Fiscal subject related
Since the start of the year, Latvia has introduced a new institution – the Tax and Customs Police – tasked with the country’s ability to investigate tax and customs-related crimes. The Tax and Customs Police will focus on tackling tax evasion, smuggling, and other financial crimes. Oversight has shifted from the State Revenue Service to the Ministry of the Interior, ensuring closer alignment with national law enforcement structures.
The new body is expected to work more effectively with other police and security agencies. Previously, tax and customs investigations were handled by the Tax and Customs Police Department within the State Revenue Service. The creation of a separate institution reflects the government’s commitment to reinforcing the fight against economic crime and ensuring compliance with both national and EU regulations. Officials emphasize that the reform is designed to modernize Latvia’s approach to financial crime, ensuring that the country remains aligned with European standards while protecting state revenue and fair competition.
Other news from Latvia
Changes in VAT rates effective from January 1, 2026, in Latvia
Latvia
Author: Nikolina Basić
From 1 January 2026, Latvia will implement VAT reductions including a 5% rate for books and media in specified EU, OECD, and national languages, and a permanent 12% rate for fresh fruits and vegetables to support consumers and domestic culture. Additionally, a one-year pilot program (July 2026–June 2027) will reduce VAT from 21% to 12% on essential food items such as bread, milk, poultry, and egg... Read more
Latvia Delays Mandatory B2B E-Invoicing to 2028, Giving Businesses More Time to Prepare
Latvia
Author: Nikolina Basić
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... Read more
Latvia plans VAT changes for Publications and Food
Latvia
Author: Nikolina Basić
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
E-invoicing in Latvia starting January 2026
Latvia
Author: Nikolina Basić
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
Does catering business for off-site sales must capture sales via cash registers in Latvia?
Latvia
Author: Nikolina Basić
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
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Already subscriber? LoginE-invoicing in Latvia starting January 2026
Latvia
Author: Nikolina Basić
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