Fiscal subject related
General information
Latvia is moving forward with its plan to digitize invoicing and reporting for businesses and government entities. The transition is happening in phases, with key changes set to take effect on January 1, 2026.
Already in Effect (Since Jan 1, 2025): All invoices sent to Latvian public authorities (B2G) must be electronic and follow a structured format. Government institutions also exchange invoices electronically among themselves.
Next Phase (Starting Jan 1, 2026): E-reporting becomes mandatory for government-related transactions. Businesses can start using the official platform to voluntarily exchange B2B e-invoices. Full B2B e-invoicing will become mandatory in 2028.
Final Phase (From January 1, 2028): All invoices between Latvian-registered businesses (B2B) must be electronic and submitted to the State Revenue Service (VID) in near real-time.
All Latvian-registered companies and self-employed individuals must comply once the rules take effect. Consumers (B2C): Not affected. Paper or standard electronic invoices are still allowed.
Cross-border Transactions are not included in the current mandate.
Technical Details:
· Invoice Format: Structured XML files using the European standard EN 16931 and PEPPOL BIS Billing 3.0.
· Submission Channels: Businesses can use a free government portal, certified service providers, or direct transmission. All invoice data must reach the VID.
· Real-Time Reporting: Each invoice is automatically sent to the VID for tax and audit purposes.
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