Regulatory updates - Latvia

On 12 October 2021, the Cabinet of Ministers revised and approved the informative report set by the Ministry of Finance on implementing an e-invoicing system. The key novelty of this report is the introduction of mandatory e-invoicing in the B2B and B2G segments starting from 2025.

The e-invoice exchange framework

The exchange of e-invoices will continue to follow the European Standard on e-invoicing. Peppol e-delivery network will be adopted as a single standard for sending and receiving e-invoices.

Current e-invoicing status in Latvia

At the moment, taxpayers in Latvia can issue and exchange invoices and other documents in any format, as the country follows the post-audit model in the B2B sector. However, on the B2G side, since April 2020, all contracting authorities in Latvia have been obliged to receive and process electronic invoices in public procurement as per the Directive 2014/55/EU.

There is no single mandatory infrastructure for e-invoice exchange in Latvia, but the following options are available for suppliers to public entities:

• Using the e-address - a tool for secure communication with Latvian public administrations
• Using the e-services and options provided by the city of Riga Municipality;
• To connect with the central government, suppliers can use the platform ePakalpojumi;
• Any other method based on agreement with trading parties.

To adopt the newly proposed e-invoicing framework in the country, the work on the regulatory procedures and technology practices is anticipated to start in the near future.

Read the official announcement in Latvian here.