Latvia - Implementation of Mandatory B2G and B2B E-invoicing

Latvia is taking firm steps to implement rules and regulations for mandatory B2G and B2B e-invoicing. This comes as part of Latvia's efforts to conduct further digital transformation, align with EU standards for digital documentation, and combat the shadow economy.

Earlier, the Ministry of Finance proposed amendments to the Accounting Law, including those for implementing mandatory B2G and B2B e-invoicing. These amendments were open for public comment and will now be discussed at the Cabinet of Ministers meeting, underscoring the value of stakeholder input in this process. 

Implementation Timeline

Proposed amendments to the Accounting Law state that the rollout of mandatory e-invoicing rules will be completed in two phases. The first phase, scheduled for January 1, 2025, involves implementing mandatory e-invoicing rules for transactions between the state administration and businesses. This includes all government-related transactions, such as B2G, G2G and G2B.

The second phase, scheduled for January 1, 2026, mandates implementing mandatory B2B e-invoicing rules. This means that starting in 2026, all invoices for B2B transactions will have to be submitted electronically to the State Revenue Service (SRS).

Similarly to other EU Member States, Latvia adopted the Peppol invoice system for its e-invoicing framework, and e-invoices will be submitted in XML format.

Conclusion

At this stage, it is essential to state that these rules have yet to be adopted and that the final version of regulations and technical specifications is still pending. Once the amendments to the Accounting Law and Technical Requirements Specification document are adopted and published, the rollout timeline and phases will be more confident.

Nevertheless, it is only a matter of time before these proposed amendments become law. Therefore, all companies operating in the Latvian market that might be affected by these requirements have enough time to familiarize themselves with and prepare for the new mandatory e-invoicing rules.

Source: State Chancellery - Amendments to the Accounting Law, State Chancellery - Public Consultation