Latvia is moving toward a broader structured e-invoicing framework as part of its digital tax and accounting transformation. The country has already introduced mandatory e-invoicing for transactions involving budget institutions, while the full B2B e-invoicing obligation has been postponed to 1 January 2028.
The direction is now clear: businesses operating in Latvia should prepare for structured electronic invoices, XML-based formats, Peppol-aligned exchange, and electronic submission of invoice data to the State Revenue Service, known locally as Valsts ieņēmumu dienests (VID).
Latvia e-invoicing is not only about replacing paper or PDF invoices. It is about creating invoices in a structured electronic format that can be automatically processed, exchanged, reported, and stored in a compliant way. For businesses, this means ERP readiness, invoice data quality, and integration with approved digital channels will become increasingly important.
This guide explains e-invoicing in Latvia, including B2B, B2G and B2C scenarios, 2026 updates, deadlines, requirements, implementation considerations, and frequently asked questions.
What is e-Invoicing in Latvia?
E-invoicing in Latvia refers to the use of structured electronic invoices that are prepared, sent, and received in a machine-readable format. Under Latvian law, a structured electronic invoice must allow automatic and electronic processing and must comply with the European e-invoicing standard LVS EN 16931-1:2017 and the related technical specification LVS CEN/TS 16931-2:2017.
Latvia’s structured electronic invoices, locally referred to as e-rēķini, are exchanged in XML format. The XML structure is set out in Latvia’s national standard, based on the European standard EN 16931, and must comply with the Peppol BIS Billing 3.0 specification. This ensures that invoice data can be processed automatically by accounting, ERP, and public-sector systems.
Latvia’s e-invoicing framework is being introduced gradually. B2G e-invoicing is already mandatory for transactions with budget institutions. From 2026, structured e-invoice data for G2G, B2G, and G2B transactions must be submitted to VID. From 2028, e-invoicing and submission of e-invoice data to VID will apply to B2B transactions between Latvian-registered businesses.
Latvia’s e-invoicing framework is established through amendments to the Accounting Law together with related Cabinet of Ministers regulations governing the exchange of structured electronic invoices and the submission of invoice data. The Ministry of Finance of the Republic of Latvia leads this legislative process, and the operational rules are set out in Cabinet Regulation No. 749 of 9 December 2025, which also requires issuers to submit each e-invoice to VID no later than five working days after it is sent.
For companies operating in Latvia, e-invoicing should therefore be treated as a compliance, automation, and tax data quality project.
What is B2B e-Invoicing in Latvia?
B2B e-invoicing in Latvia refers to structured electronic invoices exchanged between businesses registered in Latvia. The B2B mandate was originally planned earlier but has been postponed. Under the updated timeline, mandatory B2B e-invoicing will apply from 1 January 2028.
From that date, Latvian-registered businesses issuing invoices to other Latvian-registered businesses will need to prepare those invoices as structured electronic invoices and submit the relevant e-invoice data to VID. Until then, businesses may use e-invoicing voluntarily as part of their preparation for the mandate.
The B2B framework is expected to help Latvia improve invoice transparency, reduce manual processing, strengthen VAT control, and support wider digital tax-compliance objectives.
What is B2G e-Invoicing in Latvia?
B2G e-invoicing in Latvia refers to structured electronic invoices issued by businesses to public-sector budget institutions. Public-sector entities commonly exchange structured electronic invoices (e-rēķini) in XML format, based on the European standard EN 16931 and the Peppol BIS Billing 3.0 specification. Latvia has already implemented mandatory e-invoicing for these transactions. Since 1 January 2025, suppliers invoicing budget institutions must issue structured electronic invoices.
Budget institutions include public bodies defined under Latvian budget and financial management rules. The framework also covers e-invoice exchange among public sector institutions. From 1 January 2026, e-invoice data for G2G, B2G, and G2B transactions must also be submitted to VID.
B2G e-invoices in Latvia must comply with the European e-invoicing standard and can be exchanged through channels such as the national e-address platform, service providers, or agreed electronic delivery methods. This makes B2G e-invoicing the first active stage of Latvia’s broader structured invoicing transition.
What is B2C e-Invoicing in Latvia?
B2C e-invoicing in Latvia refers to electronic invoicing between businesses and individual consumers. According to the current official framework, Latvia does not have a mandatory B2C e-invoicing obligation.
The planned e-invoicing requirements mainly focus on B2G, G2G, G2B, and B2B transactions. Consumer-facing transactions are therefore outside the main scope of the current Latvian e-invoicing mandate.
e-Invoicing in Latvia 2026 Last Updates
Latvia’s most important recent update is the postponement of the B2B e-invoicing mandate to 1 January 2028. The change was introduced through amendments to the Accounting Law adopted in June 2025. This gives businesses more time to prepare their systems, invoice data, and internal processes.
From 1 January 2026, however, Latvia enters an important reporting stage. E-invoice data for G2G, B2G, and G2B transactions must be submitted to VID. This means that public-sector-related invoice flows are not only required to use structured e-invoices but also become subject to electronic data submission.
For B2B transactions, businesses may voluntarily submit e-invoice data to VID from 1 January 2026, ahead of the 2028 mandate. This voluntary window lets businesses test ERP integrations, invoice exchange channels, and internal business processes while preparing for full compliance in 2028.
Latvia’s e-invoicing format is based on XML and must comply with the applicable European e-invoicing standard. VID guidance requires the XML structure to comply with the Peppol BIS Billing 3.0 specification for structured electronic invoice exchange. Businesses planning cross-border or high-volume electronic invoicing should factor Peppol compatibility into their implementation from the outset.
e-Invoicing in Latvia Deadlines and Compliance Roadmap
Latvia’s e-invoicing rollout is phased. The current roadmap is as follows:
| Date | Requirement |
| 18 April 2019 – 18 April 2020 | Central government contracting authorities must be able to receive and process electronic invoices compliant with the European e-invoicing standard from 18 April 2019; sub-central contracting authorities and public service providers from 18 April 2020. |
| 1 January 2025 | Structured e-invoicing becomes mandatory for transactions with budget institutions. |
| 1 January 2026 | E-invoice data submission to VID becomes mandatory for G2G, B2G, and G2B transactions. |
| 1 January 2028 | Mandatory B2B e-invoicing and e-invoice data submission to VID begin for transactions between Latvian-registered businesses. |
This phased approach gives businesses time to move from ordinary invoice creation toward structured, machine-readable invoice generation and reporting.
Is e-Invoicing Mandatory in Latvia?
Yes, e-invoicing is already mandatory in Latvia for specific transaction types. B2G e-invoicing with budget institutions has been mandatory since 1 January 2025. From 1 January 2026, structured e-invoice data for G2G, B2G, and G2B transactions must be submitted to VID.
For B2B transactions, e-invoicing is not yet mandatory. The mandatory B2B requirement will start from 1 January 2028 for transactions between Latvian-registered businesses.
There is currently no mandatory B2C e-invoicing requirement in Latvia.
Latvia e-Invoicing Requirements
Latvia e-invoicing requirements are built around structured electronic invoices that can be automatically and electronically processed. A compliant e-invoice must meet the European e-invoicing standard and be prepared in a structured format rather than as a simple PDF or paper invoice.
The main requirements include:
- structured electronic invoice format;
- XML structure compliant with Latvia’s national e-invoicing standard and the Peppol BIS Billing 3.0 specification
- XML-based invoice data;
- compliance with LVS EN 16931-1:2017 and LVS CEN/TS 16931-2:2017;
- mandatory compliance with the Peppol BIS Billing 3.0 specification;
- electronic circulation through accepted channels;
- submission of e-invoice data to VID according to the applicable timeline;
- human-readable representation where accounting systems require document viewing;
- compliant storage of accounting records.
Latvia’s model is not described as a real-time VAT clearance system. Instead, e-invoice data is submitted to VID after the invoice is issued, within the applicable reporting framework.
When Will e-Invoices in Latvia Become Mandatory?
E-invoices are already mandatory in Latvia for B2G transactions with budget institutions. This requirement has applied from 1 January 2025.
The next key date is 1 January 2026, when structured e-invoice data must be submitted to VID for G2G, B2G, and G2B transactions.
From 1 January 2028, mandatory e-invoicing will apply to domestic B2B transactions between Latvian-registered businesses. Cross-border transactions are not included within the initial phase of the B2B mandate under the current legal framework.
B2C e-invoicing is not currently mandatory under Latvia’s published framework.
Who is Obliged to Use e-Invoicing in Latvia?
The obligation depends on the transaction type and implementation phase.
Businesses invoicing Latvian budget institutions are already required to use structured e-invoices. Budget institutions also use structured e-invoices in relevant public sector transactions.
From 2028, the obligation will expand to Latvian-registered businesses issuing structured electronic invoices for domestic B2B transactions with other Latvian-registered businesses.
The current framework does not introduce a general B2C e-invoicing mandate for transactions with individual consumers.
How to Generate e-Invoices in Latvia?
To generate e-invoices in Latvia, businesses need systems capable of creating structured invoice data in the required XML format. The invoice must comply with the European e-invoicing standard and be suitable for automatic and electronic processing.
Latvia supports a decentralised e-invoicing model. Structured electronic invoices may be exchanged through the Latvian e-Address platform, the Peppol network, certified electronic service providers, or through bilateral electronic agreements between trading partners, provided the exchange complies with the applicable legal requirements.
For B2G transactions, e-address is an important channel because it is used for communication with public institutions. For B2B transactions, businesses should prepare for structured invoice exchange and data submission to VID as the 2028 mandate approaches. For public-sector invoice exchange, the State Digital Development Agency (VDAA) operates the national e-Address infrastructure that enables secure electronic communication between businesses and public authorities.
A reliable e-invoicing solution should support structured XML generation, Peppol BIS Billing 3.0 compatibility, ERP integration, invoice validation, secure exchange, and reporting to VID.
Latvia e-Invoicing Implementation Checklist
Businesses preparing for Latvia e-invoicing should first assess whether their current invoicing processes can produce structured XML invoices instead of only PDF or paper invoices. This includes reviewing ERP, accounting, billing, and document management systems.
A strong preparation plan should also include master data review. Supplier and customer details, registration numbers, VAT data, addresses, invoice references, tax categories, and payment information should be accurate and consistent before structured invoice exchange begins.
Companies should also evaluate which delivery channel is most suitable for their operations. Depending on the business model, this may involve e-address, a Peppol-enabled provider, an integrated service provider, or another agreed electronic channel.
Finally, businesses should monitor VID and Ministry of Finance guidance, test their e-invoicing setup before the relevant deadline, and ensure internal finance, tax, procurement, and IT teams understand the new process.
FAQs About e-Invoicing in Latvia
What is the standard format for e-Invoices in Latvia?
Latvia’s structured electronic invoices (e-rēķini) must be prepared in XML format, following Latvia’s national standard based on LVS EN 16931-1:2017 and the related technical specification LVS CEN/TS 16931-2:2017. VID guidance requires this XML structure to comply with the Peppol BIS Billing 3.0 specification.
How does e-Invoicing benefit businesses in Latvia?
E-invoicing helps businesses reduce manual invoice handling, improve data quality, accelerate invoice processing, support automation, and strengthen compliance. Structured invoices also make it easier for companies to integrate accounting, ERP, procurement, and tax reporting systems.
Can small businesses benefit from e-Invoicing in Latvia?
Yes. Small businesses can benefit from fewer manual tasks, faster invoice processing, better recordkeeping, and improved readiness for the 2028 B2B mandate. The postponement of the B2B mandate gives smaller businesses more time to prepare.
Are there any exemptions to the e-Invoicing requirements in Latvia?
Official guidance identifies limited exceptions rather than a broad exemption from e-invoicing. For example, certain transactions supported by documents generated through specific legally recognized systems may be treated differently. Businesses should review the applicable Accounting Law provisions and VID guidance for their specific transaction type.
How can businesses in Latvia prepare for the e-Invoicing transition?
Businesses should review invoice flows, confirm whether they issue invoices to budget institutions or Latvian-registered businesses, assess ERP readiness, clean master data, evaluate e-address or service-provider connectivity, and prepare for structured XML invoice generation and VID data submission.
What software solutions are available for e-Invoicing in Latvia?
Businesses should choose software that supports XML invoice generation, Peppol BIS Billing 3.0 compatibility, ERP integration, invoice validation, secure exchange, and reporting to VID. For international companies, the solution should also support multi-country e-invoicing and digital reporting requirements.
Are there penalties for non-compliance with e-Invoicing regulations in Latvia?
Latvia’s e-invoicing obligations are part of the accounting and tax compliance framework. Businesses that fail to meet mandatory requirements may face compliance risks under applicable accounting and tax rules. Companies should monitor VID guidance for detailed enforcement and practical compliance instructions.