Draft Law in Latvia for Mandatory B2B Electronic Invoicing by 2026
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.
The rollout of electronic invoicing will take place in two phases:
- Beginning on 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).
- Beginning on January 1, 2026: The mandate will be expanded to cover B2B (Business to Business) transactions.
Starting January 1, 2026, 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.
