Last modified on 2025-11-27 in Blog
Peppol BIS 3.0 or UBL 2.1
eAdrese, latvija.lv
Finanšu Ministrija
Post-audit
2020
2026
5 years (goods and services), 10 years (real estate)
Latvia is getting ready to make e-invoicing mandatory, but the rules aren’t too strict yet. People are generally open to digital systems, and the process so far has been simpler compared to some other EU countries.
Latvia is getting ready to make a big change in the way businesses handle invoicing. From January 1, 2025, companies will be required to send electronic invoices for all B2G transactions. By 2028, e-invoicing will also become mandatory between B2B transactions. It’s a plan to cut down on paperwork, speed up payments, and bring more transparency to the tax system.
The Latvian government is also shifting towards compulsory e-invoicing to enhance transparency, minimize tax evasion. Starting January 1 2025, e-invoicing will be required for all B2G transactions in a structured format, with B2B e-invoicing set to follow in 2028. Companies will have to use the format as Peppol BIS 3.0 to remain compliant. Whether you are a small local firm or a big enterprise, these changes are going to change the way you manage your invoicing in Latvia.
On October 31, 2024, the Latvian Parliament has approved amendments to the Accounting Law mandating structured B2G e-invoicing from January 1, 2025, following EU Directive 2014/55/EU. Invoices must be produced in machine-readable formats like UBL 2.1 or Peppol BIS 3.0 and submitted via platforms such as eAdrese.
Then, on June 5, 2025, the Latvian Parliament passed further amendments delaying the mandatory B2B e-invoicing deadline to January 1, 2028, while introducing structured invoice data reporting to the State Revenue Service (VID) for B2G and B2B transactions starting January 1, 2026. This phased rollout gives businesses additional time to upgrade systems and prepare before full implementation.
You do not need to know anything about e-invoicing standards or real-time reporting.
E-invoicing is the process of creating, sending, and receiving invoices in a structured digital format instead of on paper or PDF. In Latvia, this shift is part of a broader effort to modernize public administration, improve tax compliance, and align with EU Directive 2014/55/EU, which sets the European e-invoicing standard (EN 16931). With formats such as UBL 2.1 or Peppol BIS 3.0, invoices can be automatically processed between systems, and save time, minimize errors and maximize transparency.
In the case of Latvia, the implementation of e-invoicing is not only a matter of technology, it is to stop VAT fraud, overdone paperwork, and inefficiency of business. This is considered by the Ministry of Finance and the State Revenue Service (VID) a major measure to narrow down the estimated at approximately €193 million in 2022 around 5.0% of total VAT liabilities. The aim is to improve financial transparency and reporting through structured e-invoicing and data reporting systems.
Latvia has some certification rules for POS systems, but they’re not too complicated. Since the country is likely to follow other EU countries, getting ready early can help businesses stay ahead.
Latvia had originally planned to make B2B e-invoicing mandatory in 2026, but the government decided to delay it to January 1, 2028. Many small and medium-sized businesses said they needed more time to upgrade their systems and understand how to send invoices in the required formats like Peppol BIS 3.0 or UBL 2.1. The State Revenue Service (VID) also needed more time to build and test a reliable system to receive and process these invoices.
Several other European countries have already made the switch successfully. Italy, Belgium, and Serbia have all adopted e-invoicing, helping set the pace for digital transformation across the EU.
As DDD Invoices, we’ve supported many businesses through the transition making it easier for them to stay compliant, save time, and avoid manual errors. Latvia is now on the same path, just taking a more gradual approach to make sure every business can keep up.
Latvia has been compliant with EU Directive 2014/55/EU, which requires all public sector institutions in the EU to receive and process structured electronic invoices. Since April 2020, Latvian central government authorities have accepted e-invoices, and from January 1, 2025, it is mandatory for all suppliers to issue e-invoices when invoicing government institutions.
Latvia operates a decentralized model for e-invoicing. Public institutions may receive invoices via the eAdrese platform, which is maintained by the State Regional Development Agency (VRAA), or through certified Peppol service providers. All e-invoices must conform to the EN 16931 European standard using structured formats such as Peppol BIS 3.0 or UBL 2.1.
Latvia is introducing mandatory B2B e-invoicing in phases through amendments to the Accounting Law. Originally planned for 2025, the mandatory B2B e-invoicing requirement has now been postponed to January 1, 2028, giving businesses more time to adapt.
Once in effect, all Latvian-registered businesses will be required to issue structured electronic invoices to other businesses, including to public institutions. E-invoice data will need to be submitted to the State Revenue Service (VID) using compliant structured formats such as Peppol BIS 3.0 or UBL 2.1, aligned with the EN 16931 European standard.
All businesses in Latvia will have to issue e-invoices in a structured format. The invoices must follow European standards and be sent using Peppol BIS 3.0 or UBL 2.1, both aligned with EN 16931. Every invoice will also need to be submitted to the State Revenue Service (VID). These rules apply to all Latvian-registered companies, no matter their size.
The new rules mainly cover domestic B2B transactions between companies in Latvia. Some cases, like payments through electronic cash registers or systems such as the National Health Service, will be exempt. Businesses have until January 1, 2028 to fully prepare for structured e-invoicing. Service providers like DDD Invoices can support companies in adapting early through the Peppol network and ensuring compliance.
As of now, Latvia does not have a mandate for B2C (Business-to-Consumer) e-invoicing. This means businesses in Latvia are not legally required to issue structured electronic invoices when selling goods or services directly to consumers.
However, companies may still adopt e-invoicing voluntarily for B2C transactions to streamline their billing process, improve record-keeping, and provide customers with faster, digital payment experiences.
In Latvia, fiscalization plays a key role in ensuring tax compliance for retail and consumer-facing businesses. Certified fiscal devices such as cash registers and POS systems must be used to issue receipts that meet all legal requirements, including clear transaction details like date, time, item breakdown, VAT, and seller identification.
These devices must be officially approved by the State Revenue Service (VID) and installed by certified service providers. Each device is required to securely record every transaction, store the data in a tamper-proof format, and produce daily summary reports (Z-reports) to confirm compliance.
Latvian fiscal systems are not connected in real-time to the tax authority like in some other EU countries, but they are designed to ensure accuracy in VAT calculation, support audit readiness, and help prevent fraud. The use of certified fiscal devices is mandatory for most retail businesses.
As of January 1, 2028, failure to adhere to the Latvian e-invoicing requirements in B2B relationships may lead to severe fines in case your company does not comply with the rule. Failure to send a structured e-invoice in Peppol BIS 3.0 or UBL 2.1 format or failure to report the data of the invoice to the State Revenue Service (VID) may lead to the imposition of a fine up to € 2,000 per offense.
In case you miss out on issuing invoices that do not comply with the provisions of VAT, you may be punishable through fines (maximum amount fixed at 30% due on the VAT which was not paid) and interest charges which are charged 0.05% rates per day on delayed payments. The fines are on a per violation basis, an incorrect or late invoice would institute a fine.
In order to prevent these risks ensure that your business will be ready by the year 2028. To stay out of trouble and stay on track, make sure to use the appropriate format, encourage sending invoices using the approved channels such as eAdrese, and keep the records properly maintained.
Latvia’s move toward e-invoicing is closely tied to European Union regulations, particularly Directive 2014/55/EU, which requires public authorities in all member states to accept structured electronic invoices. Latvia has adopted this through the national standard LVS EN 16931‑1:2017, ensuring that e-invoicing practices are following EU rules.
Starting January 1, 2025, all B2B transactions must follow this format, using platforms like eAdrese or approved access points that support structured formats such as Peppol BIS 3.0 or UBL 2.1. These changes aim to make transactions smoother and more transparent, both locally and when doing business with other EU countries.
E-invoicing in Latvia is becoming the new standard, but keeping up with changing rules and formats can be complex. At DDD Invoices, we make it simple. Our platform connects directly with Latvia’s e-invoicing system and ensures your invoices are sent, received, and stored in line with both local and EU regulations.
You’ll save time, avoid errors, and stay fully compliant. Whether you’re just getting started or looking to upgrade your current setup, we’re here to help you every step of the way.
Let DDD Invoices handle the technical side, so you can focus on growing your business.
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Beginning January 1, 2025, every business should issue an electronic invoice on a B2G basis. That would be any invoice to a public sector body. The B2B mandate has been delayed and will now start on January 1, 2028, to allow businesses additional time to get ready.
Latvia accepts the European standard of e-invoicing EN 16931, and invoices should be in such format as Peppol BIS 3.0 or UBL 2.1. These forms are organised and computer-readable, which facilitates the processing of invoices done in Latvia and other EU members.
Yes. The consequences of not sending e-invoices that are compliant and can be rejected with a fine up to € 2000 per invoice, VAT penalties or have your invoices rejected by the public sectors. To these issues DDD Invoices making sure that your invoicing activity is completely follow with the Latvian and EU needs.
Written by the Compliance team
Reviewed by Denis V. P.
DDD Invoices is an enterprise-grade platform delivering a powerful infrastructure for creating, sending, receiving and storing electronic documents. DDD Invoices enables software providers like ERPs, SaaS, eCommerce, POS systems, accounting & invoicing softwares, billing services and others, to easily adhere to global invoicing compliance requirements and shorten their time-to-market.