Electronic invoicing (e-invoicing) is a cornerstone of Latvia's national digital agenda, aiming to strengthen tax compliance, reduce the shadow economy, and foster greater efficiency in financial transactions. Following the successful implementation of mandatory Business-to-Government (B2G) e-invoicing, Latvia is now set to introduce mandatory Business-to-Business (B2B) e-invoicing, with a phased approach to allow businesses time to adapt.

This guide provides a detailed overview of the key e-invoicing requirements in Latvia, including mandatory rules, standards, compliance considerations, and the timeline for upcoming changes.

Mandatory e-invoicing for public sector (B2G) transactions 
E-invoicing standards and networks
Upcoming mandatory e-invoicing for private sector (B2B) transactions
Voluntary adoption for consumer invoicing (B2C)
Tax and compliance considerations
Conclusion

Mandatory e-invoicing for public sector (B2G) transactions 

Since January 1, 2025, all suppliers of goods and services to Latvian budgetary institutions (state and municipal entities) are obliged to issue invoices in a structured electronic format. This mandate applies to all B2G transactions, extending beyond just public procurement contracts.

• Standard format: The prescribed format for B2G e-invoices is Peppol BIS Billing 3.0, which is based on the European standard for e-invoicing (EN 16931). This ensures seamless interoperability with other European countries utilising the Peppol network.

• Transmission channels: Businesses can submit their B2G e-invoices via the national e-Address (e-adrese) portal (found on Latvija.lv) or through any certified Peppol Access Point. The e-Address system provides a secure, unified communication platform for interactions with public administration.

• Mandatory data reporting: From January 1, 2026, there will also be a mandatory requirement for e-invoice data reporting to the State Revenue Service (SRS) for all B2G and G2G (Government-to-Government) transactions with budget institutions. This is in addition to the e-invoice issuance requirement. 

E-invoicing standards and networks

Latvia's e-invoicing infrastructure is built on European standards, promoting interoperability and ease of adoption:

• European standard (EN 16931): Latvia has adopted the fundamental European e-Invoicing standard, ensuring a common data model for electronic invoices across the EU.

• Peppol BIS Billing 3.0: This specific implementation of the EN 16931 standard is central to Latvia's e-invoicing strategy. It is mandatory for B2G transactions and is anticipated to be the required standard for B2B. The use of Peppol greatly facilitates cross-border e-invoicing for Latvian businesses dealing with partners in other Peppol-enabled countries.

• e-Address (e-adrese): This national government portal serves as a key channel for secure electronic communication, including the exchange of e-invoices, particularly with public entities. Businesses can integrate with e-Address or utilise Peppol Access Points to fulfill their obligations.

Upcoming mandatory e-invoicing for private sector (B2B) transactions

Latvia is preparing for mandatory domestic B2B e-invoicing, a significant step in its digital strategy. While initially planned for earlier, the mandatory start date has been officially postponed to allow businesses ample time for preparation.

• Voluntary phase (from March 30, 2026): Businesses are encouraged to begin using e-invoices voluntarily for B2B transactions from March 30, 2026. This transitional period allows companies to test their systems and processes.
  
  

• Mandatory phase (from January 1, 2028): The mandatory use and reporting of e-invoices for domestic B2B transactions will come into full effect on January 1, 2028. This means all Latvian-registered businesses will be required to issue and receive structured e-invoices for their transactions.

• Decentralised CTC model: Latvia has adopted a decentralised Continuous Transaction Controls (CTC) model for B2B e-invoicing. This implies that while invoices will primarily be exchanged directly between trading partners (likely via certified service providers), relevant invoice data will also need to be reported to the State Revenue Service (SRS) within a specified timeframe (e.g., no later than five working days after invoice dispatch).

• Expected standard for B2B: The Peppol BIS Billing 3.0 standard is expected to be the mandatory format for B2B transactions once the mandate is fully enforced, ensuring consistency across B2G and B2B sectors and alignment with the EU's VAT in the Digital Age (ViDA) initiative. 

• Non-Residents: Currently the B2B mandate applies to entities established in Latvia. Businesses without permanent residence are exempt, but voluntary adoption is recommended.
  

Voluntary adoption for consumer (B2C) invoicing 

Currently, e-invoicing for B2C (Business-to-Consumer) transactions is not mandatory in Latvia.

Businesses are still permitted to issue traditional paper invoices or unstructured electronic formats (like PDFs) to consumers. The primary focus of Latvia's e-invoicing mandate is on enhancing efficiency and tax compliance within the B2G and B2B sectors.

Tax and compliance considerations

Businesses engaging in e-invoicing in Latvia must ensure adherence to national tax laws and record-keeping requirements:

• VAT laws: All e-invoices must comply with Latvian VAT legislation, including accurate VAT rates, taxpayer identification details, and invoice content requirements.

• Archiving period: The statutory archiving period for e-invoices in Latvia is generally 5 years for invoices related to goods and services, and 10 years for invoices related to real estate, from the end of the tax year. Digital storage solutions must ensure the authenticity, integrity, and accessibility of invoices throughout this period.

• E-signatures: Unlike some other countries, digital signatures are not explicitly required for e-invoices in Latvia, simplifying the technical implementation for businesses.

• Future regulations: While the core framework is established, further technical and procedural regulations, especially concerning the B2B mandate and data reporting to the SRS, are expected to be finalised by the State Revenue Service.

Conclusion

Latvia is steadily advancing towards a fully digitised invoicing ecosystem. The mandatory B2G e-invoicing, coupled with the upcoming phased B2B mandate via the Peppol BIS Billing 3.0 standard and a decentralised CTC model, underscores the country's commitment to efficiency and transparency.

Businesses operating in Latvia should proactively assess their current invoicing capabilities and prepare for these changes to ensure seamless compliance and leverage the benefits of digital transformation.

Maventa’s e-invoicing solutions make invoicing effortless: you can connect seamlessly to Peppol and other required networks to expand your system’s reach. With just one integration, you can offer the best invoicing experience in the market for your customers, ensuring compliance and efficiency across all your transactions.