Mandatory B2G E-Invoicing in Latvia from January 2025
Sep 26, 2024
Starting on January 1, 2025, Latvia will make e-invoicing mandatory for business-to-government (B2G) transactions as part of a broader effort to combat the shadow economy and increase transparency across all sectors. This initiative will be expanded in 2026 to include business-to-business (B2B) transactions. The invoices must then be submitted also to the State Revenue Service (SRS) after issuance.
How to send e-invoices in Latvia?
In Latvia, writings on the transition to e-invoicing often refer to the Peppol framework, and draft laws state that transmitted e-invoices must comply with the Peppol BIS Billing 3.0 standard. However, it is important to note that it is not possible to send invoices to public sector companies via the Peppol network because they lack connectivity to the Peppol network.
To send e-invoices to the public sector, integration with Latvia’s e-Address platform is required. The tax authority also wants to have an overview of all e-invoices, and once the e-Address connection is established, this is automatically ensured. However, companies that do not cooperate with the public sector and choose other channels for sending e-invoices must connect to the Latvian Electronic Declaration System (EDS), which serves as a platform for submitting e-invoices and other tax documents to the Latvian Tax Authority.
Therefore, companies must establish connections either with the e-Address or EDS to comply with the new e-invoicing requirements. Several service providers in Latvia offer e-invoicing solutions. This includes Telema, whose reliable and user-friendly service helps companies easily adapt to the new regulations and smoothly transition to e-invoicing.
Important Deadlines for Preparing for E-invoicing in Latvia
January 1, 2025: The obligation to send e-invoices comes into effect if you do business with the Latvian public sector. Integration with Latvia’s e-Address is required -> e-invoices must be transmitted there starting from January 1, 2025.
January 1, 2026: The obligation to send e-invoices to everyone, both the private and public sectors, comes into effect. Integration with the Latvian Tax Authority’s Electronic Declaration System (EDS) is required to transmit all e-invoices there.