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Last updated at
February 4, 2026
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Book NowLatvia has introduced a phased national electronic invoicing regime under amendments to the Accounting Law and related EU regulations. The system makes structured e-invoicing mandatory for selected transactions and aims to modernise how businesses issue, transmit, and report invoices across the country. E-invoicing is part of Latvia’s compliance with European Union rules on electronic invoice standards and is designed to increase transparency, reduce tax evasion, and improve tax administration. This blog explains the requirements of the system, key dates, technical process, benefits, and how providers like Flick Network help companies comply smoothly with the new law.
E-invoicing in Latvia means issuing, sending, and receiving invoices in an electronic structured data format that enables automated processing, rather than simply sending paper copies or sending these as unstructured digital formats, such as PDFs. According to the rule, it should be generated in a structured format in accordance with the European norm EN 16931 and technical specifications like PEPPOL BIS Billing 3.0 or any other XML format recognized in Latvia.
Invoices that are merely scanned copies of paper invoices or unstructured files do not qualify as electronic invoices under Latvia’s framework. Once an e-invoice is issued in the required structured format and transmitted through approved channels, both supplier and buyer can retain electronic records for audit and compliance. The system enables businesses to generate, send and track invoices automatically. The structured approach eliminates manual paperwork, improves accuracy, and provides full traceability of business transactions in Latvia.
The rollout of e-invoicing in Latvia follows a phased timeline giving businesses time to prepare before full enforcement.
The requirement to issue structured e-invoices for all transactions with Latvian public sector entities comes into effect. Latvian companies issuing invoices to government and budgetary institutions must use a structured electronic format.
The rules for submitting structured e-invoice data to the State Revenue Service (VID) become mandatory for government-related transactions (B2G and G2G). Voluntary B2B e-invoicing adoption is encouraged during this period.
Mandatory e-invoicing and structured data reporting for all business-to-business (B2B) transactions between Latvian-registered companies takes effect.
The e-invoicing mandate in Latvia applies to the following:
All suppliers issuing invoices to public sector bodies, including ministries, agencies, and other budget institutions. These entities and their suppliers must exchange structured electronic invoices.
From 1 January 2028, all businesses registered in Latvia that issue invoices to other VAT-registered businesses will need to issue and receive structured electronic invoices.
Invoices to individuals or consumers (B2C) are not currently covered by the structured e-invoicing mandate.
Certain exemptions may apply based on specific electronic document rules and systems recognised in Latvian law.
Here are the key technical requirements and process points under the new mandate:
Invoice Format: Invoices must be created in a structured data format that follows the European e-invoicing standard of EN 16931. A format such as PEPPOL BIS 3.0 or any compatible XML structure is required; so that systems can exchange data with full interoperability.
Electronic Transmission: An e-invoice can be sent from one system to another through API integration or through a certified service provider on the Peppol network or through a national digital platform used for the exchange of public sector documents. This ensures consistent delivery and secure data flow.
Submission and Reporting: A business must send structured invoice data through approved channels. Submission of data to the State Revenue Service becomes mandatory in line with the phased timeline. Government related transactions require reporting from 2026 and B2B transactions require reporting from 2028.
Archiving and Record Keeping: An e-invoice and its metadata must be stored in a secure electronic archive that is accessible for audits or tax checks. Storage must follow the duration required under Latvian accounting rules so that authorities can verify the integrity of financial records.
Data Integrity: A system must preserve the integrity of invoice data during transmission and storage. The structured format allows automated validation and reduces manual errors so the accuracy of financial information is higher.
E-invoicing in Latvia provides regulatory and operational advantages for businesses and for tax authorities:
Efficiency: A structured electronic invoice speeds up the creation and processing of financial data. It removes most manual tasks of the finance team and supports faster and more consistent workflows.
Accuracy: The use of one unified data standard lowers the number of errors in tax calculations and in the reporting of financial information. This improves the overall quality of the accounting process.
Compliance: The system increases the level of tax transparency. It also gives authorities access to invoice data in near real time when needed for verification or for monitoring.
Cost Savings: A reduction in the use of paper and physical storage lowers the cost of printing and the cost of long term archiving. It also reduces the administrative work required for document handling.
Fraud Prevention: A structured digital record creates a clear audit trail that limits opportunities for invoice manipulation or tax evasion. Each invoice has traceable data that supports stronger internal controls.
Faster Reconciliation: Automation speeds up the matching of payments with invoices and improves the flow of accounting tasks. This supports better cash flow management and more accurate financial planning.
Non-compliance with the e-invoicing requirements in Latvia can create several issues for a business:
Invalid Invoices: It might happen that if an invoice is not generated in the prescribed structured manner, it will not be eligible as a valid electronic invoice for an ordered transaction, and it may hinder the processing and subsequent payment.
Penalties: A late or incorrect electronic invoice or an error in the reporting of invoice data can result in fines under the rules of Latvian tax and accounting law. This also increases the risk of repeated penalties if the issue is not corrected.
Operational Disruptions: A lack of system readiness can interrupt the flow of billing and the flow of reporting tasks. This can slow down business operations and create delays in the handling of financial activities.
Increased Audit Risk: A failure to follow the required structured format can make audits more difficult. It can also attract additional scrutiny from the authorities because the data becomes harder to verify.
Here are steps businesses should take now to prepare:
Assess Your Systems: Evaluate whether the ERP system or the billing system or the invoicing system can create structured invoices that meet the requirements of the Latvian e-invoicing standards. This helps you identify gaps early and plan the needed upgrades.
Choose a Solution Provider: Select a provider that offers a fully compliant solution such as Flick Network. A provider should support integration of the system, validation of invoice data, and the transmission of invoices so your business stays aligned with the mandate.
Integrate and Test: Connect your system to the compliant e-invoicing platform through API or through sample test files. This confirms the accuracy of data mapping and the extraction of required fields and the overall workflow.
Staff Training: Train the finance and accounting teams on the creation of structured e-invoices and on the reporting of invoice data. They also need training on the proper storage of electronic records and on the handling of new operational steps.
Flick Network provides a compliance-driven invoicing platform tailored for businesses of all sizes in multiple jurisdictions. For the Latvia context, the platform can support the transition to structured e-invoicing by offering:
Structured Invoice Generation: Flick Network creates invoices automatically in the structured XML formats aligned with the EN 16931 standard and the PEPPOL BIS requirements. This ensures full accuracy of the data and smooth processing on the platforms used for electronic invoicing in Latvia.
Submission and Reporting: The platform sends invoice data to the correct channels and supports the validation of the data and the secure transmission of every invoice. This helps businesses stay on the required level of tax compliance.
Invoice Archiving and Tracking: All validated invoices and the related transmission logs are stored in a digital archive that supports full traceability. This gives a business reliable access for audits and internal reporting and for long term compliance monitoring.
Integration with ERP or Billing Systems: Flick Network connects to the existing ERP system or the billing system and creates a unified workflow that supports consistent invoice handling and future scalability of operations.
Continuous Compliance Support: The platform provides regular updates on regulatory changes and on data format requirements. It also offers onboarding support that keeps a business aligned with the evolving e-invoicing rules of Latvia.
Latvia’s phased rollout of a mandatory structured e-invoicing system for the public sector and business-to-business transactions represents a major step in the digitisation of tax compliance and the improvement of business operations. Starting with the requirement for public sector invoicing in 2025 and expanding to all B2B transactions in 2028, businesses must prepare the systems of their finance departments, integrate a compliant software solution, train the relevant teams, and maintain the records of invoices properly.
Early adoption of a compliant solution such as Flick Network can help streamline the processes of invoicing, reduce the likelihood of errors, and ensure full compliance. Implementing these changes early will minimise operational disruptions, prevent penalties, and enable efficient, transparent, and fully digital invoicing across Latvia.
1. What is structured e-invoicing in Latvia?
Structured e-invoicing in Latvia refers to the issuance of invoices electronically in a machine-readable format that allows automated processing and complies with European standards as well as the regulations of Latvia.
2. Who must comply with Latvia’s e-invoicing rules?
Suppliers issuing invoices to public sector entities must comply starting on 1 January 2025, and all businesses issuing B2B invoices must comply starting on 1 January 2028.
3. What happens if a business issues an invoice not in structured format?
Invoices that are not issued in the required structured format may not be accepted as legally or tax compliant and may result in penalties or disruptions to operations.
4. Is there a requirement for e-invoicing to consumers in Latvia?
No. At present, there is no mandatory requirement for e-invoicing of transactions to individual consumers.
5. How long do I need to keep e-invoice records in Latvia?
Structured invoice data must be stored in a retrievable digital format; and it must be maintained for future audits in accordance with the accounting rules and legal requirements of Latvia.
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