e-Invoicing in Latvia: Timeline, Guidelines, Process, and Steps for Implementation

Latvia is preparing to experience a drastic change in its invoicing process with the progressive introduction of compulsory e-invoicing. From 1 January 2025, companies supplying goods or services to the public sector (B2G) are required to submit e-invoices in an approved format. Starting from 1 January 2026, this requirement will extend to all transactions between Latvian-registered businesses (B2B). E-invoices should also meet the European standard EN 16931 and be sent through the national platform Latvija.gov.lv, eAddress, or PEPPOL.

This guide covers the understanding of e-invoicing in Latvia, the timeline for e-invoicing, regulatory requirements, invoice format, step-by-step implementation, and how companies can implement a successful transition.

What is e-Invoicing in Latvia?

E-invoicing in Latvia involves the digital generation, transmission, and storage of invoices in a format that complies with the European Union regulations. The invoices are supposed to be developed in XML format in accordance with the European Standard EN 16931 and PEPPOL BIS Billing 3.0 framework. The PEPPOL network and the eAddress platform (for government institutions) are the main channels for sending e-invoices in Latvia. As of April 1, 2020, public institutions have been obligated to receive e-invoices. From January 1, 2025, it is required that G2G and G2B transactions be carried out electronically via www.latvija.gov.lv portal. From January 1, 2026, B2B invoices should also be sent in real time to the State Revenue Service (SRS).

e-Invoice Implementation Timeline

Latvia has taken a gradual approach to Latvia e-invoicing, ensuring a smooth approach for companies and public authorities

e-Invoicing Process in Latvia

Issuing, creating, and receiving e-invoices in Latvia takes place according to a systematic procedure in order to comply with national and EU law.

1. Create the e-Invoice: Create an invoice in XML format based on the European standard (EN 16931) and PEPPOL BIS Billing 3.0.
2. Send the Invoice: Submit it through Latvia's eAddress platform, PEPPOL, or commercial e-invoicing platforms.
3. Receive the Invoice: Public authorities and companies are required to receive compliant e-invoices via eAddress, email, or third-party accounts.
4. Ensure Compliance: B2B invoices are to be reported in real-time to the State Revenue Service (SRS) from 2026.
5. Take Advantage of Government Infrastructure: Latvia’s Secure Electronic Delivery Platform (eAddress) and ePakalpojumi.lv portal support secure invoice exchange.

e-Invoicing Compliance Guidelines

Latvian businesses have to adhere to these essential e-invoicing guidelines to maintain government compliance.

1.  Mandatory Implementation: From January 1, 2025, e-invoicing became mandatory for B2G transactions. From January 1, 2026, e-invoicing will be mandatory for B2B transactions, with real-time reporting to the State Revenue Service (SRS).
2. Invoice Structure: PEPPOL BIS 3.0, in line with EN 16931 standards.
3. Submission Channels: eAddress system, PEPPOL, or approved e-invoicing service providers.
4. Digital Signature: Not required.
5. Archiving Requirement: Invoices must be electronically archived for at least 5 years.
6. Regulatory Body: The Ministry of Finance is responsible for compliance and enforcement.

Who Needs to Comply with e-Invoicing in Latvia?

The following entities need to comply with e-invoicing regulations in Latvia: 

• All public sector bodies must receive and process e-invoices.
• Latvian-registered businesses involved in B2G or G2G transactions are required to issue e-invoices.
• B2B compliance is not yet mandatory but will become applicable from January 1, 2026.

Benefits of e-Invoicing in Latvia

Here are the multiple benefits of e-invoices in Latvia: 

1. Cost Reduction: e-invoicing eliminates the cost incurred on paper, print, and postage, resulting in substantial cost reduction.
2. Improved Accuracy: Automated invoicing prevents human mistakes, resulting in fewer disputes and smoother transactions.
3. Improved Cash Flow: Processing and sending invoices at a quicker speed ensures timely payment, resulting in better cash flow management for businesses.
4. Regulatory Compliance: Adhering to e-invoicing standards ensures national and EU laws compliance, facilitates cross-border trade, and integration into the European digital market. ​
5. Environmental Sustainability: Reducing paper usage supports environmental conservation efforts, facilitating corporate social responsibility.

How can ClearTax help a business with e-Invoicing in Latvia?

ClearTax, a reputable e-invoicing solution provider, offers smooth Latvia e-invoicing compliance through:

• Smooth ERP & POS Integration: Automates and delivers PEPPOL BIS 3.0 format invoices according to Latvian standards.
• Real-Time Compliance Verification: Verifies invoices against Ministry of Finance rules and VAT laws for validation.
• Cloud e-Invoicing Platform: Facilitates easy tracking, reconciliation, and safe storage of invoices for 5 years.
• Automated Compliance & Reporting Alerts: Eliminates mistakes, avoids missed deadlines, and minimizes the risk of non-compliance.

Conclusion

Latvia's e-invoicing law requires structured invoice exchange in PEPPOL BIS 3.0 format through channels such as eAddress according to EU standard EN 16931. With B2G invoicing already in force and B2B mandates approaching in January 2026, companies must implement compliant formats, real-time reporting to the State Revenue Service (SRS), and secure archival systems. ClearTax makes it simple with certified e-invoicing software, ERP integration, and automated compliance verification to ensure you are always audit-ready and future-proof.