What are fiscal regulations in Latvia?

Latvia’s fiscalization system, introduced in 2014 and made mandatory in 2017, ensures secure and transparent recording of taxes and payments under the Law on Taxes and Duties and the VAT Act. Key rules include Cabinet Regulation No. 95 on technical requirements for fiscal devices and Cabinet Regulation No. 96 on their use, covering registration, data transmission, and compliance procedures.

Fiscalization journey in Latvia began in 2014. It is a system designed to promote transparency and accountability in the registration of taxes and payments. The reform, rooted in the Law on Taxes and Duties and the Value Added Tax (VAT) Act, marked a turning point in how businesses report and record financial transactions.

While the legal framework was established in 2014, the mandatory implementation of fiscalization was enforced starting in 2017, giving businesses a transitional period to adapt to the new requirements.

Important regulations are the Cabinet Regulations issued on 11 February 2014 wich regulates the technical and procedural foundation for the system, and also Cabinet Regulation No. 95: “Regulations on the Technical Requirements for Electronic Devices and Equipment of Registration of Taxes and Other Payments”. — This regulation specified the standards for fiscal devices, ensuring secure and tamper-proof recording of transactions.

Cabinet Regulation No. 96: “Procedure of the Use of Electronic Devices and Equipment of Registration of Taxes and Other Payments” — It outlined the operational procedures for businesses, including device registration, data transmission, and compliance protocols.