The Latvian Ministry of Finance has recently published a draft law on May 27, 2024, requiring e-invoicing for B2B and B2G transactions.

Timeline

The first phase starting from January 1, 2025 will cover B2G transactions (invoices issued to budget institutions). One year later, as of January 1, 2026, the scope will be extended to include B2B transactions.

Impact

According to proposed changes, Latvian businesses will be obliged to issue structured invoices complying with the European Standard for e-invoicing in cases where the recipient of goods or services is located in the territory of Latvia.

More details regarding the transmission methods of invoices between businesses will be further regulated by the Cabinet of Ministers. Potential options mentioned by the Ministry include Peppol, agreements between parties, and a free email delivery option, all of which will be further detailed.

It’s important to note that there will be a requirement for transmitting invoice data to the tax authority according to the Ministry of Finance’s announcement, with further details yet to be published.