Latvia is gearing up for the mandatory adoption of e-invoicing. The Ministry of Finance has proposed a legislative draft titled ‘Amendments to the Accounting Law’ (24-TA-438), which mandates the use of e-invoicing. This initiative aims to streamline and standardize processes, thereby enhancing efficiency for both businesses and the public sector. 

This draft legislation impacts all businesses registered for VAT purposes in Latvia, as well as the governmental sector. Consequently, the Ministry of Finance has devised a two-phase implementation plan for companies required to adopt these e-invoicing systems: 

  • From 1 January 2025: e-invoicing will be mandatory for any transaction with the public administration, i.e. in the G2G (Government to Government), B2G (Business to Government) and G2B (Government to Business) areas. 
  • From 1 January 2026: it will be mandatory for the B2B (Business to Business) area. 

Effective 1 January 2026, it will be mandatory to submit electronic invoice data to the State Revenue Service (SRS). This data will be transmitted through a centralized portal and will encompass information from both government suppliers and taxpayers. 

The standard for electronic documents will be XML, adhering to the Peppol (Pan-European Public Procurement Online) BIS Billing 3.0 specifications. This standard is widely used by national and European public administrations to standardize communications with private entities operating within Europe. Consequently, Latvia’s centralized tax system will simplify fiscal processes for its institutions, companies, and taxpayers, provided that EU interoperability requirements, such as EN 16931-1:2017, are met. 

The MySPV tool, developed by Auxadi, can streamline processes and help you in your international expansion to Latvia and other countries with a high level of digitalization in their tax processes. Contact us to find out more.

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Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

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