Latvia: VAT in the Digital Age (ViDA) and E-Invoicing Requirements

Transition to E-Invoicing: Key Insights

In the Latvia e-invoicing is already a requirement for transactions with government bodies. This obligation will extend to all business-related invoices, including, business-to-business (B2B) transactions on January 1, 2028. Given these developments, businesses need to understand what constitutes a valid e-invoice under the new rules and how the changes may impact their operations.

It is important to recognize that an electronic invoice (e-invoice) is not the same as a digital invoice, a PDF file, or an invoice simply sent via email. The EU e-invoicing directive specifies that an e-invoice in Latvia must be issued, transmitted, and received in a structured electronic format, which allows for automated, electronic processing.

Under Latvian invoicing rules, an e-invoice shall be submitted to the State Revenue Service (SRS) once no later than 5 working days after the date of its sending. Businesses are advised to consult with their advisors to ensure compliance, as regulations may vary and change across countries. For those with international operations, coordination with global colleagues is recommended.

Legal Framework for E-Invoicing in Latvia

E-invoicing in Latvia is governed by Directive 2014/55/EU, which has been transposed into national legislation via amendments to Accounting law. At present, e-invoicing is mandatory only for B2G, G2B and G2G transactions. This means that government and suppliers to government bodies must issue e-invoices in a structured format that complies with the European standard EN 16931. Additionally, Latvian Cabinet of Ministers on December 9, 2025, have provided Regulation No.749 on "Procedures for organizing and implementing the circulation of structured electronic invoices and for submitting structured electronic invoice data to the State Revenue Service".

Requirements for E-Invoicing

To be considered valid, an e-invoice in the Latvia must be created, transmitted, and received in a structured format compliant with EN 16931. A simple PDF, PNG, JPG etc. attached to an email does not qualify as an e-invoice. Preferred formats include those that are UBL/XML-based. Sector-specific formats may also be used, provided they are correctly mapped to EN 16931.

E-invoices shall be transmitted to other parties using one of the following delivery channels:

1. Official electronic address via www.latvija.lv
2. A service provider or operator channel that is integrated with the State Revenue Service system application programming interface (API);
3. State Revenue Service Electronic Declaration System (EDS) API or manual XML upload to EDS.

The company is entitled to replace the "signature" requisite in an internal justification document (including e-invoices), if it is prepared in electronic form, with an electronic certificate/statement.

Archiving and Accessibility of E-Invoices

Latvian Accounting law requires invoices to be archived in their original for a period not shorter than 5 years.

Reporting obligations to State Revenue Service in Latvia

Starting from 1 January 2026, the transfer of e-invoice data to the State Revenue Service is mandatory for state administration and companies registered in Latvia, or G2G, B2G, and G2B segments.

Starting from 1 January 2028 – companies registered in Latvia in transactions with other companies in the B2B segment shall prepare supporting documents issued for payment as e-invoices, and at the same time shall transfer the issued e-invoices to the SRS. During the period from 1 January 2026 to 31 December 2027, companies may submit e-invoice data to the SRS on a voluntary basis.

In general, an e-invoice must be submitted to the SRS once, no later than 5 business days after the date of sending. If an e-invoice has already been submitted through the selected channel, it does not need to be submitted again.

If the deadline cannot be met, the rules provide for different actions depending on the reason.

If there are disruptions in the company's or operator's systems:

• The delay must be reported to the SRS EDS no later than the next business day after the deadline, indicating the reason;
• The e-invoice must be submitted to the SRS within 3 business days after the disruption is resolved.

If there are disruptions in the SRS e-invoice submission solution:

• The e-invoice must be submitted no later than the next business day after the SRS has notified the resolution of the disruption.

If the delay is due to other reasons:

• The EDS must be notified, indicating the reason and period,
• The e-invoices must be submitted no later than 30 calendar days from the determination of the reason.

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