2025 Latvia (2025 eInvoicing Country Sheet)

Summary

• B2G mandate: Since January 1, 2025 Latvia has a mandatory Business-to-Government (B2G) eInvoicing mandate in place. Since 18.04.2019. contracting authorities shall accept and process electronic invoices that complies with the European Standard for eInvoicing. This obligation is established under the public procurement regulations, which transposes Directive 2014/55/EU into national legislation. All public sector entities must receive and process these eInvoices through the eInvoicing platform (eAddress) maintained by the State Digital Development Agency (VDAA).
• B2B and B2C mandates: Latvia has adopted a mandatory Business-to-Business (B2B) eInvoicing requirement that will take effect on 1 January 2028. Under amendments to the Accounting Law (Grāmatvedības likums), Latvian-registered businesses issuing invoices to other businesses—including public institutions—will be required to submit structured electronic invoice data to the State Revenue Service (VID). This mandate aims to enhance transparency and digital compliance in commercial transactions. There is currently no business-to-consumer (B2C) eInvoicing mandate in Latvia.
• eInvoicing standard: The European eInvoicing standard (EN 16931) has been adopted in Latvia by public authorities.
• Operating model for B2G eInvoicing: Latvia employs a decentralised eInvoicing solution, allowing the use of either the eInvoicing platform (eAddress) maintained by the State Digital Development Agency (VDAA) or commercial operators for issuing and receiving eInvoices.
• Use of CIUS and Extensions: Latvia does not apply any national Core Invoice Usage Specifications (CIUS) or additional extensions beyond the European standard (EN 16931).
• VAT Real-time reporting system: No real-time reporting system for eInvoicing is available. 
• Monitoring mechanism: Latvia does not have a mechanism to monitor eInvoicing developments.

Highlights

On 31 October 2024, the Latvian parliament approved amendments to the Accounting Law, mandating the use of structured electronic invoices. From 1 January 2025, eInvoicing will be compulsory for B2G transactions, i.e. mandatory use of eInvoicing for suppliers to the public sector. The requirement will extend to transactions between Latvian-registered businesses (B2B) starting 1 January 2026.

On June 5, 2025, the Latvian parliament approved amendments to the Accounting Law, postponing the e-invoicing mandate in transactions between Latvian-registered businesses (B2B) to January 1, 2028, as well as determining a phased approach for submitting e-invoice data to the State Revenue Service (VID) – for G2G, B2G, G2B transactions from January 1, 2026; for transactions between Latvian-registered businesses (B2B) from January 1, 2028.

Legislation

B2G

The Regulation of the Cabinet of Ministers No.154 (enters into force 18.04.2019.) Applicable electronic invoice standard and specification of the use and circulation procedure of its basic elements (under the Public Procurement Law, the Law on the Procurements of Public Service Providers, the Law on Procurements in the Field of Defence and Security and the Law on Public-Private Partnership, which transposes Directive 2014/55/EU into national legislation).

Latvia has implemented a mandatory Business-to-Government (B2G) eInvoicing regime. Further, as of 1 January 2025, amendments to the Accounting Law require suppliers to the public sector to issue structured electronic invoices when transacting with budget institutions, as defined by the Law on Budget and Financial Management. This includes state-funded institutions, partially funded public undertakings, and budget-unfinanced entities. Budget institutions must also exchange eInvoices among themselves for domestic transactions. If a contract with a budget institution was concluded before 31 December 2024, the obligation to issue eInvoices may be deferred until 1 January 2026.

B2B

There is an upcoming business-to-business (B2B) mandate. The amendments to the Accounting Law  (Latvijas Vēstnesis, 2021, 121.B nr.; 2024, 193., 221. nr.) will require all businesses to use eInvoicing starting from 2028 by utilising the decentralised Continuous Transaction Controls model (CTC)[1]. Exemptions apply to: 

• Companies for transactions where payment is confirmed by a supporting document prepared under legislation on using electronic devices and equipment for registering taxes and other payments. 

• Companies for transactions where payment is confirmed by a supporting document generated within the National Health Service’s Management Information System. 
• National security agencies for their electronic supporting documents. 

B2C

There is no business-to-consumer (B2C) mandate.

Status on the implementation of the European eInvoicing standard

The European standard EN 16931 has been adopted by contracting authorities. The Amendments to the Accounting Law specifies that eInvoices must adhere to European eInvoicing standard and must be automatically and electronically processable. The European eInvoicing standard has been transposed to a national standard status.

Operating model for eInvoicing 

Latvia has opted for a decentralised eInvoicing solution, allowing taxpayers the flexibility to issue and receive eInvoices either through the eInvoicing platform (eAddress) maintained by the State Digital Development Agency (VDAA) or through commercial eInvoicing operators.  Public contracting authorities can receive electronic invoices through e-mail, using service provider solutions sold on the market or through the eInvoicing platform (eAddress) maintained by the State Digital Development Agency (VDAA)

Citizens and entrepreneurs can access their eAddress mailbox through authentication on www.latvija.gov.lv portal. In case of an eAddress, the users will need a Smart-ID, eID card, eParaksts or eParaksts Mobile (a mobile app to be identified without an eID card but just as securely) to prove identities. 

Other methods of electronic transmission include the use of invoicing service providers/operators (PEPPOL service providers) as a paid service, and direct methods between taxpayers, where the issuer and receiver agree on the channel of transmission (e.g. by email or direct software integration interfaces). 

Use of Core Invoicing Usage Specifications (CIUS) at national level

There is no national CIUS or additional extensions.

VAT Real-time reporting system

Currently there is no real-time reporting system in Latvia.

Monitoring mechanisms

Currently, there is no monitoring mechanism for eInvoicing in Latvia.

Next steps

Obligation to submit e-invoice data to the State Revenue Service (VID) for G2G, B2G, G2B transactions will enter into force on January 1, 2026.

E-invoicing mandate and obligation to submit e-invoice data to the State Revenue Service (VID) for transactions between Latvian-registered businesses (B2B) will enter into force on January 1, 2028.

[1] The Continuous Transaction Controls (CTC) model is a regulatory framework used by tax authorities to gain real-time or near-real-time access to business transaction data, particularly for eInvoicing and eReporting. It’s designed to reduce VAT fraud, increase tax compliance, and digitize tax administration.

Last updated:  Aug 14, 2025 17:13