E-invoicing in Latvia (Mandatory B2B e-invoices in 2025)

Last modified on 2023-06-12 in Countries

E-invoicing is a digital solution that automates the process of generating, sending, and receiving e-invoices in a digital format. It replaces traditional paper-based invoicing methods, offering increased efficiency, cost savings, and improved accuracy in financial transactions.

Starting in 2025, e-invoicing regulations in Latvia will begin via the PEPPOL framework for mandatory B2B and B2G transactions.

Latest e-invoice news

The Latvian Ministry of Finance has announced its plans of enforcing the issuance of electronic invoices in 2025.

Legislation timeline

• April 2020 - In accordance with Directive 2014/55/EU, all central government contracting authorities and entities in Latvia are required to receive and process electronic invoices

• January 2023 - Usage of eAddress is required for all legal entities

• January 1 2025 - Proposed introduction of mandatory B2G and B2B e-invoicing

What are the Latvian e-invoice rules?

Since the Republic of Latvia is utilizing the post-audit model, the public administration must accept electronic invoices and documents in any format. An electronic signature is also not required in order to issue an electronic invoice.

Due to the introduction of mandatory e-invoicing in a few years, registered legal entities with transactions in Latvia must comply with the PEPPOL standard to receive and process e-invoices to streamline efficiency in a uniform format.

5 Steps for sending Latvian e-invoices

1. Determine a suitable method

There are three methods from which a company can choose before new legislation is implemented:

• eAdrese or eAddress - Tool for companies requiring secure communication for B2G purposes with the central government through latvija.lv website

• ePakalpojumi or eServices - This method is for companies who are operating within the Riga Municipality used mostly for governmental suppliers who need to connect with the state government

• Other methods - Since e-invoicing is not mandatory yet, other options are also acceptable based on an agreement between trading partners

2. Prepare the e-invoice

Until 2025, B2B transactions can be issued in any format and B2G invoices must comply with the European Standard on e-invoicing (EN-16931). It is recommended to issue electronic invoices in Peppol BIS Billing 3.0 format.

3. Choose a service provider or platform

The platform is dependent on the type of method utilized and starting in September 2023, e-invoice issuers will also have the option of using eSaskaita. A service provider such as DDD Invoices can also connect to any platform and ensure compliance.

4. Identity authentication

In the case of choosing the eAddress method, the invoice can be authenticated through an eID card, eParaksts or eParaksts Mobile.

5. Send the e-invoice

Latvian Peppol Network

Peppol (Pan-European Public Procurement Online) is an international e-invoicing network that facilitates secure and standardized electronic document exchange between businesses and public entities. Peppol enables seamless communication and interoperability among participants across different countries.

In the context of Latvian e-invoicing, the integration of Peppol has played a significant role in streamlining invoicing processes. By connecting to the Peppol network, businesses in Latvia can exchange electronic invoices in a standardized format with their trading partners, both domestically and internationally. This integration ensures consistency and facilitates efficient communication between different entities within the e-invoicing ecosystem.

Who needs to send compliant e-invoices in Latvia?

Currently, for B2G e-invoicing purposes, all suppliers must be able to obtain and process them and for B2B there is no mandatory regulation. These are still able to exchange invoices and other documents electronically through the recommended Peppol BIS 3.0 format.

How DDD Invoices can help

Latvia utilizes Peppol which businesses can connect to through certified Peppol Access Points such as DDD Invoices.

DDD Invoices simplifies e-invoicing for B2B transactions by providing an e-invoicing solution that integrates into their existing software. This allows companies to automate the invoicing process and eliminate the need for manual data entry.

We stay up to date with local tax regulations so you don’t have to. Satisfy e-invoicing compliance in Latvia with ease through a single API and if we do not currently serve a territory where you require e-invoicing, let us know, and we can develop it in 2-3 weeks. This way, we can ensure your VAT compliance at all times, wherever you do business.

FAQs about mandatory e-invoicing in Latvia