On June 5, 2025, the Budget and Finance (Tax) Committee of the Latvian Parliament (Saeima) rejected the proposal to delay the Business-to-Business (B2B) e-invoice mandate by one year. Instead, they approved a revised draft law, which was passed the same day, setting new deadlines:
- January 1, 2026: Mandatory electronic invoicing for all B2G (Business-to-Government) transactions.
- January 1, 2028: Mandatory electronic invoicing and reporting for all domestic B2B transactions.
This updated timeline indicates the Latvian government’s focus on improving digital tax compliance and reducing the shadow economy. The Cabinet of Ministers is expected to issue detailed regulations by July 1, 2025, to facilitate this transition.
According to the explanations in the draft legislation, it is recommended and encouraged to make the use of e-invoices in B2B transactions voluntary and to transmit e-invoice data to the SRS as of March 30, 2026. This voluntary phase will allow businesses to become familiar with the e-invoice system before the mandatory requirement comes into force.
For businesses operating in Latvia, this extension provides additional time to prepare for the upcoming changes. It is advisable to start reviewing and upgrading invoicing systems to ensure compliance with the new requirements.
Further updates and detailed guidelines will be provided as the Cabinet of Ministers releases the regulations.
