The Latvian Ministry of Finance has recently published a draft plan aimed at curbing the shadow economy for the period of 2024-2027, which includes the implementation of a mandatory e-invoicing system for all B2B transactions.

Timeline

Full implementation of Latvia's electronic invoicing system is targeted for completion by December 30, 2025.

Impact

According to the draft plan, issuing and receiving structured e-invoices for B2B transactions will become mandatory. This initiative is designed to streamline the invoicing process and introduce a technical solution for the efficient circulation of e-invoices. Additionally, the system will feature the implementation of real-time reporting, aimed at enhancing the monitoring and compliance of VAT payment obligations.

Latvia is paving the way for mandatory B2B e-invoicing, with further details anticipated to be released in the coming months.