On Tuesday, the 29th of October, Latvian parliament’s Budget and Finance Committee submitted for the final reading amendments prepared by the Ministry of Finance for the Accounting Law, which provide for making the use of e-invoices mandatory starting with the 1st of January 2026.
The legislative draft was previously granted urgency. The Saeima plans to review it on the 31st of October.
The amendments will determine the legal framework for the source document or invoice issued to the recipient of the goods or services for payment. It is planned that from the 1st of January, 2026, all companies registered in Latvia will be obliged to draw up a source document, which will be issued for payment for a product or service, as a structured electronic invoice (e-invoice).
In addition, transitional provisions stipulate that from the 1st of January 2025, a company registered in Latvia will issue an invoice to the budgetary authority in the form of an e-invoice. Such a solution is provided for in the draft law in order to promote the efficient performance of public sector functions and ensure the automation of possible functions. This would also make the digitisation of accounting processes more efficient, including in connection with the establishment of the Single Service Centre in the public administration.
In order to determine the procedure for the circulation of the e-invoice, including technical data exchange routes, ways of delivery and receipt, necessary adjustments to the e-invoice address and other technical aspects of the circulation of the e-invoice, the law will give a delegation to the Cabinet of Ministers to issue regulations by the 1st of July 2025, which will determine the procedure for the circulation of the e-invoice.
The Cabinet of Ministers regulations will include that in the B2B (Business to Business) segment of taxpayers a solution for decentralised e-invoice circulation will be implemented using three electronic means of sending. These include free national delivery solutions (e-address), PEPPOL (Pan European Public Procurement On Line) service providers or operators (paid service), as well as individually between taxpayers, namely the invoice provider and the recipient agreeing on a circulation channel, for example via e-mail or direct software integration interfaces.
In order to enable taxpayers to comply with the requirement for mandatory circulation of domestic e-invoices and transfer of e-invoice data to the State Revenue Service (VID) from the 1st of January 2026, free data transmission channels will also be provided – an e-address or Electronic Declaration System (EDS) API (“Application Programming Interface”) solution or manually by uploading the e-invoice file to the EDS interface.