Latvia has formalized its e-invoicing framework through a Cabinet Regulation effective January 2026, defining permitted exchange channels and mandatory reporting to the State Revenue Service (SRS) to standardize and centralize invoice data. Mandatory structured XML e-invoicing (UBL 2.1 / Peppol BIS Billing 3.0) applies to B2G, G2G, and G2B from 1 January 2026, with voluntary B2B reporting until th... Read more

Latvia has established a new Tax and Customs Police to investigate tax evasion, smuggling, and other financial crimes, transferring oversight from the State Revenue Service to the Ministry of the Interior for closer alignment with national law enforcement. The reform aims to strengthen cooperation with security agencies, modernize financial crime enforcement, and ensure compliance with both nation... Read more

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 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

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