Latvia Regulatory Updates May 2024

Latvia to introduce mandatory e-invoicing for B2B and B2G transactions from 2025

The Latvian Ministry of Finance released a draft law on May 27, 2024, mandating e-invoicing for B2B and B2G transactions, with phased implementation starting January 1, 2025.

Timeline:

• January 1, 2025: E-invoicing required for B2G transactions (invoices issued to budget institutions).

• January 1, 2026: E-invoicing extended to B2B transactions.

Impact:

• Latvian businesses must issue structured invoices in compliance with the European Standard for e-invoicing for recipients within Latvia.

• Transmission methods for invoices will be regulated by the Cabinet of Ministers, with options including Peppol, agreements between parties, and a free email delivery option.

• Invoice data must be transmitted to the tax authority, with further details to be provided by the Ministry of Finance.