Latvia Delays Mandatory B2B E-Invoicing to 2028, Giving Businesses More Time to Prepare

Latvia has postponed mandatory B2B e-invoicing from 2026 to 2028, giving companies—especially SMEs—more time to prepare. From 2028 onward, all VAT-registered businesses will need to issue XML-based e-invoices through the VID system, while B2C transactions remain exempt

The Latvian Parliament has decided to postpone the mandatory introduction of B2B e-invoicing from 1 January 2026 to 1 January 2028. The move comes after feedback from businesses, especially small and medium-sized enterprises, who asked for more time to prepare for digital invoicing.

Since 1 January 2025, e-invoicing has already been mandatory for transactions with public sector entities. From 2028, all VAT-registered companies – including foreign firms with a Latvian VAT number – will need to issue e-invoices for domestic transactions.

Businesses will be able to use:

·         PEPPOL BIS Billing 3.0

·         LVS EN 16931-1+A1+AC Both are XML-based formats. All eInvoices must be sent through the VID system to be legally valid.

Timeline:

·         1 January 2026 – Voluntary B2B e-invoicing begins.

·         30 March 2026 – The official e-address platform opens for voluntary reporting.

·         1 January 2028 – Mandatory B2B e-invoicing for all VAT-registered businesses.

B2C transactions remain exempt.