The truth about e-invoice format in Latvia

There is a common misunderstanding in Latvia regarding e-invoicing. Many believe that invoices only in PEPPOL UBL BIS 3.0 format qualify legally for payment. Some even think that businesses now need to send extra invoices in PEPPOL UBL format on top of their existing EDI invoices. This is simply not true.

What does the law actually say?

The Latvian law establishes PEPPOL UBL BIS 3.0 as the official e-invoice standard. This means that if an invoice is sent in this format, the recipient must accept it – they cannot refuse or ignore it. In other words, it must be processed and paid if it meets the required standards.

However, this does not mean that PEPPOL UBL is the only format companies can use. Businesses are free to accept and pay invoices in any other e-invoice format. The law only ensures that PEPPOL UBL invoices cannot be rejected just because of their format.

To bring clarity to this situation, we contacted the State Digital Development Agency, who confirmed our understanding:

“In Latvia, as in other European Union countries, the standard format adopted is Peppol BIS Billing 3.0 (UBL 2.1 XML format), which is aligned with EN 16931. To ensure compliance with the 2026 requirements, while maintaining the existing EDIFACT data exchange, a transition solution can be developed to convert EDIFACT invoices to UBL 2.1 XML format. This would satisfy regulatory requirements and facilitate the transfer of e-invoice data to the SRS in UBL 2.1 XML format. While parties may mutually agree to use alternative e-invoice formats for their own transactions, the SRS will exclusively accept invoices in UBL 2.1 XML format.”

Many companies are implementing UBL format unnecessarily

Due to the fuzzy wording in the law, many companies are now investing time and resources into implementing PEPPOL UBL, even when it is not necessary. The lack of clarity has led businesses to believe they must switch entirely to UBL, despite their current EDI invoicing systems already being valid and compliant. This results in meaningless investments, unnecessary costs, and operational inefficiencies.

Additionally, since both the law and the PEPPOL UBL standard may change in the future, companies that rush into full UBL implementation now may find themselves forced to redevelop everything again, creating even more costs and disruption down the line.

Companies Already Using an E-Invoice Operator Are Compliant

Companies that are using an e-invoice operator like Telema are already compliant with the Latvian law and EU requirements. They can start sending and receiving e-invoices immediately and are also aligned with upcoming requirements such as eAdrese and SRS (State Revenue Service) integration. The operator ensures everything is handled according to the rules.

Format Conversion Is Handled by the Operator

An e-invoice operator guarantees that each invoice is delivered in the correct format required by the recipient—whether that recipient is another business, a public institution, or the State Revenue Service. This means that companies and their ERP providers do not need to implement PEPPOL UBL themselves. They can continue using the formats that are most convenient to them, and the operator will handle all necessary conversions.

For example, if a company uses SAP, its natural e-invoice format is IDOC. The e-invoice operator converts this IDOC format into EDIFACT for a recipient that prefers EDIFACT, and at the same time also generates a copy of the invoice in PEPPOL UBL format and sends it to the SRS. This way, the sender doesn’t need to worry about any format requirements or legal obligations—the operator takes care of it.

What does this mean for Telema EDI users?

Companies sending or receiving EDI invoices through Telema can continue using them just as they do now – they are fully compliant with the law. There is no requirement to send extra invoices in PEPPOL UBL format if they are already using another structured format that works for their operations.

EDI users only need to sign up for an eInvoice Sending and/or eInvoice Receiving service, and they will instantly be compliant with all current formats and channels, including for communication with government systems.

For suppliers sending invoices in PEPPOL UBL format, Telema will convert them into the recipient’s preferred EDI format. This ensures that businesses receive, process, and pay invoices just as before, without disruption.

Key benefit of using an EDI/e-invoice operator

EDI operators like Telema simplify invoicing. They allow businesses to exchange invoices in different formats while ensuring compliance with legal requirements. Suppliers can send invoices in PEPPOL UBL, and Telema will convert them into the format their customers prefer and vice versa. This eliminates confusion and makes invoicing seamless for everyone.

 In summary

• PEPPOL UBL invoices must be accepted and paid if received.
• Businesses can still use and pay invoices in other formats.
• Companies using e-invoice operators are already compliant with Latvian and EU e-invoicing rules.
• E-invoice operators handle format conversions and legal compliance, including communication with the State Revenue Service and eAdrese.
• ERP providers and businesses don’t need to implement PEPPOL UBL themselves.
• EDI users only need to activate the e-invoice service to become fully compliant.
• Using one channel and one format is the most efficient approach – let the operator handle the rest.
• Unnecessary UBL implementation can be avoided by using an e-invoice operator that handles format conversions.
• The unclear wording of the law is causing unnecessary investments, which may become obsolete when the rules change again.
• Although Latvia has postponed the B2B e-invoicing mandate to 2028, companies using Telema don’t have to wait – they can start getting value from e-invoicing immediately.

Understanding these rules helps businesses avoid unnecessary complications and continue invoicing efficiently!

Contact us to start sending and receiving eInvoice right away