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 system will feature real-time reporting to strengthen VAT compliance and improve financial transparency.
- The e-invoicing requirement is expected to become fully operational by December 30, 2025.
The Ministry of Finance in Latvia has recently unveiled a proposed strategy to tackle the black market economy (covering the years 2024 to 2027). This strategy features the introduction of a mandatory e-invoicing system for business-to-business (B2B) transactions.
Under the proposed strategy, the creation and exchange of structured electronic invoices for B2B transactions will be obligatory. The aim of this move is to simplify the invoicing process and to implement a digital solution that facilitates the efficient management and exchange of e-invoices. The system will also incorporate real-time reporting capabilities, intended to improve the oversight and adherence to VAT payment rules.
The government plans to have its mandatory e-invoicing system fully operational by December 30, 2025.
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 Latvian e-invoicing system is expected to become fully operational by December 30, 2025. Businesses are encouraged to begin preparing now to ensure a smooth transition to digital invoicing and real-time VAT reporting once the system is implemented.
