Draft Law in Latvia for Mandatory B2B Electronic Invoicing
On April 16, 2025, the Latvian Parliament referred a draft law titled “Amendments to the Accounting Law” to the Budget and Finance (Tax) Committee for review. This proposal suggests delaying the implementation of mandatory B2B e-Invoicing from January 1, 2026, to January 1, 2027.
As of now, the draft law is under review by the Budget and Finance (Tax) Committee and has not yet been approved. The outcome will determine whether the B2B e-Invoicing mandate will be postponed to 2027.
Latvia is gearing up for the mandatory adoption of electronic invoicing. The Ministry of Finance has drafted a bill, "Amendments to the Accounting Law" (24-TA-438), which mandates the use of electronic invoices. The mandate will apply to the public sector and businesses registered in Latvia for VAT purposes.
On April 16, 2025, the Latvian Parliament referred a draft law titled “Amendments to the Accounting Law” to the Budget and Finance (Tax) Committee for review. This proposal suggests delaying the implementation of mandatory B2B e-Invoicing from January 1, 2026, to January 1, 2027.
The postponement of mandatory B2B e-invoicing in Latvia is due to several factors: the government's failure to issue regulations on time, the need for businesses and software providers to adapt their systems amid uncertainty about the scope of e-invoices, and the urgency to revise VAT legislation to ensure proper input tax deduction.
As of now, the draft law is under review by the Budget and Finance (Tax) Committee and has not yet been approved. The outcome will determine whether the B2B e-Invoicing mandate will be postponed to 2027.
It's important to note that the B2G (Business-to-Government) e-Invoicing mandate remains scheduled to take effect on January 1, 2025.
e-Invoicing Timeline
- January 1, 2025: Electronic invoicing will be mandatory for transactions between the state administration and businesses, including G2G (Government to Government), B2G (Business to Government), and G2B (Government to Business).
- January 1, 2027 (to be confirmed): The mandate will be expanded to cover B2B (Business to Business) transactions.
The submission of electronic invoice data to the State Revenue Service (SRS) will become mandatory. The SRS will collect this data through a centralized portal from both public sector suppliers and taxpayers.
Electronic invoices must be in XML format and comply with the Peppol BIS Billing 3.0 standard.
The technical specifications for the electronic invoicing exchange channel with the tax authority and other document exchange details have yet to be finalized.
