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Latvia: e-Invoicing Journey

Latvia is gearing up to make a significant change in how businesses and the government handle transactions through the introduction of mandatory e-invoicing by 2025. While the official laws enforcing this shift are still in the works, the plan is to adopt the PEPPOL standard to ensure a consistent and secure approach to document management.

At present, businesses in Latvia enjoy flexibility in using various formats for invoices when dealing with each other (B2B). However, from April 2020, government transactions (B2G) related to public procurement must adhere to the EU Directive 2014/55/EU, necessitating the use of electronic invoices.

The envisioned mandate for 2025 places a strong emphasis on businesses and government entities conforming to EU specifications for e-invoices. State and local institutions will be required to accept electronic invoices that align with these specifications. The entire process is expected to follow the standards set by the European Network of Electronic Documents and e-Invoices (PEPPOL), introducing a standardized approach that simplifies and streamlines the entire invoicing system.

These changes reflect broader EU directives aimed at enhancing the efficiency and consistency of electronic transactions. As these regulations evolve, businesses operating in Latvia will need to stay informed and prepare for the transition to mandatory e-invoicing, embracing the benefits of a more streamlined and digitally advanced invoicing ecosystem. This shift not only aligns with international standards but also signifies a progressive step towards a more efficient and interconnected digital business environment in Latvia.


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