Digitalisation is reshaping the way invoices are issued, exchanged and reported – and Latvia is firmly on that path. At Telema, we believe it’s crucial for our clients and partners to stay ahead of regulatory change. In this blog post we’ll explain what the e-invoicing mandate for business-to-government (B2G) transactions in Latvia involves, what the upcoming reporting requirement from 1 January 2026 means, and what you should do now.

What’s in place today

Since 1. January 2025, Latvian-registered businesses issuing invoices to state and municipal budget institutions (public sector entities) must send structured electronic invoices. 

These e-invoices must comply with the European standard EN 16931 (via XML/PEPPOL format) and be submitted via approved channels such as the national e-platform “E-adrese” or through certified service providers. The aim is to replace paper or unstructured formats (like generic PDFs) for public sector invoicing and to reduce manual handling and processing errors.

The upcoming change: reporting obligation from 1 January 2026

From 1 January 2026, Latvia introduces the requirement to submit e-invoice data to the tax authority (State Revenue Service (Latvia) – SRS) for transactions with public sector entities (G2G, B2G) and budget institutions.
In practice, this means that it’s not just about issuing the e-invoice – the invoice data (structured elements) must be reported to the tax authority within the required timeframe, enabling real-time (or near-real-time) oversight and improved compliance.
While the full B2B e-invoicing and reporting obligation has been postponed from its earlier target, this first step for public-sector transactions is already upon us.

What this means for your business

• Compliance is mandatory: If you supply goods or services to Latvian public sector entities (state, municipal budget institutions), you must already use structured electronic invoicing (since January 2025) and you must prepare for the reporting obligation from 2026. 
• Operational & technical readiness: The transition from paper or unstructured invoices (PDF/email) to structured e-invoices entails changes in your invoicing system, data capture, exchange channel and archival. You must ensure your system can generate e-invoices compliant with EN 16931 and exchange via approved channels.
• Preparing for extended scope: While the full B2B mandate has been moved to 2028, the 2026 reporting step means you’ll want to be ready now – this is not just a B2G or public-sector exercise, but a stepping stone to broader reform.
• Competitive advantage: Businesses that adopt and adapt early gain a smoother transition, better operational control, and fewer last-minute burdens.

How Telema can help

At Telema, we support businesses in navigating cross-border compliance, invoicing reforms and digitalisation. With Latvia’s e-invoicing and reporting changes, our expertise can help you:

• Understand the standards, formats and permissible channels for e-invoicing in Latvia.
• Assess your readiness and build a practical roadmap for migration to structured e-invoicing and reporting.
• Align your internal workflows, technology and stakeholders (invoicing, finance, IT) to the new model.
• Mitigate risk of disruption, invoice rejections, delayed payments or audit issues as Latvia’s regime evolves.

Conclusion

Latvia’s move to mandatory structured e-invoicing for public-sector transactions (B2G) is already in force from January 2025, and the next milestone – mandatory data reporting to the tax authority – arrives on 1. January 2026. For suppliers to Latvian public entities, this is a clear signal: the time to act is now.

If you’re a Latvian company  supplying to the Latvian public sector (or plan to), preparing now turns regulatory compliance into operational advantage: smoother invoicing, faster payments, fewer errors and better audit-readiness. Telema is ready to help when you are.

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