The Latvian government proposes VAT changes for 2026, adjusting reduced rates on publications and initiating a pilot project to lower VAT on essential food items. The Latvian government has proposed changes to the VAT Law as part of the 2026 Budget. The amendments aim to adjust reduced VAT rates for publications and certain essential food products. If approved, the reduced 5% VAT rate will apply... Read more

Latvia is digitizing invoicing and reporting for businesses and government in phases. From January 1, 2025, all invoices to public authorities must be electronic. By January 1, 2026, e-reporting for government transactions will be mandatory, with voluntary B2B e-invoicing starting. Complete B2B e-invoicing will be required by January 1, 2028. Invoices will follow a structured XML format and must b... Read more

In Latvia, catering companies selling outside their main location, such as at events, must register these activities with the State Revenue Service (SRS) and use a cash register. Read more

Latvia is phasing in mandatory e-invoicing and real-time reporting, starting with B2G e-invoices already required and expanding to government-related e-reporting in 2026. By 2028, all B2B invoices between Latvian-registered businesses must be electronic and transmitted to the State Revenue Service for near real-time oversight Latvia is moving forward with its plan to digitize invoicing and reporti... Read more

Latvia has approved a temporary 12% VAT rate on essential foods like milk, bread, poultry, and eggs—excluding ultra-sterilized milk—effective July 1, 2026, to June 30, 2027, pending parliamentary approval to ease rising food costs. Latvia’s government has approved a reduced value-added tax (VAT) rate of 12% on essential food products. The measure, announced earlier this week, will apply to i... Read more

Latvia’s State Revenue Service has reminded businesses that using unregistered or non-compliant cash registers can lead to heavy penalties, including fines of up to €20,000, confiscation of devices, and suspension of operations. Violations cover issues such as unauthorized software, missing Z-reports, failure to issue proper fiscal receipts, and improper data handling. From general perspective, fi... Read more