicing Standard Ahead of Mandate
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
OpenPeppol has released PINT AE v1.0.1, the UAE-specific specification for electronic invoicing, with technical refinements and alignment expected by early 2026. This marks a significant milestone in UAE's digital tax transformation. The most recent iteration of the UAE-specific Peppol specification for electronic invoicing, PINT AE v1.0.1, has been made available by OpenPeppol. The update adds im... Read more
New Tax Guidelines for Entities in Vietnam
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The VAT policy was altered both for VAT taxable and non-VAT taxable subjects, according to VAT Law No. 48/2024/QH15, Government Decree No. 181/2025/ND-CP, and Minister of Finance Circular No. 69/2025/TT-BTC, that started July 1, 2025. According to Government Decree No. 181/2025/ND-CP, Minister of Finance Circular No. 69/2025/TT-BTC, and VAT Law No. 48/2024/QH15, the VAT policy will change for both... Read more
Understanding VAT Regulations in the Czech Republic
Public
Author: Ema Stamenković
VAT, or "Daň z přidané hodnoty", is an indirect tax on consumption in the Czech Republic, managed by the Tax and Customs Authorities. VAT is an indirect tax on consumption that is referred to locally as "Daň z přidané hodnoty (DPH)" in the Czech Republic. At various points in the supply chain, it is used to describe the added value of products and services. The Czech Republic is a member o... Read more
Philippines: New VAT Portal for Non-Resident Digital Service Providers
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The Philippines has launched its VAT on Digital Services (VDS) portal for non-resident providers to register, file, and pay VAT. Initially, registration was via ORUS due to delays. Under Republic Act No. 12023, the rules cover a wide range of digital services used in the country, even without local presence. Providers must obtain a TIN, open a VDS account, and file quarterly returns. The BIR can a... Read more
China Clarifies VAT Rules for E-commerce and Delivery Services
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
China’s Ministry of Finance and tax authorities have clarified VAT rules for delivery and logistics services amid rapid e-commerce growth. These services fall under transportation and modern services, taxed at 9% VAT (or 3% for small-scale taxpayers), with input VAT deductions allowed. Cross-border deliveries may be zero-rated if proper customs and transport documents are provided. Firms must issu... Read more
China Proposes Major VAT Reforms for 2026, Tightening Compliance
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
On 11 August 2025, China’s Ministry of Finance and the State Administration of Taxation released the draft VAT Implementation Regulations for public comment, ahead of the new VAT Law effective 1 January 2026. Key changes include restrictions on input VAT credits (long-term assets above RMB 5m, non-VAT activities, loan-related costs), shifting annual reconciliation to enterprises, clarified cross-b... Read more
Brazil's New National E-Invoice Standard
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
From January 2026, Brazil will require the national NFS-e (Electronic Service Invoice), replacing varied municipal formats to cut costs and simplify compliance under the Consumption Tax Reform. Municipalities gain better revenue control and transparency but risk losing Union transfers if they fail to adopt. By August 2025, 1,463 had signed on, 291 were issuing NFS-e, and the Federal Revenue Servic... Read more