Latvia
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Regulated under EU Directive 2014/55/EU, mandating
e-invoicing for public procurement. Latvia has developed a national framework to promote seamless and compliant e-invoicing practices for both public and private sectors.
Implementation Timeline
| Date | Requirement | Details |
| April 18, 2019 | Mandatory for Public Sector Suppliers | E-invoicing became mandatory for all suppliers to public entities, requiring compliance with the EU standard EN 16931 |
| 2025 (Planned) | Mandatory B2B E-Invoicing | Latvia plans to introduce mandatory e-invoicing for private sector B2B transactions in alignment with EU VAT digital reporting initiatives |
Who Needs E-Invoices?
E-invoicing in Latvia is required for:- Public Sector Suppliers: Required for transactions with public entities.
- B2B Transactions: Expected to become mandatory for private sector businesses by 2025.
- Exporters: Required for cross-border VAT reporting within the EU.
- Non-Resident Businesses: Must issue e-invoices for transactions with Latvian public entities if registered for VAT in Latvia.
E-Invoicing vs. E-Billing
| Aspect | E-Invoicing | E-Billing |
| Purpose | Compliance with Latvian and EU regulations | Informal and internal transactions |
| Format | XML via certified platforms | Flexible, non-regulated formats |
| Usage | Mandatory for B2G, planned for B2B | Customer-focused or internal use |
Key Features of Latvia’s E-Invoicing System
Latvia’s e-invoicing system involves:- Submission Platforms: E-invoices must be submitted via certified platforms authorized by the State Revenue Service (SRS).
- Validation: Ensures compliance with VAT laws and mandatory invoice fields.
- Archiving: Electronic storage is required for five years under Latvian tax laws.
E-Invoicing Dataset
E-invoices in Latvia include the following critical data:- Buyer/Seller IDs: VAT registration numbers.
- Invoice Details: Invoice number, issue date, and payment terms.
- Goods and Services: Line-item descriptions, quantities, unit prices, and subtotals.
- Taxes: Applicable VAT rates and amounts.
- Transaction Info: Total amount, currency, and payment method.
- Delivery Info: Date and location for goods or services.
E-Invoicing Across Transaction Types
B2B Transactions:- Planned to be mandatory by 2025.
- Improves VAT compliance, reduces errors, and streamlines domestic and cross-border transactions.
- Not mandatory but encouraged to improve transparency and internal efficiency.
- Mandatory since 2019 for all public sector suppliers.
- Must comply with EU EN 16931 and be submitted via certified platforms.
Penalties for Non-Compliance
Non-compliance with Latvia’s e-invoicing regulations may result in:- Invoice Rejections: Non-compliant invoices may be rejected, causing payment delays.
- Fines: Penalties for failing to meet public procurement requirements.
- Legal Risks: Repeated violations may lead to audits and reputational damage.
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