Latvia’s move towards mandatory B2B e-invoicing is transforming business processes. Uncover the essentials of Latvia’s e-invoicing regulations and how SNI’s solution helps businesses stay compliant with the country’s regulations.
In September 2024, the Cabinet of Ministers (MK) reviewed amendments to the Accounting Law establishing the legal framework for structured electronic invoicing in Latvia. The framework introduces a phased approach to mandatory e-invoicing, with public sector transactions implemented first and domestic B2B transactions postponed to allow additional preparation time for businesses and authorities.
Here’s a breakdown of the relevant requirements and provisions introduced to regulate e-invoicing:
Latvia e-Invoicing Scope
E-invoicing requirements apply to transactions with state entities (G2G, G2B, B2G) and, in a later phase, to transactions between companies registered in Latvia (B2B), including individuals performing economic activities under the Accounting Law and the Value Added Tax Law.
Latvian-registered companies must issue structured e-invoices when invoicing public sector entities. B2C invoices are not within the scope of the mandate.
Mandatory B2B e-invoicing, originally planned for 2026, has been postponed and will become compulsory from 1 January 2028.
Submission of Data to the State Revenue Service (SRS)
Starting from 1 January 2026, companies must ensure that e-invoice data relating to public-sector transactions is transmitted to the State Revenue Service (SRS). The SRS receives this data through the national e-address system and other approved channels.
For domestic B2B transactions, mandatory reporting of e-invoice data will apply from 1 January 2028, aligned with the start of the B2B mandate.
The Cabinet of Ministers defines the procedures and channels for e-invoice circulation, and companies must follow the government-specified delivery methods.
Technical Details of Structured E-Invoices in Latvia
File format:
Structured e-invoices must be issued in XML format.
Compliance standards:
The XML structure follows the Latvian national standard and is aligned with PEPPOL BIS Billing 3.0 and the European standard EN 16931, enabling automated processing and cross-border interoperability.
Submission Methods and Exchange Channels
Companies may exchange and submit e-invoices through several channels:
- The national e-address system
- PEPPOL service providers
- API integration from accounting systems to the SRS
- Other agreed electronic exchange channels between taxpayers
Voluntary B2B e-invoicing and submission to the national system is expected to be possible from 2026, allowing companies to prepare before the mandate becomes compulsory.
Implementation Timeline for E-Invoicing in Latvia
1 January 2025
- Mandatory structured e-invoices for transactions between businesses and public authorities (B2G, G2B, G2G).
1 January 2026
- Mandatory transmission of e-invoice data to the SRS for public-sector transactions.
- Voluntary B2B e-invoicing and testing phases begin.
1 January 2028
- Mandatory structured e-invoicing and reporting for domestic B2B transactions.
Legislative Background
The Saeima (Latvian Parliament) adopted amendments to the Accounting Law establishing the e-invoicing framework and later approved further amendments postponing the B2B mandate to 2028 to provide additional preparation time for taxpayers and system operators.
How can SNI help you about e-Invoicing in Latvia?
SNI provides a comprehensive end-to-end solution to help businesses comply with the electronic invoicing regulations mandated by the tax authority in Latvia. This solution handles the extraction of data from clients’ ERP systems, maps and processes the data, and ensures seamless communication with the tax authority through the relevant government platform.
With SNI’s solution, users can effortlessly generate electronic invoices and access them in both XML and user-friendly HTML/PDF formats through an intuitive cockpit interface. The system retrieves financial data directly from the taxpayer’s accounting system and converts it into the required electronic format, ready for transmission via the PEPPOL Network using certified access point providers.
All incoming invoices are consolidated within the SNI Inbound Cockpit—a dedicated interface designed for enhanced visibility and streamlined management. Each invoice is displayed in both machine-readable (XML) and human-readable (HTML/PDF) formats, ensuring full transparency and alignment with Latvian tax regulations.
SNI also offers an advanced invoice reconciliation feature, which automatically verifies incoming invoices by matching them against corresponding purchase orders, delivery notes, or internal records. This reduces manual processing, minimizes errors, and accelerates validation, leading to increased accuracy and smoother financial workflows.
The SNI solution integrates seamlessly with existing client systems without requiring version upgrades. It supports all SAP versions including SAP ECC 4.7 and above, SAP R/3, SAP S/4HANA, and the SAP Business Technology Platform (BTP). Additionally, SNI provides ERP-independent solutions that can integrate with any other ERP software used by clients.