Key takeaways
- Latvia plans to introduce a mandatory e-invoicing system for all B2B transactions as part of its 2024–2027 anti–black market strategy.
- The plan first promised real-time reporting. Under the final rules, companies send each e-invoice's data to the State Revenue Service (VID) within five working days.
- The e-invoicing requirement was first planned for December 30, 2025, but B2B e-invoicing is now mandatory from January 1, 2028.
In short: Latvia plans mandatory B2B e-invoicing as part of its strategy against the black market economy for 2024 to 2027. Businesses would have to create and exchange structured electronic invoices, with real-time reporting to support VAT rules. The government aimed to have the system fully running by December 30, 2025.
Update (October 2026): Latvia postponed the B2B mandate. On June 5, 2025, the Saeima adopted amendments to the Accounting Law that make structured e-invoices mandatory for all companies from January 1, 2028. Until then, B2B e-invoicing is voluntary. E-invoices have been mandatory in transactions with state budget institutions since January 1, 2025 (source: LV portāls). The final model has no real-time reporting. Latvia uses a decentralised exchange through the state e-address platform or Peppol and other operators. From 2028, companies must send each B2B invoice's data to the State Revenue Service (VID) within five working days (source: European Commission).
Latvia's Ministry of Finance has unveiled a proposed strategy to fight the black market economy for the years 2024 to 2027. A key part of this plan is a mandatory e-invoicing system for business-to-business (B2B) transactions. For a full country overview, see our Latvia VAT manual.
Under the plan, businesses must create and exchange structured electronic invoices for B2B transactions. The goal is to make invoicing simpler. It also brings in a digital tool to manage and share e-invoices with ease. The system will include real-time reporting, to improve oversight of VAT payments and compliance with the rules.
The government plans to have its mandatory e-invoicing system fully running by December 30, 2025.
What does this mean for businesses?
Companies registered in Latvia have until January 1, 2028 to switch to structured e-invoices for B2B sales. Those that supply state budget institutions already need to use e-invoices.
- Choose software that can send and receive structured e-invoices.
- Use the voluntary period to test e-invoicing with key customers and suppliers.
- Plan system and process changes well before the 2028 deadline.
Which businesses must issue e-invoices in Latvia?
From January 1, 2028, every entity covered by Latvia's Accounting Law must issue structured e-invoices for domestic sales of goods and services. The duty comes from a new paragraph in Article 11 of the Accounting Law, approved by the Saeima on October 31, 2024.
According to the State Revenue Service (VID), some transactions fall outside the requirement:
- sales where payment is shown by a cash register document, such as a receipt, e-receipt or ticket;
- invoices to private individuals, which can stay in their current format;
- invoices generated in the National Health Service or State Employment Agency systems;
- transactions related to state secret objects.
Advance invoices do not have to be structured e-invoices. Corrective invoices do, and they must refer to the number of the original e-invoice.
What format and delivery channels will Latvian e-invoices use?
Latvian e-invoices are XML files that follow UBL 2.1 and the Peppol BIS Billing 3.0 specification. The rules are in Cabinet Regulation No. 749 of December 9, 2025, which took effect on January 1, 2026 (source: VID).
The supplier and the customer agree on how to exchange invoices. The options are:
- E-address (e-adrese): the free state channel, if the account is activated.
- Peppol service providers: paid operators that deliver invoices between systems.
- Other agreed channels: for example, email or a direct link between accounting systems.
Whatever the channel, the invoice must also be readable on screen and printable on paper. The Latvija.lv portal lets users upload an XML file, create an e-invoice, and download it as XML or PDF.
Do businesses have to send e-invoice data to VID?
Yes, for B2B invoices from 2028. Until then, companies may report the data voluntarily. The data goes to VID through the e-address, a service provider linked to the VID API, or VID's Electronic Declaration System.
Each invoice is reported once, no later than five working days after it is sent. For example, an invoice sent on a Monday must reach VID by the following Monday, if there is no public holiday in between.
Businesses that break the e-invoicing rules face a warning or a fine of up to 86 fine units under Article 43 of the Accounting Law.
Key dates
- January 1, 2025: E-invoices mandatory in transactions with state budget institutions.
- June 5, 2025: The Saeima adopts the delay of the B2B mandate.
- January 1, 2026: Cabinet Regulation No. 749 takes effect. Invoice data from transactions with budget institutions must be sent to VID, and other companies may report voluntarily.
- January 1, 2028: Structured e-invoices mandatory for all companies registered in Latvia.
How Taxually handles this
Taxually’s e-invoicing API sends structured invoices to each country’s clearance platform, such as Italy’s SDI, Poland’s KSeF and Peppol networks, covering 32 countries from one integration. The VAT returns those invoices feed into are filed through CrossTax on the same platform.
Related guides
Frequently asked questions
What is Latvia’s new mandatory e-invoicing system?
Latvia’s Ministry of Finance has proposed a mandatory e-invoicing system for all B2B transactions as part of its 2024–2027 black market reduction strategy. The system will require businesses to create and exchange structured electronic invoices, helping improve transparency and VAT compliance.
When will Latvia’s e-invoicing system become mandatory?
The government first aimed for December 30, 2025, but Latvia postponed the B2B mandate. Structured e-invoices are now mandatory for all Latvian companies from January 1, 2028, and voluntary until then.
Are e-invoices already mandatory for public sector deals in Latvia?
Yes. E-invoices have been mandatory in transactions with state budget institutions since January 1, 2025.
What should businesses do before 2028?
Choose software that can send and receive structured e-invoices, and use the voluntary period to test it with key customers and suppliers.
Which format do Latvian e-invoices use?
Latvian e-invoices are XML files that follow UBL 2.1 and the Peppol BIS Billing 3.0 specification, as set by Cabinet Regulation No. 749 of December 9, 2025.
Do invoices to consumers have to be e-invoices in Latvia?
No. Invoices to private individuals are not covered and can stay in their current format. Sales shown by a cash register receipt or ticket are also outside the requirement.
How quickly must e-invoice data be reported to VID?
Each e-invoice is reported once, no later than five working days after it is sent. Reporting is voluntary for B2B invoices until the 2028 mandate.
